Seeing how fast AI and anti-obesity drug stocks took off vs. the S&P 500, investors aren't wasting any time jumping into quantum computing plays.
Seven stocks in the Defiance Quantum ETF — including Onto Innovation, MicroStrategy and Micron Technology — have all soared 6% or more already this year, says an Investor's Business Daily analysis of data from S&P Global Market Intelligence and MarketSurge.
And that's on top of some already impressive gains over the past 12 months. These same seven stocks are up an average of 82.5% from January 2024. That easily tops the S&P 500's roughly 20% rise in that time. And that's despite cautious statements about quantum computing from Nvidia CEO Jensen Huang this year.
"Jensen Huang's comments are unlikely to stall progress in the quantum computing landscape, as research and development will continue to be driven by substantial public and private investments," said Joe Tigay, portfolio manager of the Rational Equity Armor Fund. "However, the focus may shift towards near-term applications in areas such as AI enhancement, drug discovery, materials science and financial modeling, where existing quantum computers already demonstrate potential advantages."
Biggest Quantum Computing Winners
The Defiance Quantum ETF holds more than 60 stocks. And each stock's exposure to quantum computing varies.
The top winner this year is Onto Innovation. Shares are up a blistering 21.7% this year. That gives the stock an RS Rating of 45. But the maker of semiconductor inspection systems is also putting up strong earnings growth. The company is seen making $6.65 a share this year, up nearly 30% from 2024.
Another big winner is a tech company that always seems to get caught up in every tech boom: MicroStrategy. The dot-com-turned-bitcoin firm is also in the quantum computing ETF. Its shares are up more than 18% just this year. And they're up more than 420% in the past 12 months. The stock now has a perfect 99 RS Rating, despite being expected to lose money in 2024.
Some of the quantum plays are a little suspect, too. Shares of Micron Technology are up nearly 16% this year. Too bad a vast majority of its business is in plain-old memory chips.
But in a market frenzy, investors apparently don't have time for such concerns.
Top Quantum Computing Stocks This Year
Based on the Defiance Quantum ETF.
| Company | 12-month change | YTD change |
|---|---|---|
| Onto Innovation | 47.7% | 21.7% |
| MicroStrategy | 421.8% | 18.2% |
| Micron Technology | 17.6% | 15.5% |
| KLA | 28.2% | 11.2% |
| Applied Materials | 16.2% | 6.7% |
| Teradyne | 32.0% | 6.5% |
| MKS Instruments | 14.0% | 6.3% |
