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Alphabet (GOOGL) created a market frenzy in December 2024 when it unveiled its Willow quantum computing chip. Willow demonstrated how a quantum computer could solve a complex mathematical problem in just minutes instead of septillions of years. Investors immediately began pouring into quantum computing startups like IonQ (IONQ) and Rigetti Computing (RGTI), driving their shares to record highs.
Although quantum computing is closer to being a commercial reality than ever before, there are limited opportunities to directly invest in it. Besides the most popular mega-cap tech stocks and a few popular startups, these five companies may be under-the-radar. Some are pure-plays on quantum, while others dabble in it. Let’s dive into the list.
Quantum Computing Stock #1: FormFactor
California-based FormFactor (FORM) is valued at $3 billion by market capitalization, with a primary focus on test and measurement technologies for integrated circuits. The lesser-known company is involved in quantum computing through cryogenic systems, designed to help supply the extreme-cold environments that quantum computers need to function.
The stock hasn’t been caught up in the recent quantum computing frenzy, with shares down just over 16% in the past 52 weeks. The stock is down another 18% in the year to date.
Analysts are reasonably optimistic that a turnaround is in store for FormFactor, with a consensus “Moderate Buy” rating and an average price target of $53.75, up 57% from its current share price.
Quantum Computing Stock #2: Coherent
Pennsylvania-based Coherent (COHR) is another lesser-known tech stock that has its hands in quantum computing. The company, valued at $15.5 billion, is involved in making lasers, optics, and other related products. Some of these lasers have specific uses in quantum computing, such as for atom trapping and photon entanglement.
Coherent shares are up 46% over the past 52 weeks but are underperforming in the year to date, down more than 3%.
Analysts are fairly warm on COHR stock, assigning it a consensus “Moderate Buy” rating. An average price target of $112.38 is 17% higher than its current. Its Street-high price target of $136 implies it could gain as much as 40% from here.
Quantum Computing Stock #3: Honeywell
North Carolina-based Honeywell (HON) is no small company, with a market cap above $136 billion. The company services multiple industries such as aerospace and defense and automotive. Some of these products include engine control systems and auxiliary power systems. In terms of quantum computing, Honeywell operates under its subsidiary Quantinuum to produce quantum computers and other associated hardware and software.
Despite its involvement with quantum computing, shares of Honeywell stock are up 5% over the past 52 weeks and down 9% over the year to date.
Analysts are confident that things can turn around, with a consensus “Moderate Buy” rating. Their average price target of $246.20 represents roughly 25% upside potential, while a Street-high price target of $300 implies shares can gain 50% from here. One thing for investors to watch is the pending split up of Honeywell and what that will mean for its Quantinuum subsidiary.
Quantum Computing Stock #4: Marvell Technologies
Delaware-based Marvell Technologies (MRVL) is also by no means a small company with a market cap above $100 billion. It develops and produces semiconductors, including AI chips, and also supplies storage and networking solutions. Marvell has a more tangential role in quantum computing, focusing on creating high-performance hardware that would support the next-gen technology.
MRVL stock has outperformed, and shares are up 60% in the last 52 weeks. The stock has slowed down in recent weeks, however, with shares up just 1%.
One positive about Marvell is that analysts are super on board. They have a “Strong Buy” consensus rating on the stock and an average price target of $131.40, up 20% from its current price. Its Street-high price target of $188 implies shares can gain 71% from here.
Quantum Computing Stock #5: SAP
Germany-based SAP (SAP) is a multinational corporation specializing in enterprise resource planning, or ERP, software for businesses. This software aids businesses with tasks like human resources, finance, and procurement. SAP is a member of the Quantum Technology and Application Consortium, and recently said that it is exploring various ways that quantum computing could fit into ERP software. The company said it is committed to delivering cutting-edge technology to its clients in the best way possible. SAP is currently valued at $343 billion by market cap.
SAP stock is up 13.75% in the year to date and up more than 54% over the past 52 weeks.
Analysts have a “Strong Buy” rating on shares and a price target of $290. Based on current prices, this target implies just 3.5% upside potential.
