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Wall Street Favorites: 3 Quantum Computing Stocks with Strong Buy Ratings in January 2024

After ChatGPT and Generative AI, quantum computing may be the field of research to bring about the next technological revolution in the 21st century. Quantum computing has the potential to solve complex problems that normally slow down classical computers, such as optimization, cryptography, machine learning, and simulation. This has led to this list of quantum computing stocks for January 2024.

While this kind of novel technology may still be in its infancy, investors desiring to invest in the up-and-coming technology should consider one of the following three quantum computing stocks with “Strong Buy” ratings from Wall Street analysts.

Rigetti Computing (RGTI)

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Rigetti Computing (NASDAQ:RGTI) is a pure-play quantum computing business that is vertically integrated. This simply means the company is involved in both designing and manufacturing its multi-chip quantum processors. Rigetti uses superconducting circuits as qubits, which are fabricated on silicon chips and operate at near-zero temperatures. In order to get deliver its quantum computing capabilities to clients, Rigetti leverages cloud service networks, while also providing quantum software development tools as well as quantum hardware design and manufacturing.

Rigetti Computing’s financials show robust growth potential, as the company generated $13 million in revenue in 2022, up 46% year-over-year. The quantum computing firm’s 2023 financials appear on the way to surpass 2022’s numbers. RGTI’s shares proved volatile in 2023. At one point, RGTI returned more than 200%, but the stock ended the year at only a 35% return. This makes it one of those quantum computing stocks for January 2024.

Wall Street analysts have given the stock a resounding “Strong Buy” rating, and while shares are only trading at above $1, interested investors should take the chance to buy shares now.

D-Wave Quantum (QBTS)

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D-Wave Quantum (NYSE:QBTS) is the oldest and most established quantum computing company in the market. The company is the pioneer of quantum annealing, a computing technique used to find the optimal solution for a given problem. D-Wave Quantum has built several quantum annealers with more than 5,000 qubits, which allows greater potential for commercial applications.

D-Wave Quantum offers its quantum annealers and software tools through its own cloud platform, called Leap. QBTS also offers a suite of developer tools, called Ocean, which helps users design, develop and deploy quantum applications. The quantum computing company has a diverse customer base, including government agencies as well as corporations.

Wall Street analysts expect D-Wave to generate more than $10 million in revenue at the end of 2023, which would represent a 47% YoY increase from the prior period. However, shares are down 32% over the past 12 months, so this could be a chance for investors to buy this stock at a lower price, as D-Wave Quantum has a strong competitive advantage in the quantum computing market.

Nvidia (NVDA)

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Nvidia (NASDAQ:NVDA) was one of the best-performing stocks of 2023, with a staggering gain of more than 240% last year. The chip stock is already off to a great start in 2024, so much so that it could be another record year for Nvidia’s share price. Shares, thus far, have risen to an all-time high of $563.82/share. The chipmaker has been riding high on the booming demand for its AI solutions, which power some of the most advanced and popular applications in the world, such as OpenAI’s ChatGPT and other generative AI platforms.

However, Nvidia is also one of the key players in quantum computing, with its Tensor Core GPUs used to power some of the most advanced quantum simulators and algorithms. Furthermore, Nvidia has developed its own quantum software development kit and platform called cuQuantum, which leverages its CUDA programming model and libraries to enable developers to create and run quantum applications on Nvidia GPUs.

Wall Street remains bullish on Nvidia shares, rating the chipmaker’s stock as a “Strong Buy.” All in all, it’s one of those quantum computing stocks for January 2024.

On the date of publication, Tyrik Torres did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.

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