10 Undervalued Quantum Computing Stocks to Buy Now

Page 9 of 9

1. Seagate Technology Holdings plc (NASDAQ:STX)

Number of Hedge Fund Holders: 52

Forward Price to Earnings (P/E) ratio: 9.94

Seagate Technology Holdings plc (NASDAQ:STX) leads the market in high-capacity data storage, offering HDDs, SSDs, and cloud systems through its Lyve platform. It serves businesses globally across the U.S., Singapore, and the Netherlands, providing storage tech that supports heavy computing for AI, cloud services, and new tech like quantum computing.

In Q2 FY2025 ended December 27, 2024, Seagate made $2.33 billion in revenue, up 50% from last year and 7% from last quarter. The company’s non-GAAP earnings hit $2.03 per share, beating expectations, while operating income jumped 22% to $538 million. Where gross margin reached 35.5%, free cash flow grew to $150 million from the previous quarter’s $27 million. Seagate Technology Holdings plc (NASDAQ:STX) shipped 151 exabytes in total, due to strong cloud customer demand.

Seagate Technology Holdings plc (NASDAQ:STX) also expanded its Mozaic platform using HAMR (Heat-Assisted Magnetic Recording) technology. With drives now sampling at 36TB capacity and more testing in progress, the company is ready to support next-gen systems needing massive data handling. This is crucial for simulation-heavy and data-centric environments supporting quantum computing.

Despite a production obstacle expected to affect Q3 FY2025 revenue by $200 million, the overall outlook is promising. Seagate Technology Holdings plc (NASDAQ:STX) projects $2.1 billion revenue (give or take $150 million) with earnings around $1.70 per share, though supply issues are expected to impact the quarter that ended in March. Seagate continues to play an essential role in data systems that drive quantum computing and AI tech forward, while remaining one of the cheap stocks to buy.

Overall, Seagate Technology Holdings plc (NASDAQ:STX) ranks first on our list of the undervalued quantum computing stocks to buy now. While we acknowledge the potential of STX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than STX but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

Disclosure: None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.

Page 9 of 9