In this article, we will take a look at the 9 quantum computing stocks billionaires are piling into. If you want to skip our detailed analysis of the industry and its growth prospects, go to the 5 Quantum Computing Stocks Billionaires Are Piling Into.
In the continuously evolving realm of technology, quantum computing emerges as one of the most promising and revolutionary fields. By leveraging the principles of quantum mechanics, quantum computing holds the capacity to address intricate problems at an unparalleled speed, surpassing the capabilities of classical computers. Among the advancing global tech industry, quantum computing is in expansion mode, with funding from both, the public and private sectors, set to propel it to unfathomable heights.
A cumulative sum of $34 billion in government investments has been declared for quantum computing, albeit with varying distribution timelines among different countries. Notably, China and the European Union contribute to over two-thirds of this overall investment. The U.S. government, having augmented its funding for quantum computing, including a $1.8 billion announcement in 2022, reveals a total committed investment of $3.7 billion. The convergence of financial and resource allocations for quantum computing, both in the public and private sectors, has the potential to yield significant advancements over the next 12 to 15 years. McKinsey, following discussions with technology executives, investors, and quantum computing experts, estimated that 72% of respondents look forward to the emergence of a fully fault-tolerant quantum computer by 2035. Conversely, the remaining 28% believe that achieving this milestone will extend beyond 2040.
While Alphabet Inc. (NASDAQ:GOOG) and International Business Machines Corporation (NYSE:IBM) engage in a competitive race to develop a reliable quantum computer, prominent financial institutions like JPMorgan Chase & Co. (NYSE:JPM) and Visa Inc. (NYSE:V) are exploring potential applications for this technology. Within the financial sector, machine learning algorithms are anticipated to improve tasks such as fraud detection in transactions, portfolio optimization, and options pricing. In the medical field, Moderna, Inc. (NASDAQ:MRNA) and IBM joined forces in April 2023 to leverage generative artificial intelligence and quantum computing to enhance mRNA technology, the foundational technology behind Moderna's highly successful COVID vaccine.
In another vein, the trajectory of the quantum computing industry's growth is partially contingent on the proliferation of Quantum Computing as a Service (QCaaS). QCaaS is a cloud-based platform enabling users to access and leverage quantum computing resources via the internet. This approach offers individuals and organizations the ability to tap into the capabilities of quantum computers without the need to construct and manage their quantum hardware infrastructure. Research conducted by a subsidiary of the Quantum Daily predicts that the QCaaS industry's size will expand from an anticipated $4 billion in 2025 to $26 billion by 2030.
With these details in mind, let’s take a look at some of the best quantum computing stocks that billionaires love, out of which the top picks include Hewlett Packard Enterprise Company (NYSE:HPE), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA).
9 Quantum Computing Stocks Billionaires Are Piling Into
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Our Methodology
We leveraged Insider Monkey’s repository of billionaire-owned stocks to compile a selection of top quantum computing stocks that garnered the highest interest from billionaire investors in Q3 2023. The compilation comprises prominent technology firms with substantial involvement in the quantum computing sector. The ranking of the best quantum computing stocks is arranged in ascending order based on the count of billionaires holding stakes in them. Additionally, details about the total number of hedge fund investors in these companies as of the third quarter of the year have been provided.
9. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 53
Number of Billionaire Investors: 14
The International Business Machines Corporation (NYSE:IBM), often referred to as “Big Blue,” is a prominent American multinational technology company headquartered in Armonk, New York. IBM is at the forefront of the quantum computing revolution, possessing proprietary computing chips and operating systems that are integral to its Quantum System One quantum computer, unveiled in 2019. International Business Machines Corporation (NYSE:IBM) has achieved significant commercial progress with its initiatives, with 210 entities spanning diverse industries—including Raytheon Technologies, Sony Group Corporation, Samsung Electronics Co. Ltd., and the U.S. government—currently utilizing IBM's quantum computing programs or engaging in partnerships to enhance quantum computing systems.
International Business Machines Corporation (NYSE:IBM), on December 4, introduced a groundbreaking quantum computing chip and machine, positioning them as foundational elements for significantly larger and faster systems compared to conventional silicon-based computers. IBM's innovative approach involves a novel method of interconnecting chips within machines and subsequently linking these machines. Combined with a new error-correction code, this advancement paves the way for the development of quantum machines by the year 2033. International Business Machines Corporation (NYSE:IBM) intends to leverage this new chip in its enterprise AI platform, Watsonx.
At the end of the third quarter, there were 53 funds tracked by Insider Monkey that held long positions in International Business Machines Corporation (NYSE:IBM) with a total value of $843.12 million.
Similar to Hewlett Packard Enterprise Company (NYSE:HPE), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA), International Business Machines Corporation (NYSE:IBM) is a quantum computing stock that billionaires love.
Hewlett Packard Enterprise Company (NYSE:HPE) is a multinational information technology company headquartered in Spring, Texas, USA, established on November 1, 2015, post the split of the Hewlett-Packard company in Palo Alto, California. In Q3 2023, Hewlett Packard Enterprise Company (NYSE:HPE) achieved notable success in its Intelligent Edge segment, encompassing Internet of Things (IoT), Operational Technology (OT) devices, and edge computing hardware. The Intelligent Edge segment recorded revenues of $1.4 billion, marking a significant 50% increase compared to the corresponding quarter of the previous year, constituting around 20% of HPE's total earnings for the quarter.
On October 20, UBS analyst David Vogt raised the firm’s price target for Hewlett Packard Enterprise Company (NYSE:HPE) to $16, up from the previous target of $15, maintaining a “Neutral” rating on the company’s shares. According to the analyst, the company outlined substantial Total Addressable Market (TAM) expansion, particularly in Networking and Artificial Intelligence, supporting a multi-year revenue growth target of 2%-4% in constant currency terms.
As of the close of Q3 2023, 47 hedge funds tracked by Insider Monkey reported holding stakes in Hewlett Packard Enterprise Company (NYSE:HPE), showing a slight decline from 50 in the previous quarter. The total value of these stakes is approximately $864.4 million.
Honeywell International Inc. (NASDAQ:HON) is a publicly traded American multinational conglomerate corporation. The company’s main business operations are divided into four areas: aerospace, building technologies, performance materials and technologies, and safety and productivity solutions. Quantinuum, the quantum computing venture jointly owned by Honeywell Quantum Solutions and Cambridge Quantum, achieved a historic milestone in hardware by recording the highest quantum volume measurement to date. On September 12, Quantinuum unveiled the Quantum Monte Carlo Integration engine, designed to address problems lacking analytic solutions. This includes challenges in various domains such as pricing financial derivatives, tackling advanced issues in business, energy, and supply chain logistics, among others.
On October 26, 2023, Honeywell International Inc. (NASDAQ:HON) published its Q3 2023 earnings report, demonstrating a robust performance that met or exceeded the company's projections. The report revealed a 3% year-over-year increase in sales and a 2% growth in organic sales, driven by substantial organic sales growth in commercial aviation, defense and space, and process solutions. Earnings per share for the third quarter stood at $2.27, showing marginal change on a reported basis compared to the previous year and a 1% increase year over year on an adjusted basis.
By the end of this year’s third quarter, 60 among the 910 hedge funds polled by Insider Monkey had bought and owned Honeywell International Inc. (NASDAQ:HON)’s shares. John Overdeck and David Siegel’s Two Sigma Advisors is the largest shareholder among these through a $406 million investment
Intel Corporation (NASDAQ:INTC) is a California-based American multinational corporation and technology company with its headquarters in Santa Clara. Recognized as one of the global leaders in semiconductor chip manufacturing based on revenue, Intel has played a pivotal role in advancing the x86 series of instruction sets, widely utilized in personal computers. Intel Corporation (NASDAQ:INTC) also developed Tunnel Falls, its cutting-edge silicon spin qubit chip, marking a significant stride toward the development of a commercial quantum computing system. The company is making this chip available to the quantum research community, aiming to foster advancements and innovation in the field.
Intel Corporation (NASDAQ:INTC) witnessed a notable 9% upswing in its stock value on October 27, propelled by the unveiling of the company's third-quarter financial results that exceeded projections. The remarkable performance can be credited to the triumph of Intel's foundry business, increased enthusiasm for artificial intelligence, and encouraging indications of a rebound in the PC market. Intel Foundry Services (IFS), responsible for manufacturing chips for corporate and government clients, delivered exceptional outcomes, achieving $311 million in revenue, representing a substantial 299% growth compared to the corresponding period in the previous year.
As of the end of Q3 2023, 70 hedge funds tracked by Insider Monkey reported having stakes in Intel Corporation (NASDAQ:INTC), down from 71 in the previous quarter. The consolidated value of these stakes is over $2.13 billion. With over 11 million shares, Millennium Management was the company’s leading stakeholder in Q2.
ClearBridge Investments commented on Intel Corporation (NASDAQ:INTC) in its third quarter 2023 investor letter. Here is what it said:
“We also added to our position in Intel Corporation (NASDAQ:INTC) to take advantage of signs that it continues to make progress on its goal of regaining technology leadership. Intel appears to be executing its technology/product roadmap; the company is on track to ramp up PC and server products over the next 12 months on advanced manufacturing nodes that we believe will be more competitive with chief rival Advanced Micro Devices. We also see green shoots in the PC and server markets, with an increasing possibility of a cyclical recovery in both end markets in 2024.”
Much like Hewlett Packard Enterprise Company (NYSE:HPE), Microsoft Corporation (NASDAQ:MSFT), and NVIDIA Corporation (NASDAQ:NVDA), Intel Corporation (NASDAQ:INTC) is one such stock that billionaires are piling into.