Quantum computers can process certain tasks much faster than classical computers, but they're larger, more expensive, and consume more power. They also tend to output a higher percentage of errors. But over the next decade, those computers will likely become smaller, cheaper, more power-efficient, and more accurate. As that happens, more clients could use quantum computers for more mainstream applications rather than niche research projects.
To separate the potential winners and losers in this nascent market, we should focus on quantum stocks where insiders are still buying more shares than they're selling. Two such stocks that stand out are IBM (IBM +0.74%) and IonQ (IONQ 0.46%). Let's see why they could both turn a modest $5,000 investment into much more over the long term.
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IBM
IBM is often considered a slow-growth tech giant, but it's been expanding its quantum computing business over the past decade. It's already deployed more than 85 quantum systems to run over 3 trillion programs, and it's launched several experimental chips (Eagle, Heron, Nighthawk, and Loon) to build a fully error-free quantum system by 2029.
NYSE: IBM
Key Data Points
IBM deploys both less powerful research-scale quantum systems and more powerful utility-scale systems. Its clients are still primarily universities and government research institutions. Still, it could reach a broader market by blending those quantum services into its expanding ecosystem of hybrid cloud and artificial intelligence (AI) services.
From 2025 to 2028, analysts expect IBM's revenue and EPS to increase at CAGRs of 5% and 7%, respectively, as its hybrid cloud and AI businesses continue to grow. IBM's stock still looks reasonably valued at 23 times this year's earnings, while its insiders have bought nearly 60% as many shares as they sold over the past three months.
IonQ
IonQ produces its own quantum systems (Aria, Forte, and Tempo) and provides that computing power as a cloud-based service. Unlike IBM and other older quantum system makers, which accelerate electrons through loops in cryogenically refrigerated systems, IonQ uses tiny lasers to trap ions in a quantum state. These trapped-ion systems can operate normally at room temperature, and they generally have lower error rates than electron-based systems.
NYSE: IONQ
Key Data Points
IonQ expects its quantum computing power to increase from 64 physical qubits in 2025 to more than 2 million qubits in 2030. That's an ambitious roadmap, but it could hit those targets by miniaturizing its quantum processing units (QPUs) and scaling up its systems.
From 2025 to 2028, analysts expect IonQ's revenue to surge nearly fivefold. Most of that growth should be driven by its new Tempo system and fresh government contracts. It will remain unprofitable for the foreseeable future -- and its stock isn't cheap at 26 times its 2028 sales -- but its insiders bought nearly four times as many shares as they sold over the past three months. That bullish sentiment suggests it has a bright future -- even if its stock stays choppy in this volatile market.
