Space Exploration Technologies (SPCX +2.38%) may be the most exciting stock on the market right now, but I think there are plenty of better investment opportunities outside of SpaceX. One of those areas is quantum computing, a field that's starting to gain serious momentum and could reach viability status by 2030. If that's the case, investors need to position themselves to take advantage of a massive, growing trend that could pay off big time.
I've got three quantum stocks that look like excellent buys now, and investors should consider buying them instead of SpaceX, as the upside is greater.
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IonQ
IonQ (IONQ 0.69%) is one of the top quantum computing pure plays available, and has reached that level due to its unique approach. Instead of using a superconducting quantum computing technique, it uses trapped ions, which yield superior accuracy. In fact, IonQ holds the world record for two-qubit gate fidelity -- the most commonly used measurement for accuracy in the quantum computing industry.
NYSE: IONQ
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This has led to strong demand for its products, and several researchers and early adopters are starting to purchase some early-stage systems so they are ready when more commercially viable systems are available. IonQ's revenue is booming as a result, with it rising 755% in Q1 to $65 million.
With industry-leading accuracy and a large, 256-qubit system available, IonQ looks poised to be a frontrunner in the quantum computing arms race.
D-Wave Quantum
D-Wave Quantum (QBTS +2.52%) is also taking a different approach than most quantum companies. Its initial quantum offering is an annealing quantum computer, which helps solve optimization problems. This product is already being utilized in some industries to create schedules and optimize supply chains. However, applications are far more limited compared to a general-purpose quantum computer, and D-Wave is also developing one of those.
NYSE: QBTS
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This two-faced approach makes D-Wave a bit less risky of a bet compared to some competitors in the industry, but it still has a long way to go before becoming a viable business. However, it did show signs of strength thanks to two orders for its quantum computers. Combined, those deals are worth about $20 million, which represents significant growth for D-Wave.
D-Wave may be a bit more of a long shot than IonQ, but if it works out, the upside is immense.
Nvidia
Last is Nvidia (NVDA 0.62%), which may seem like an odd inclusion on a quantum computing stock list, since it has explicitly stated that it has no plans to build a quantum processing unit. However, that doesn't mean it's ignoring the field. Nvidia sees a future where quantum computing and traditional computing methods are used side by side. Nvidia already has a grip on the traditional computing market, so it modified its NVLink (its networking hardware) to the NVQLink, with the "Q" indicating that quantum computing can easily connect to existing networks.
NASDAQ: NVDA
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It also launched an AI model that's used for quantized error correction and adopted its CUDA software to include quantum functions, renaming it CUDA-Q. All of this shows that Nvidia isn't ignoring quantum computing; it's just creating an environment where quantum companies must work with Nvidia once their products have reached commercial scale.
With massive demand for traditional computing power already at record levels, Nvidia will be able to continue its dominance as the world's largest company for the foreseeable future. Additionally, if it finds a quantum company with huge potential, it may buy them out at a premium to gain access to the technology. We'll see what the future holds for Nvidia, but even if quantum computing takes over, Nvidia will still be a major part of the computing landscape.
