ChatGPT and generative AI took the market by storm in 2023. After that, many technology titans, namely Nvidia (NASDAQ:NVDA), saw their share prices appreciate immensely off the back of the AI “craze.” Quantum computing stocks may now be the next promising technology stocks of the 21st century. It has the potential to solve complex problems that normally slow down classical computers, such as optimization, cryptography, machine learning and simulation.
While quantum computing may still be in its infancy, investors desiring to invest in in the up-and-coming technology should consider one of following three quantum computing stocks to have the best returns.
Rigetti Computing (RGTI)
Rigetti Computing (NASDAQ:RGTI) is a pure-play quantum computing business that through a SPAC deal. The quantum computing firm is , which 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 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.
While shares are only trading at above $1, interested investors should take the chance to buy shares now.
IonQ (IONQ)
IonQ (NYSE:IONQ) was the first pure-play among quantum computing stocks, and the company has become the leader in trapped-ion quantum computing. This subsect of quantum computing uses electrically charged atoms to store and manipulate qubits.
To date, the company claims to have built the world’s which has achieved a quantum capacity 32 qubits. IonQ modular quantum computers by the end of 2023. Similar to Rigetti, in order to establish its product in the broader market, IonQ has made its quantum computers accessible to customers and developers through large cloud platforms.
IonQ is still in the pre-revenue stage, but it to generate $19 million in revenue in 2023 and $88 million by 2026. IonQ’s shares rose more than 259% in 2023 and could continue outperforming the market in 2024 as enterprises seek advanced computing technology.
Taiwan Semiconductor (TSM)
Taiwan Semiconductor (NYSE:TSM) is the world’s largest contract chipmaker and has to be a part of the portfolio of any investor betting on the next chip revolution. The contract chip manufacturing produces chips for clients such as Apple (NASDAQ:AAPL), Qualcomm (NASDAQ:QCOM) and Nvidia. TSM specializes in advanced manufacturing processes, such as 5-nanometer and 3-nanometer technologies, which enable smaller, faster and more power-efficient chips. Due to its competencies in chip manufacturing, the company also plays a key role as a supplier of AI chips for ChatGPT.
Last year, I noted how its report showed TSM not only boosted revenue guidance but also predicted the chip slump is coming to an end. Well, TSM’s , released a few days ago, are bolstering that sentiment. CEO C. C. Wei the company would return to growth in 2024, definitively marking the bottom of the chipmaker slump.
While TSMC currently manufacturers GPUs and CPUs for Nvidia, Apple and AMD (NASDAQ:AMD), the company could play a serious role in manufacturing quantum computers, once they become more commercial.
On the date of publication, Tyrik Torres did not hold (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.
