10 Undervalued Quantum Computing Stocks to Buy Now

8. Veeco Instruments Inc. (NASDAQ:VECO)

Number of Hedge Fund Holders: 23

Forward Price to Earnings (P/E) ratio: 13.6

Veeco Instruments Inc. (NASDAQ:VECO) is a developer and manufacturer of process equipment for the semiconductor and thin-film industries, using systems for deposition, etching, and surface preparation. Veeco is integral to quantum computing due to its specialized products, including Molecular Beam Epitaxy (MBE) systems, which help in developing superconductive materials and spintronics.

For Q4 ended December 31, 2024, Veeco Instruments Inc. (NASDAQ:VECO) posted $182 million in revenue, up 5% YoY, though with a minor decrease of 1% sequentially. It also reported $0.41 non-GAAP EPS, exceeding expectations of $0.40 per share, while operational income stood at $27 million. The company’s full-year revenue was $717 million, up 8% from 2023, mainly due to a 13% increase in the semiconductor segment that accounted for 65% of gross revenue.

Additionally, the semiconductor segment took advantage of the high demand for laser annealing and advanced packaging systems. Veeco Instruments Inc. (NASDAQ:VECO) also expects AI revenue to increase 20% in 2025 from 10% in 2024. Although the company’s compound semiconductor and scientific segments had a slight decline, it is expected that opportunities in photonics and solar are to increase in the future.

For Q1 2025, Veeco Instruments Inc. (NASDAQ:VECO) predicts a revenue of $155 to $175 million, with EPS of $0.26 to $0.36 non-GAAP. For now, it is focused on growing its quantum computing and advanced packaging, with special attention on laser annealing systems, key to producing 2nm logic chips.

Moreover, Veeco Instruments Inc. (NASDAQ:VECO) is directing its focus to grow its quantum computing products, such as the development of nanosecond annealing systems. Although Veeco faces hurdles like data storage and a predicted decrease in revenue from China, it is well-positioned for growth in its quantum applications and semiconductor technologies, ranking among the list of cheap stocks to buy.