Surging Quantum Computing Stocks in 2024 and Investment Opportunities

In 2024, stocks related to quantum computing have shown remarkable growth, largely driven by recent developments such as Google's launch of the Willow chip. This boom presents a unique opportunity for investors looking to tap into the rapidly expanding quantum computing sector.

Overview of the Quantum Boom: The Defiance Quantum ETF (QTUM) aims to capitalize on this growth by tracking the BlueStar Quantum Computing and Machine Learning Index. This ETF provides investors with the chance to participate in the surge of companies operating across the quantum computing landscape.

The Defiance Quantum ETF has performed impressively, showing a 16.41% increase over the last month, a 29.03% rise over the last six months, and an astounding 54.88% surge in 2024, according to market data.

Investing with the Defiance Quantum ETF

This ETF holds a diverse portfolio of more than 70 global stocks, covering various aspects of the quantum computing value chain. Some of its top holdings include Rigetti Computing, which constitutes 3.79% of the ETF, followed by D-Wave Quantum at 3.27%. Other significant holdings feature IONQ, Alchip Technologies, and Teradyne.

Key Holdings in the ETF

Name	ETF Weight	Shares Held
Rigetti Computing	3.79%	1,571,360
D-Wave Quantum	3.27%	2,814,719
IONQ	2.02%	388,758
Alchip Technologies	1.58%	139,102
Teradyne	1.47%	96,480
Tower Semiconductor	1.47%	236,327
Global Unichip Corp	1.45%	306,991
Palantir Technologies	1.45%	159,931
Taiwan Semiconductor Manufacturing	1.45%	59,591

Source: Defiance ETFs

Quantum computing stocks such as Quantum Computing Inc QUBT, Rigetti Computing RGTI, D-Wave Quantum QBTS, and IONQ IONQ have reached new heights in 2024, particularly post the introduction of Google's Willow chip on Dec. 9, 2024.

The Importance of Quantum Computing

Quantum computers harness the power of qubits, potentially transforming computing by drastically speeding up complex calculations. For instance, the Willow chip from Google demonstrated how certain computations that would take a traditional supercomputer 10 septillion years could be completed in mere minutes.

While such advancements are promising, challenges like high error rates present significant barriers to broader commercial use, leaving uncertainty regarding when quantum technology will become widely applicable.

Jon Najarian, co-founder of Market Rebellion, has pointed out that Rigetti is a noteworthy player in the quantum arena. Furthermore, recent trading activity indicates that the interest in quantum computing stocks has surged, with call options trading volume 2,500% above average.

As of late December 2024, certain analysts have raised concerns regarding future prospects for various quantum stocks, with warnings that the current hype might be overstated. For example, Citron Research compared enthusiasm for buying Rigetti shares to misplaced beliefs about viral internet fame.

Analyst Sentiments on Quantum Stocks

Stocks	Last Three PTs Average	Up/Downside Potential
Rigetti Computing	$6.17	-69.20%
Quantum Computing	$8.63	-52.95%
D-Wave Quantum	$8.00	-17.27%
IONQ	$39.00	-9.68%
IBM	$226.67	3.69%

Source: Benzinga

This evaluation underscores the mixed views analysts hold regarding many quantum computing companies, with IBM being one of the few viewed favorably.

Image via Rawpixel

For investors intrigued by the potential of quantum technologies, now is a pivotal moment to observe this rapidly evolving market.

quantum, stocks, ETF