‘A Must-Have,’ Top Investor Says of Quantum Computing Stocks

Quantum Computing (NASDAQ: QUBT) is attracting considerable attention as the quantum revolution takes shape, with this emerging sector poised for exponential growth in the decades to come.

A BCG report estimates that by 2040, the global quantum computing industry could generate between $450 billion and $850 billion in economic value, supporting a $90 billion to $170 billion market for hardware providers and of software.

Capitalizing on this potential, Quantum Computing is dedicated to providing accessible and cost-effective quantum solutions – a strategy that has caught the attention of lead investor KM Capital, who is among the top 4% of TipRanks equity professionals.

What sets the company apart is its integrated approach, integrating hardware and software into a complete solution. “This combination,” says KM, “is important for solving the difficult challenges of quantum computing and helping more companies and industries use this technology.

Of course, the problem with companies operating in this sector is that none generate significant revenue, which is also the case for QUBT. However, KM believes its potential makes it a candidate to “become a mega-cap in the long term.”

Although the revenue generated is still minimal, QUBT is moving closer to commercialization. Last fall, the company launched a pilot program aimed at securing orders from early adopters of its TFLN foundry service. “This marks an important step forward, demonstrating the company’s active efforts to penetrate the market and build a connected ecosystem,” says the 5-star investor.

There are other promising signs regarding commercialization. For example, in 2024, the company sold a quantum LiDAR prototype to Johns Hopkins University for $200,000, demonstrating the potential commercial applications of its quantum technology.

Additionally, QUBT has extended its Cooperative Research and Development Agreement (CRADA) with Los Alamos National Laboratory to explore the capabilities of its Dirac-3 quantum optimization machine. This collaboration not only promotes further research and development, but also paves the way for potential advances in quantum computing applications.

Naturally, there are risks to consider. With the industry at such an early stage, everything could go haywire and there is no guarantee that QUBT’s approach will become the dominant or most commercially viable solution. Additionally, the company’s technology has not yet demonstrated scalability, and the time frame for widespread adoption of quantum solutions may be longer than expected.

That said, KM believes these are risks worth taking. “I think QUBT is a ‘strong buy’ as it appears to be a compelling investment for exposure to disruptive quantum technologies,” the investor summarized. “Investing in QUBT in 2025 is, in my opinion, like investing in Microsoft or Apple in the 1980s. There is great uncertainty, but also vast potential, which means QUBT definitely deserves a place in my portfolio. (To see the KM list, click here)

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Disclaimer: The opinions expressed in this article are solely those of the investor featured. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.