Why Buy QBTS & IONQ Stocks After NVIDIA Quantum Day?

NVIDIA Corporation’s NVDA CEO Jensen Huang recently changed his stance on quantum computing from two months ago. What optimism on quantum computing does he exude, and why should investors consider buying D-Wave Quantum Inc. QBTS and IonQ, Inc. IONQ stocks now? Let’s see – Huang Retracts CES Conference CommentsAt the CES conference in January, Huang stirred a controversy by saying that it may take a minimum of 15 years for quantum computing to be useful, while 20 years is a more realistic time frame. He compared the present state of quantum computing to NVIDIA’s early struggles, highlighting that it took the semiconductor behemoth 20 years to build its software and hardware business to its current level.His comments profoundly impacted quantum computing stocks, causing a sharp decline in most of them. However, at NVIDIA’s “Quantum Day” event last week, Huang backtracked from his January comments and accepted that his observations had been misleading. He invited quantum computing executives to the “Quantum Day” event and acknowledged that quantum computing has incredible potential ahead. Huang was astonished by the quantum computing stocks’ decline following his January comments. Instead, he said that NVIDIA is collaborating with quantum computing companies to enhance the technology. He expects the technology to have an extraordinary impact, even though it is insanely complicated.Quantum Computing – A Burgeoning FieldHuang’s latest comments restored faith in quantum computing, which anyhow is gaining acceptance for its superior problem-solving capabilities by leveraging quantum mechanics over traditional computing.Quantum computers are vital for training artificial intelligence (AI) algorithms, and companies are utilizing quantum computing for machine learning and optimization. McKinsey expects quantum computing to add $1.3 trillion to the economy by the end of 2035, while marketsandmarkets predicts the global quantum computing market to reach $5.3 billion by 2029 at 32.7% CAGR from the current $1.3 billion.2 Quantum Computing Stocks to Buy Right AwayIt’s quite palpable that investors would like to take advantage of Huang’s optimism on quantum computing and its growing trend. However, since quantum computing is in its early stage, placing bets on stocks from this space requires a lot of thought. Hence, we have selected two stocks that warrant special attention and are enticing buys.First on the list is D-Wave. The company’s partnership with the Julich Supercomputing Centre is expected to boost D-Wave’s sales to $10 million in the first quarter, way above analysts’ projection of $2.55 million. Moreover, in the fourth quarter, D-Wave’s order bookings surged 502% to $18.3 million, a tell-tale sign that the quantum field is advancing steadily. The company’s expected earnings growth rate for the current year is 66.7%. Brokers, too, remain hopeful about D-Wave. They have raised its average short-term price target by 10.7% to $9.25 from the previous $8.36. The highest short-term price target is $12, indicating an upside of 43.5%.The second is IonQ, a pioneer in the field of quantum computing since its linear chains of ions can touch 100-plus qubits, which results in fewer errors than other quantum computers. IonQ also helps Amazon.com, Inc. AMZN and Microsoft Corporation MSFT offer AI researchers access to quantum computing models. All these benefited IonQ in the fourth quarter, with its revenues climbing 92% to $11.7 million (read more: NVIDIA vs. IONQ: Which is the Better AI Stock By Far, and a Buy?). The company’s estimated earnings growth rate for the present year is 49.4%. Brokers, too, are optimistic about IonQ. They have raised its average short-term price target by 89.4% to $42.17 from the previous $22.26. The highest short-term price target is $54, signifying an upside of 142.6%.Both D-Wave and IonQ have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here. 5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Amazon.com, Inc. (AMZN): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report IonQ, Inc. (IONQ): Free Stock Analysis Report D-Wave Quantum Inc. (QBTS): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks