The 2 Best Quantum Computing Stocks to Buy in March - The Globe and Mail
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This section contains press releases and other materials from third parties (including paid content). The Globe and Mail has not reviewed this content. Please see disclaimer. The 2 Best Quantum Computing Stocks to Buy in March Motley Fool - 1 hour agoKey PointsShares of pure-play companies IonQ, Rigetti, and D-Wave are down more than 30% so far in 2026.Large-scale use may be many years away, creating a survival risk for these cash-burning companies.By contrast, Alphabet and IBM have profitable core businesses that can fund Quantum R&D indefinitely.10 stocks we like better than Alphabet ›Quantum computing stocks have been in free fall. IonQ is down 34% year to date. Rigetti Computing is down 32% in the same time frame, and D-Wave Quantum is in the same boat.For investors looking for a bargain, it's tempting to buy the dip on these pure-play quantum stocks. I would say they're still far from a bargain, and there are better ways to invest in quantum computing.Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »The pure-play problemImage source: Getty Images.Even after the sell-off, valuations across the sector are detached from reality. IonQ trades at 99 times sales. D-Wave trades at 217 times sales. Rigetti trades at roughly 600 times sales.The revenue underpinning those multiples is pretty tiny. D-Wave generated just $3.7 million in its most recent quarter. IonQ brought in about $40 million. And instead of narrowing their losses as they scale, these companies are burning cash faster.Now, investing in these companies is all about their potential to deliver markedly more revenue in the future. But I think there's way too much growth already baked into these stock prices and a fundamental timeline issue. The fact is, no one knows when -- or if -- this technology will deliver serious returns. It could be much further away than the bulls hope for.That's exactly what a recent MIT report concluded: Large-scale commercial applications likely remain "far off." Morningstar's analysis puts early commercialization at five to 10 years away, while general-use quantum computing -- the kind that would justify multibillion-dollar valuations -- is likely 20 years out. That's a long time to fund operating losses at these burn rates, with no guarantee these companies survive long enough to see it.Two smarter ways to play quantumAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL) offers arguably the strongest quantum research program in the world. Its Willow chip achieved a major error-correction breakthrough, and the company has the resources to fund quantum R&D indefinitely.With annual revenue topping $400 billion, Google Search still growing 17%, and Google Cloud surging 48% to a $70 billion-plus run rate, quantum computing is the cherry on top of an already dominant business.International Business Machines(NYSE: IBM) also gives you a world-class quantum program with an R&D budget that dwarfs those of the pure plays. Meanwhile, while the company isn't as dominant as Alphabet, the core business still generated $67.5 billion in revenue last year, including a decade-high $14.7 billion in free cash flow.With quantum commercialization still years away -- maybe decades -- the smartest approach is owning companies that can fund the research from profitable operations. Alphabet and IBM give you legitimate quantum exposure without the existential risk of pure plays trading at extreme valuations.Should you buy stock in Alphabet right now?Before you buy stock in Alphabet, consider this:The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $519,015!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,086,211!*Now, it’s worth noting Stock Advisor’s total average return is 941% — a market-crushing outperformance compared to 194% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.See the 10 stocks »*Stock Advisor returns as of March 1, 2026. Johnny Rice has no position in any of the stocks mentioned.
The Motley Fool has positions in and recommends Alphabet, International Business Machines, and IonQ.
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