2 Top Quantum Computing Stocks to Buy in July

Quantum computing might experience rapid expansion in the technology world over the coming years. Experts from McKinsey Digital predict its potential value to reach approximately $1.3 billion by 2035; however, they acknowledge that there is considerable room for doubt.

Should the massive figure materialize, it means prosperous quantum computing firms will undoubtedly please their investors. Here are two promising stocks you might want to think about investing in this month.

IonQ is a high-risk, high-reward company

In the year 2015, quantum physics specialists Christopher Monroe and Jungsang Kim established IonQ (IONQ). Six years down the line, this company became the initial quantum computing firm to make its public debut.

Due to the technology being newly developed and serving as the sole focus of IonQ’s operations, the company hasn’t turned a profit as of yet. Despite nearly doubling its revenue to $43.1 million last year, expenses also grew significantly, resulting in a total loss of approximately $331.6 million.

It seems that profitability might be achieved within the next several years according to CEO Peter Chapman’s prediction. He anticipates this to occur around 2030 with projected sales close to a billion dollars. Thankfully, IonQ boasts a robust financial position and has recently raised $1 billion through common stock sales, leaving it with approximately $1.7 billion in cash reserves for potential use.

One key difference that sets IonQ apart from other quantum computing companies lies in its utilization of trapped-ion technology. Unlike the majority of quantum computers which rely on superconducting qubits, IonQ’s devices store data using quantum bits, or qubits for short, that are held in place by precise laser pulses controlling trapped ions.

The technology known as Trapped-Ion boasts several notable benefits, with one of its key strengths lying in its ability to provide exceptional accuracy – a quality often referred to as ‘high fidelity’ within the realm of quantum computing. A significant hurdle in quantum computing is error reduction, an issue that remains unsolved by any company currently. However, IonQ made a substantial advancement in September 2024 when it announced it had developed the first trapped-ion quantum system capable of surpassing 99.9% fidelity.

From my perspective as an onlooker, I notice that trapped-ion qubits exhibit extended periods of maintaining their quantum state, which we refer to as coherence times. Over time, all qubits degrade and lose their unique quantum attributes. The term ‘coherence time’ signifies the duration a qubit can preserve its quantum state. Typically, in solid-state quantum computing systems, this coherence is measured in microseconds to milliseconds. However, trapped-ion systems showcase remarkably longer coherence times, often stretching from seconds to minutes, making a significant disparity.

IonQ might not be the quantum computing method that’s universally used, but its unique approach results in incredibly low error rates. Moreover, it has secured notable contracts such as multiple agreements with the U.S. Air Force Research Lab and one with the Department of Defense. This could make it an attractive option for investors.

IBM is a pioneer in quantum computing

IBM, while primarily known for its cloud services, software, and artificial intelligence (AI), has a rich legacy in quantum computing as well. The company began working on quantum computers more than three decades ago and is recognized for significant breakthroughs in this field.

In 2021, IBM unveiled its IBM Eagle, a processor that exceeded 100 qubits, marking a first. Currently, IBM’s Condor stands as the second largest quantum computer globally, when ranked by the number of qubits.

The business has unveiled a strategy for quantum development, featuring challenging targets. They aim to showcase an instance of quantum superiority by 2026, meaning a quantum computer resolving a task quicker than any conventional computer could manage. By the year 2029, their goal is to create Quantum Starling, a robust quantum computer that can function effectively even with errors present.

Due to its large scale and substantial resources, the company has the capacity to pour significantly more funds into quantum computing compared to a fledgling company such as IonQ. Recently, they revealed intentions to allocate an astounding $30 billion over five years for quantum technology and mainframes, which is part of a broader plan to invest $150 billion in American computer manufacturing over the same period.

In the first quarter of 2025, IBM saw a slight increase in revenue ($14.5 billion) and gross profit ($8 billion) compared to the same period last year. The rise in their gross profit margin was particularly notable, climbing from 53.5% to 55.2%. At the end of the quarter, IBM boasted a substantial cash reserve of $17.6 billion, which positions them well for further development of their quantum computing program.

This year, its share price has climbed by approximately 29%, making it pricier now. Yet, with a trading value of below 27 times projected forward earnings (after adjustments), it can be considered reasonably priced.

As a tech enthusiast, I’m all in for the quantum computing revolution! However, let me clarify that investing in this field is still a gamble. We can’t predict with certainty when these machines will become commonplace or even if they will. Given the uncertainty, it might not be prudent to risk everything on quantum computing. But, if you’re keen on riding this wave, consider diversifying your portfolio by purchasing shares of IonQ or IBM, or both. Keep in mind that investing always involves risks and returns are never guaranteed.

2025-07-20 19:32

IonQ is a high-risk, high-reward company

IBM is a pioneer in quantum computing

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