Want to Invest in Quantum Computing? 2 Stocks That Are Great Buys Right Now

Core Insights - The quantum computing market is poised for significant growth, with a projected compound annual growth rate (CAGR) of 20.5% from 2025 to 2030 [2] - IonQ and Microsoft are highlighted as two investment opportunities in the quantum computing sector, each representing different risk profiles [3] Company Insights: IonQ - IonQ offers three quantum computers: the Aria system, the Forte system, and the Forte Enterprise system, with plans to launch the Tempo system in 2024 [4] - The company is focused on reducing the size of quantum processing units (QPUs) using proprietary "trapped ion" technology, aiming for cheaper and more accurate quantum computers [5] - IonQ's total quantum computing power, measured in algorithmic qubits (AQ), is expected to grow from 36 AQ in 2024 to 1,024 AQ by 2028, with gate fidelity improving from 99.9% to 99.95% [6] - IonQ anticipates a revenue growth of 75%-93% in 2024, projecting revenues of $38.5 million to$42.5 million, with further increases to $83.2 million in 2025 and$153.3 million in 2026 [7] - Despite impressive growth, IonQ is expected to remain unprofitable in the near term, with a high enterprise value of $6.53 billion, trading at 43 times its 2026 sales [8] Company Insights: Microsoft - Microsoft is recognized as a leader in cloud and AI, making strides in the quantum computing market with the introduction of the Majorana 1 chip, which can accommodate eight topological qubits [9][10] - The Majorana chips are expected to be able to deliver up to a million qubits of processing power when chained together, indicating that useful quantum computers may be closer to realization than previously thought [11] - Microsoft plans to integrate these chips into its cloud infrastructure and AI ecosystems, enhancing its service offerings in the future [12] - Analysts project a CAGR of 14% for Microsoft's revenue and EPS from fiscal 2024 to fiscal 2027, with the stock being reasonably valued at 27 times next year's earnings, making it a lower-risk investment in the quantum computing space [13]