In this article, we will discuss the 10 Best Quantum Computing Stocks to Buy and Hold for 5 Years
Talking about quantum technology (QT), McKinsey believes that the investment has been surging and breakthroughs continue to multiply. In 2024, the QT industry witnessed a shift from growing quantum bits (qubits) to stabilizing qubits, demonstrating a turning point. The firm highlighted that this hints to mission-critical industries that QT can be a safe and reliable component of their technology infrastructure.
Current Trends in the Quantum Technology Industry
According to McKinsey, private and public investors remain increasingly confident that QT start-ups would be able to garner measurable value. In 2024, they invested ~$2.0 billion into QT start-ups worldwide, demonstrating a 50% rise compared to $1.3 billion in 2023. HSBC stated that a trial use of quantum computers to aid bond trading led to promising results, reported Reuters.
Furthermore, Reuters also added that quantum computing focuses on leveraging quantum physics to solve complex problems much faster compared to conventional computers. The supporters believe that it can transform industries, including finance. However, it is early days and has few practical applications.
Amidst such trends, we will now have a look at the 10 Best Quantum Computing Stocks to Buy and Hold for 5 Years
Our Methodology
To list the 10 Best Quantum Computing Stocks to Buy and Hold for 5 Years, we sifted through several online rankings and shortlisted the companies catering to the broader quantum computing industry. Next, we chose the ones popular among hedge funds, as of Q2 2025. The stocks are arranged in ascending order of their hedge fund sentiments.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
10 Best Quantum Computing Stocks to Buy and Hold for 5 Years
10. Arqit Quantum Inc. (NASDAQ:ARQQ)
Number of Hedge Fund Holders: N/A
Arqit Quantum Inc. (NASDAQ:ARQQ) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 16, Arqit Quantum Inc. (NASDAQ:ARQQ) announced that Fabric Networks purchased a full commercial Private Instance (PI) license for Arqit’s NetworkSecure™ platform. This agreement will help Fabric Networks to scale quantum-safe network deployment throughout its customers’ infrastructure. Notably, Fabric Networks infrastructure consists of fibre‑optic networks, private LTE and 5G, pipeline telemetry, broadband, and managed network services.
During H1 2025, Arqit Quantum Inc. (NASDAQ:ARQQ) engaged in or completed demonstration and test activity with 6 telecom network operators and 17 other commercial enterprises and government-related parties. Notably, revenue for H1 2025 was garnered from 6 contracts. Two of the contracts that garnered revenue during the period were multi-year contracts demonstrating annually recurring revenue. Generally, Arqit Quantum Inc. (NASDAQ:ARQQ)’s go-to-market strategy revolves around selling software licenses to network operators, technology vendors, and system integrators, which in turn are sold to their end customers. The company’s stock has a consensus 1-year price target of $52.0.
9. Quantum Computing Inc. (NASDAQ:QUBT)
Number of Hedge Fund Holders: 11
Quantum Computing Inc. (NASDAQ:QUBT) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 18, Max Michaelis, an analyst from Lake Street, initiated a “Buy” rating on the company’s stock. The price target was $24. The analyst’s rating is backed by a combination of factors demonstrating Quantum Computing Inc. (NASDAQ:QUBT)’s potential in the burgeoning quantum computing market. As per the analyst, the company remains strategically placed with a first-mover advantage, mainly in the field of photonics and Thin Film Lithium Niobate (TFLN) technology, which is expected to become a key component in future semiconductor fabrication.
The analyst believes that this advantage is supported by Quantum Computing Inc. (NASDAQ:QUBT)’s U.S.-based foundry, which is well-placed to capitalize on the constrained supply chain and growing demand in sectors including telecom and datacom. Furthermore, Quantum Computing Inc. (NASDAQ:QUBT)’s diverse approach, including the development of proprietary photonic chips and quantum computing solutions, places it well for future growth, added Michaelis.
8. Rigetti Computing, Inc. (NASDAQ:RGTI)
Number of Hedge Fund Holders: 17
Rigetti Computing, Inc. (NASDAQ:RGTI) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 30, Rigetti Computing, Inc. (NASDAQ:RGTI) announced that it secured purchase orders of ~$5.7 million for two 9-qubit Novera™ quantum computing systems. Notably, both systems are upgradeable, enabling the customers to increase the system qubit count for more complex computations and research. Furthermore, Rigetti Computing, Inc. (NASDAQ:RGTI) stated that delivery for both systems is projected in H1 2026.
Rigetti Computing, Inc. (NASDAQ:RGTI) stated that its industry-leading proprietary chiplet approach to scaling and robust financial position provides confidence in hitting the end-of-year technology goals. With the general availability of Cepheus-1-36Q, Rigetti Computing, Inc. (NASDAQ:RGTI) continued recent improvements in performance, obtaining a 2x reduction in two-qubit gate error rate from the previous Ankaa™-3 system, and posting the median two-qubit gate fidelity of 99.5%. The company’s total revenues for the 3 months ended June 30, 2025 came in at $1.8 million.
7. D-Wave Quantum Inc. (NYSE:QBTS)
Number of Hedge Fund Holders: 24
D-Wave Quantum Inc. (NYSE:QBTS) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 30, D-Wave Quantum Inc. (NYSE:QBTS) and North Wales Police (NWP) announced the completion of a joint proof-of-technology project leveraging a hybrid-quantum application to optimize the placement of police vehicles for emergency response. The hybrid-quantum technology offered a faster, more accurate, and more efficient solution as compared to the classical methods alone, giving NWP the ability to decrease the average incident response time by ~50%.
In Q2 2025, D-Wave Quantum Inc. (NYSE:QBTS) demonstrated strong performance throughout a multitude of technical and business metrics. D-Wave Quantum Inc. (NYSE:QBTS) brought to market the sixth-generation quantum computer, signed the memorandum of understanding associated with the acquisition of an on-premises system in South Korea, completed physical assembly of the announced system at Davidson Technologies, introduced the collection of developer tools to advance quantum AI and machine learning innovation, and closed Q2 2025 with a record $819 million in cash.
6. IonQ, Inc. (NYSE:IONQ)
Number of Hedge Fund Holders: 30
IonQ, Inc. (NYSE:IONQ) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 25, the company announced it achieved a record algorithmic qubit score of #AQ 64. This was achieved on an IonQ Tempo system, 3 months ahead of schedule. As a result, IonQ, Inc. (NYSE:IONQ) is the only company to reach #AQ 64, setting a new standard for quantum systems. To give a brief background, #AQ benchmarks measure the ability of a quantum system to run quantum algorithms of increasing complexity and size while maintaining high fidelity.
Since the company achieved #AQ 64, it demonstrates that IonQ, Inc. (NYSE:IONQ)’s quantum systems can address a set of increasingly complex real-world applications. These include energy grid distribution improvements, computational drug discovery, supply chain optimization, engineering simulation modeling, and enhanced fraud and anomaly detection. In Q2 2025, IonQ, Inc. (NYSE:IONQ) surpassed the top end of guidance for revenue by 15% and cemented its balance sheet through the largest equity investment from a single institution in the quantum industry. The company recognized revenue of $20.7 million for Q2 2025.
5. International Business Machines Corporation (NYSE:IBM)
Number of Hedge Fund Holders: 63
International Business Machines Corporation (NYSE:IBM) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On October 1, International Business Machines Corporation (NYSE:IBM) and AMD announced a collaboration focused on delivering advanced AI infrastructure to Zyphra, which is an open-source AI research and product company. Under the multi-year agreement between International Business Machines Corporation (NYSE:IBM) and Zyphra, the former is positioned to deliver a large cluster of AMD Instinct™ MI300X GPUs on IBM Cloud for Zyphra to use for training frontier multimodal foundation models.
Notably, the collaboration is anticipated to deliver among the largest advanced generative AI training capabilities to date, powered by an AMD stack running on IBM Cloud. Elsewhere, at the Q2 2025 earnings call, International Business Machines Corporation (NYSE:IBM) stated that, in Quantum, it achieved a major milestone with the deployment of IBM Quantum System Two in Japan in partnership with RIKEN. This highlights the first installation outside the US, strengthening its commitment to global leadership in quantum computing. Notably, IBM Quantum® is a full-stack quantum computing provider.
4. Honeywell International Inc. (NASDAQ:HON)
Number of Hedge Fund Holders: 67
Honeywell International Inc. (NASDAQ:HON) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 17, the U.S. Department of Energy’s Office of Technology Commercialization (OTC) announced an expansion of Quantum-in-Space Collaboration with 3 new signatories: IonQ, Honeywell International Inc. (NASDAQ:HON), and the Electric Power Board of Chattanooga (EPB). Notably, the defense and space industry continues to rapidly evolve with high priorities on security and resiliency by governments as well as other critical industries.
Furthermore, the Collaboration would leverage Honeywell International Inc. (NASDAQ:HON)’s quantum optical payload technology, expertise in satellite communications, and onboard quantum computing to provide quantum-secured communications and quantum sensing.
Earlier, Honeywell International Inc. (NASDAQ:HON) announced a ~$600 million equity capital raise for Quantinuum, which is the developer of the world’s highest-performing quantum computer. This was done at the pre-money equity valuation of $10 billion. The capital raise is expected to support Quantinuum’s advancement of quantum computing at scale.
Madison Investments, an investment advisor, released its Q1 2025 investor letter. Here is what the fund said:
“This quarter we want to highlight Honeywell International Inc. (NASDAQ:HON) as a high-quality relative yield investment in the Industrial sector. HON is a premier industrial company with leading positions in Aerospace (40% of revenues), Industrial Automation (26%), Building Automation (17%) and Safety and Productivity Solutions (17%). A common theme across these end markets is that HON embeds its products into the operations of its customers, which generates long-term recurring revenue from aftermarket products/services. We believe HON has a sustainable competitive advantage due to its scale, high customer switching costs, intangible assets, and long history of innovation. Many HON products are a low percentage of its customers’ total costs, and these products get designed into products and operations, which provide a long-term source of consistent revenue.
HON recently announced plans to break the company into three separate entities by the end of 2026, which we believe will create shareholder value. The three stand alone companies will be Honeywell Aerospace, Honeywell Automation, and Advanced Materials. These businesses are likely to have better focus, different levels of capital intensity, and different growth profiles as stand-alone entities. Activist investor Elliott Management also owns a $5 billion stake, which is the largest activist investment the firm has made in its history. Valuation appears attractive at 18x forward expected earnings, which is a less than market multiple…” (Click here to read the full text)
3. Alphabet Inc. (NASDAQ:GOOGL)
Number of Hedge Fund Holders: 219
Alphabet Inc. (NASDAQ:GOOGL) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On October 2, Morgan Stanley lifted the price target on the company’s stock to $270 from $210, while keeping an “Overweight” rating, as reported by The Fly. As per the firm, Alphabet Inc. (NASDAQ:GOOGL)’s shares have moved from doubt to leadership in the AI race. The analyst believes that as the pace of innovation ramped up, the DOJ remedy was even more benign than bulls expected. Furthermore, the analyst added that amidst growing positive GenAI adoption signals throughout multiple business lines, the tone of investor discussions has quickly shifted.
The firm believes that Alphabet Inc. (NASDAQ:GOOGL) has become an AI Winner, which it thinks is right. Moving forward, the earnings revisions will be crucial. The firm will be focused on upward revisions, mainly in Search and GCP, hinting at faster search as well as cloud growth from Gen AI. Willow, Alphabet Inc. (NASDAQ:GOOGL)’s latest quantum chip, has state-of-the-art performance throughout a number of metrics, enabling 2 major achievements. First, Willow is capable of reducing errors exponentially as it scales up using more qubits. Second, Willow performed a standard benchmark computation in under 5 minutes, which would have taken one of today’s fastest supercomputers 10 septillion years.
SaltLight Capital, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“To illustrate our approach to navigating these uncertainties, we turn to our recent investment in Alphabet Inc. (NASDAQ:GOOGL), which exemplifies balancing innovation risks with established strengths.
Innovator’s Dilemma: Google is grappling with an Innovator’s Dilemma as it protects its $200 billion search business from a significant technological shift. To put it plainly, Google Search’s primary purpose is to act as a ‘match-maker’, guiding users to the best source for their query on the open web. However, artificial intelligence is changing this role, with AI handling much of the searching, synthesis, and answering for the user, reducing the need to visit destination websites to gather information. A natural tension is emerging.
Humans naturally gravitate towards the path of least resistance, increasingly depending on AI to undertake cognitive tasks for them. This development poses challenges for content providers and for Google itself, which derives advertising revenue from these interactions…” (Click here to read the full text)
2. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 235
NVIDIA Corporation (NASDAQ:NVDA) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On September 30, Citi’s Atif Malik lifted the price target on the company’s stock from $200 to $210. As per the analyst, NVIDIA Corporation (NASDAQ:NVDA) is poised to capitalize on the surge in AI infrastructure spending over the upcoming few years. Notably, Citi raised its outlook for AI-related infrastructure spending by the well-established tech players. As the undisputed AI chip king, NVIDIA Corporation (NASDAQ:NVDA) is expected to likely sell more GPUs and related hardware as AI infrastructure spending ramps up, opines Malik.
The analyst is incrementally positive on NVIDIA Corporation (NASDAQ:NVDA)’s roadmap and competitive positioning post Rubin CPX GPU launch. Notably, NVIDIA Rubin CPX is projected to be available at the end of 2026. Elsewhere, NVIDIA Corporation (NASDAQ:NVDA) believes that NVIDIA CUDA-X libraries remain the backbone of quantum research. From faster decoding of quantum errors to designing larger systems of qubits, researchers have been using GPU-accelerated tools in order to expand classical computation and bring useful quantum applications closer to reality.
Chautauqua Capital Management, a division of Baird Asset Management, is a boutique investment firm that released its Q2 2025 investor letter for the “Baird Chautauqua International and Global Growth Fund”. Here is what the fund said:
“NVIDIA Corporation (NASDAQ:NVDA) reported first quarter results that were extremely solid. The company took a write-down on China-specific datacenter products and flushed out any future China contributions from their guidance, following the new export restrictions introduced in April. Demand commentary ex China was extremely encouraging—Nvidia is outgrowing expectations despite supply constraints and outgrowing competing ASIC products by a large margin. We have been underweight Nvidia relative to the benchmark, which was up 46% in the quarter, given our short-to medium-term concerns that the feverish AI datacenter build may be resulting in overcapacity, which has not come to bear.”
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 294
Microsoft Corporation (NASDAQ:MSFT) is one of the Best Quantum Computing Stocks to Buy and Hold for 5 Years. On October 1, CNBC, while quoting Microsoft Corporation (NASDAQ:MSFT), reported that the tech giant will stop promoting a consumer subscription for AI services and introduced a bundle blending AI features with traditional productivity apps. Just like it was with Copilot Pro and consumer Microsoft 365 subscriptions, the new offering allows conversations with Copilot in Microsoft’s Office apps like Word, Excel, and PowerPoint, reported CNBC.
Microsoft Corporation (NASDAQ:MSFT), in its Q4 2025 earnings call, highlighted that the next big accelerator in the cloud would be Quantum. The company also announced the world’s first operational deployment of a Level 2 Quantum computer in partnership with Atom Computing. Microsoft Corporation (NASDAQ:MSFT) also announced the opening of a new quantum research center at the University of Maryland’s Discovery District.
The Microsoft Quantum compute platform has been designed to detect and correct errors during computation in multiple types of quantum hardware in order to make sure that it provides the customers and partners with the most capable quantum computers available. Notably, the architecture helps in bringing together high-performance computing and AI for speed, and quantum technologies for accuracy, and it would continue to improve as the field evolves and as new capabilities begin to emerge. Columbia Threadneedle Investments, an investment management company, released its Q2 2025 investor letter. Here is what the fund said:
“Tech titan Microsoft Corporation (NASDAQ:MSFT) reported quarterly results that surprised to the upside, especially as compared with results reported by cloud-computing peers, and its shares surged over 30% during the period. Also during the quarter, the company unveiled several AI improvements that were well-received by the developer community, especially due to its continued partnership with AI pioneer OpenAI. With a strong presence across all layers of the compute stack, including applications, platform and infrastructure, the largest software company in the world is well positioned to capitalize on a number of compelling trends related to AI, cloud computing and enterprise productivity.”
While we acknowledge the potential of MSFT to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than MSFT and that has 100x upside potential, check out our report about this cheapest AI stock.
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