Quantum computing is on the cutting edge of technological advancements, offering a new way to process information compared to traditional systems. Instead of using binary bits that are 0s or 1s, quantum computers harness “qubits.” Remarkably, these qubits can exist in multiple states at once, thanks to quantum mechanics. This ability lets them perform tasks much faster, opening doors for breakthroughs in fields like cryptography, medicine, and AI.
As the buzz around quantum computing grows, the stock market has seen a rise in related companies. This group includes tech giants venturing into quantum spaces and startups centered on quantum breakthroughs. Investing in these stocks allows shareholders to join a tech revolution, reminiscent of the early internet days.
Yet, diving into quantum computing stocks isn’t without risk. The sector is young, and while the upside is significant, there’s inherent unpredictability. Many projects are still in the R&D stage, and staying commercially competitive is challenging. The rapid pace of change also means today’s leaders might be tomorrow’s underdogs. Thus, investors should tread carefully, balancing their excitement with due diligence before venturing in. Keeping this in mind, let’s look at two quantum computing stocks to watch in the stock market today.
Quantum Computing Stocks To Buy [Or Avoid] Now
NVIDIA Corp. (NVDA Stock)
First up, Nvidia (NVDA) is a big player in the world of quantum computing. They make powerful tools called GPUs that help computers work faster. Recently, they made a new system, the DGX Quantum, that combines regular computing with quantum computing. They also introduced something called QODA, which helps scientists do quantum research more easily in areas like AI and finance.
Earlier this month, NVIDIA announced a partnership with Tata Group aimed at providing advanced AI computing platforms. Together, they intend to construct a high-performance AI supercomputer using NVIDIA’s cutting-edge GH200 Grace Hopper Superchip. This venture is set to benefit countless organizations, businesses, AI enthusiasts, and startups across India, offering them state-of-the-art AI tools and capabilities.
In the last six months of trading action, shares of NVDA stock have advanced by 68.03%. Meanwhile, as of Tuesday’s closing bell, Nvidia stock finished the trading day at $435.20 a share.
[Read More] Top Stocks To Buy Today? 3 Tech Stocks To Know
Alphabet Inc. (GOOGL Stock)
Next, Alphabet (GOOGL), the parent company of Google, is also making waves in quantum computing. They have a special tool called Bristlecone that helps reduce mistakes when processing data. Last year, Alphabet started a new company named Sandbox AQ that focuses on quantum computing. This company is using quantum tech for practical things like mapping and creating new medicines.
In July, Alphabet reported better-than-expected Q2 2023 financial results. In detail, Alphabet notched in earnings of $1.44 per share, on revenue of $74.60 billion. This is in comparison with Wall Street’s estimates for the quarter which were earnings of $1.32 per share, along with revenue of $72.77 billion. Additionally, revenue increased by 7.06% versus the same period, the prior year.
Looking at the last six months of trading, shares of GOOGL stock are up 36.38%. While, as of Tuesday’s closing bell, Alphabet stock closed the trading day at $138.04 per share.