Quantum computers can process certain tasks much faster than classical computers, but they’re much larger, more expensive, and less accurate. That’s why they’re still primarily used for niche research projects at universities and government agencies.
But over the next decade, quantum systems should become smaller, cheaper, and more accurate — and they could eventually be used for more mainstream computing applications. According to Fortune Business Insights, the quantum computing market could expand at a 33% CAGR from 2026 to 2034 as more industries adopt the technology.
Many quantum computing stocks reached record highs last year, but they pulled back this year as the Iran war, inflation, and the Fed’s first interest rate hike in three years drove investors toward more conservative investments. Let’s take a look at three of those beaten-down stocks — IonQ (IONQ), D-Wave Quantum (QBTS), and Quantum Computing (QUBT) — and see why they might be worth buying before 2027.
How does quantum computing work?
Classical computers still use bits that must be either a 0 or a 1, but quantum computers use qubits that exist in a combination of both states until they are measured. That key difference enables quantum computers to explore a much wider range of probabilities per calculation.
To achieve that quantum state, conventional quantum computers move electron pairs through microscopic electrical circuits made of zero-resistance materials. However, these systems must be cryogenically cooled to prevent thermal noise from breaking the fragile quantum state.
How are these three companies approaching the market?
Several tech giants, including IBM and Alphabet’s Google, already produce those electron-driven systems. However, their massive refrigeration systems and low fidelity generally limit their real-world use.
IonQ produces smaller systems that are more accurate and don’t require cryogenic cooling. Instead of focusing on electrons, its systems trap individual ions with tiny lasers to achieve a quantum state. It’s already launched five commercial systems, which it mainly sells to government and research customers, as well as a cloud-based quantum computing service.
D-Wave designs its own quantum processing units (QPUs) and quantum systems. It uses the same superconducting electron circuits as IBM and Google, so its systems must be cryogenically cooled. Still, it’s carving out a niche in quantum annealing services — which run specific processes — including workflows, supply chains, and logistics — to find the lowest-energy mathematical solutions. It identifies the processes that require the least energy as the most efficient ones, enabling it to act as a quantum-powered “efficiency expert”.
Quantum Computing, also known as QCI, develops photonic chips — which use particles of light rather than electrons or ions — for quantum systems. Photonic chips can operate normally at room temperature and be manufactured in conventional chip fabs with some specialized equipment, making them potentially more scalable and affordable than other types of chips. It ramped up production over the past year and now delivers its chips and components to a wide range of telecom, defense, industrial research, and AI networking customers.
Why could these three stocks be worth buying today?
At first glance, IonQ, D-Wave, and QCI all look expensive — since they trade at 31x, 103x, and 56x their projected 2026 sales. However, that’s because all three companies could grow like weeds over the next two years as they secure more government and enterprise contracts.
Looking further ahead, IonQ, D-Wave, and QCI trade at 13x, 30x, and 14x their projected 2028 sales, respectively. So even though these companies should remain unprofitable for the foreseeable future, they could still be deeply undervalued relative to their long-term growth potential if the quantum computing market expands over the next few decades.
Today, many investors are likely avoiding these three stocks because they’re concerned about elevated interest rates and Treasury yields, which make unprofitable, speculative growth stocks less appealing. But if you expect those headwinds to dissipate next year, it could be a great time to accumulate these early movers in the nascent quantum computing market.
— Leo Sun
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Source: The Motley Fool
