Investors are always looking for the next great breakthrough in technology. As computers are indispensable tools for managing everything from finance to healthcare and smart cities, it only makes sense to look at the next stage of development and A-rated quantum computing stocks.
Quantum computing is still in its early stages, but companies are already making inroads. Zapata surveyed executives at 300 companies with revenues of $250 million and computing budgets over $1 million. Of those, over two-thirds spent more than $1 million annually to develop quantum computing applications.
Quantum computer stocks represent companies trying to revolutionize cryptography, optimization, drug discovery and artificial intelligence. It holds promise for solving complex problems currently infeasible for classical computers due to their exponential time requirements.
Here are seven that all get “A” ratings in the Portfolio Grader.
Microsoft (NASDAQ:MSFT) is already having a great year thanks to its $13 billion investment and close partnership with OpenAI, the company behind ChatGPT. That association already pushed MSFT stock up 56% this year. The company’s market cap is nearing $2.8 trillion.
The company is pushing hard in the quantum computing realm. It offers Azure Quantum as a cloud service that allows users to build and refine quantum algorithms.
But it’s also working on higher-level applications, with efforts to make reliable qubits that can remain error-free. The longer a qubit is stable, the more complex applications they can run. And Microsoft is also looking forward to the day when it can create scaled, programmable quantum supercomputers that can solve problems beyond a classical computer.
With its deep pockets (Microsoft had more than $143 billion cash on hand at the end of the last quarter), Microsoft can invest heavily to get a leg up in the quantum field.
MSFT stock has an “A” rating in the Portfolio Grader.
Nvidia (NASDAQ:NVDA) is one of my favorite computer stocks – it’s up more than 230% this year after taking the computing world by storm because of its work with generative artificial intelligence.
Nvidia has a near-monopoly in making the highly specialized semiconductors that make generative AI possible. It’s put Nvidia in a great place, and the company is now the sixth-biggest publicly traded company in the world.
This year, it launched a new system that is the first graphic processing unit-accelerated quantum computing program. Its platform allows researchers to build applications combining quantum and classical computing.
It’s working with quantum computer manufacturer IQM to build future hybrid quantum applications. And it’s collaborating with a software company, Terra Quantum, to enhance data analytics using hybrid quantum computing to provide better performance.
NVDA is uniquely positioned to develop and capitalize on quantum computing. The company has an “A” rating in the Portfolio Grader.
Amazon (NASDAQ:AMZN) is another top company with massively deep pockets. While you can call Amazon an e-commerce company, Amazon does much more.
Amazon Web Services is a comprehensive cloud service with more than 200 fully featured services and is powered by data centers worldwide.
It’s through AWS that Amazon is getting into the quantum computing space. Amazon Braket is the company’s fully managed quantum computing service allowing users to build quantum algorithms and test, run and analyze the results.
AMZN stock is up 70% this year and gets an “A” rating in the Portfolio Grader.
Meta Platforms (META)
Meta Platforms (NASDAQ:META) is another one of those A-rated stocks that fit in a lot of different categories. Want a top-rated tech stock? Meta. Social media stock? Meta again. How about an AI stock? Meta would be one of my top picks there, as well.
Meta, which operates the Facebook and Instagram social media platforms, is one of the best quantum computing stocks you can buy. Meta has already spent $36 billion to build out the metaverse – Mark Zuckerberg’s digital vision where we’ll play, interact, and conduct business. And it will spend billions more.
But if we’re going to get there, it will likely take the power of quantum computing to tie it all together. The metaverse will require a massive tech load and computers working together in ways that we’ve not really envisioned yet. If anything, this is a perfect job for quantum computing.
META stock is up 177% this year and gets an “A” rating in the Portfolio Grader.
Super Micro Computer (SMCI)
Super Micro Computer (NASDAQ:SMCI) doesn’t get the attention of Nvidia, but its stock performance this year is even better than Nvidia’s. SMCI stock is up 245% this year.
The company develops and manufactures computer server and storage solutions. It sells motherboards, power supplies and networking equipment, with plans to It has plans to become a total IT solutions provider that offers servers, AI-powered products, storage, software and services, and products that work with the Internet of Things.
SuperMicro has its fingers in a lot of pies. It has more than 1,000 customers for its high-end servers, with most of those being small- and medium-sized businesses. And it’s a favorite among consumers who are looking to build or customize their computers.
That gives SuperMicro an interesting place as companies and individuals look to build out the quantum computing space. That’s why I like SCMI stock here, and it has an “A” rating in the Portfolio Grader.
Dell Technologies (DELL)
Dell Technologies (NYSE:DELL) is a top computer company making laptop and desktop computers, workstations, mobile devices and notebooks. The company provides cloud solutions, storage devices and software. The company gets roughly 55% of its revenue from computer sales.
Dell is working with IonQ (NYSE:IONQ), a Maryland developer of trapped-ion quantum computers, in an effort to design an integrated hybrid quantum/classical solutions.
Dell hopes that its efforts, coupled with its own position in the high-performance computer market, eventually will allow it to provide vertical-specific quantum computing products for academic, commercial and government customers.
DELL stock is up 80% this year and gets an “A” rating in the Portfolio Grader.
Adobe (NASDAQ:ADBE) is a well-known software development company whose applications allow customers to design, create graphics and illustrations, share photos and publish to the web. Its products include Illustrator, Photoshop, InDesign and Creative Cloud.
It also launched Adobe Firefly, which powers Adobe products with generative AI, allowing users to describe an image and have Adobe create it from scratch.
While quantum computing is a hardware project, Adobe and other companies will develop and customize the software to capitalize on this developing space. And Adobe is positioned better than most – the company has plenty of cash ($7.5 billion), relatively low debt and a broad customer base.
It recorded a company record for revenue in the third quarter, posting $4.89 billion in revenue, and it issued guidance for Q4 revenue to be in the range of $4.975 billion to $5.025 billion.
ADBE stock is up 78% this year and gets an “A” rating in the Portfolio Grader.
On the date of publication, Louis Navellier had a long positions in NVDA and SMCI. He did not hold (either directly or indirectly) any other positions in the securities mentioned in this article.
The InvestorPlace Research Staff member primarily responsible for this article did not hold (either directly or indirectly) any positions in the securities mentioned in this article.