It’s Time to Buy Back into Quantum Computing Stocks

Quantum computing stocks are surging.

All thanks to news Microsoft just unveiled a new quantum chip – Majorana 1 – which it “expects to speed up the usage of quantum computing to solve industrial-scale problems in the coming years, not decades,” said Microsoft, as noted by Seeking Alpha. “Microsoft said the chip provides the path to create a million-qubit chip that can fit in the palm of a hand.”

In addition, according to CEO Satya Nadella, this is a breakthrough in the advancement of quantum computing.

“Most of us grew up learning there are three main types of matter that matter: solid, liquid, and gas. Today, that changed,” Nadella said. “After a nearly 20-year pursuit, we’ve created an entirely new state of matter, unlocked by a new class of materials, topoconductors, that enable a fundamental leap in computing. It powers Majorana 1, the first quantum processing unit built on a topological core. We believe this breakthrough will allow us to create a truly meaningful quantum computer not in decades, as some have predicted, but in years.”

That’s creating quite a bit of interest in other quantum computing stocks, including:

Rigetti Computing (SYM: RGTI)

Up about 10%, oversold shares of RGTI are starting to push higher on the Microsoft news.

The stock is also moving after B. Riley analysts raised their price target to $15 from $8.50 with a buy rating. The firm believes Microsoft’s “Quantum Ready” service addition to Azure’s Quantum platform and proclamation that 2025 will be “the year to become quantum-ready” could be potentially significant for quantum computing, says Business Insider. Analysts at Alliance Global also raised their price target on RGTI to $15 from $5.50 with a buy rating.

IONQ (SYM: IONQ)

IONQ is also pushing higher with quantum computing names.

Analysts at Needham just raised their price target on IONQ to $54 from $18 a share with a buy rating. The firm cited growing recognition of quantum computing, which could disrupt a big part of a. $1 trillion computing market over the next decade.

Defiance Quantum ETF (SYM: QTUM)

We can also look at the Defiance Quantum ETF (QTUM). From its current price of $85.35, we’d like to see it initially retest $100 a share. With an expense ratio of 0.4%, the QTUM ETF tracks some of the top tech stocks, including Onto Innovation, Teradyne, Marvell Technology, Juniper Networks and Taiwan Semiconductor to name a few of its 72 holdings.

QTUM also pays out a quarterly dividend, which it just paid on February 4. It’s next pay date is March 4 for shareholders of record as of March 3.