This article will discuss the 10 undervalued quantum computing stocks to buy now.
Quantum computing is turning into an essential component of the upcoming technological revolution. It is resolving problems all around in sectors spanning security, finance, medicine, and AI. In comparison to regular computers, quantum systems use qubits that work in multiple states at once, which massively boosts processing power. This does show advancements in the field of science, and as such, it is encouraging new markets. PwC reports that quantum tech is making waves in research, operations, and infrastructure, with specific attention on optimization, system simulation, and modeling risks.
According to ResearchAndMarkets, while the quantum industry reached $1.9 billion in 2024, it is expected to hit $7.5 billion by 2030, with a CAGR of 28.7%. Forbes stated that this strong growth comes from institutional support, public-private teamwork, and hardware breakthroughs. Moreover, venture capital invested $1.5 billion into 50 quantum startups last year, almost twice the amount in 2023. The Forbes Technology Council adds that this demonstrates that investors are putting more trust in the quantum sector. Thus, it has the potential to reshape not just the IT sector but global markets too, from portfolio management to trading algorithms, by cutting computation time and risks.
In response to this technology, the stock market has been skeptical, as it is uncertain when quantum computing will go mainstream. However, recent advances in error reduction, logical qubit formation, and hybrid quantum-classical models have boosted optimism among investors. These hybrid approaches are already helping with logistics, artificial intelligence, and materials research. Forbes claims that this shift is a complete redefinition of tech investing, with quantum moving from an accessory to a necessity in the tech sector.
In contrast, in the financial sector, the industry is getting attention despite being relatively new and in development. IDTechEx predicts it can reach $10 billion worth of value in two decades, driven by the active advancements of quantum startups. With over 50 of these startups turning profitable in just four years, companies are now rapidly adopting the technology, with a rise in demand for quantum programs. Meanwhile, an IDC report in April showed PC shipments grew 4.9% in Q1 2025, unaffected by the rising tariffs. Furthermore, even governments all around the globe are investing in this sector, led by America, Germany, China, and Britain. The UN even declared 2025 the International Year of Quantum Science and Technology.
Looking ahead, the technological progress keeps investors hooked with new materials like niobium. When paired with surface encapsulation methods, it has stretched coherence times to 600 microseconds, making qubits perform better. In addition, better chip designs and error correction are helping quantum systems move from labs to real applications. These improvements should cut costs and boost reliability, bringing quantum’s theoretical potential into practical use.
With this in mind, let’s now look into the 10 Undervalued Quantum Computing Stocks to Buy Now that could gain from the sector’s transformative growth.
A close up of an engineer typing at a quantum computing station in a modern office space.
Our Methodology
To curate our list of the 10 Undervalued Quantum Computing Stocks to Buy Now, we relied on the Finviz screener to find the biggest Quantum Computing companies. We narrowed down these companies by choosing ones that have their forward price-to-earnings multiple less than 15, as of the time of writing this article. Next, we ranked the shortlisted stocks based on the hedge fund sentiment surrounding each stock, as per Insider Monkey’s Q4 2024 database. The 10 Undervalued Quantum Computing Stocks to Buy Now are listed in ascending order based on the number of hedge fund holders having stakes in the respective stocks.
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. TELUS International (Cda) Inc. (NYSE:TIXT)
Number of Hedge Fund Holders: 12
Forward Price to Earnings (P/E) ratio: 7.85
TELUS International (Cda) Inc. (NYSE:TIXT) provides digital customer experience and IT solutions in North America, Asia-Pacific, Central America, Europe, and Africa. It offers cloud and automation tech, AI data services, and trust and safety tools. The company helps industries like fintech, eCommerce, telecom, travel, and healthcare, with products such as the Fuel iX platform for enterprise GenAI management.
For Q4 ended December 31, 2024, TELUS International (Cda) Inc. (NYSE:TIXT) earned revenue of $691 million, an increase of 5% from last year. But the company’s full-year 2024 revenue was $2.7 billion, down 2% because of weaker demand in e-commerce and fintech. Its Q4 adjusted EBITDA margin reached 14.9%, which is an improvement from the previous quarters due to $30 million worth of cost-cutting. Looking ahead, the company expects about 2% organic growth and $400 million in adjusted EBITDA in 2025, keeping capital spending at 4-5% of revenue. The company expects adjusted earnings per share of $0.32 and cash taxes between $50-60 million.
Although there was a drop in yearly revenue, client trust and relationships stayed strong. TELUS International (Cda) Inc. (NYSE:TIXT) grew its business with the addition of 55 new ones in 2024. Moreover, African operations had a rapid growth, with an 800% workforce increase and over 400% growth in both revenue and profit. In addition, the company’s AI data solutions made progress through new partnerships in self-driving transportation and AI research. Thus, TELUS saw customer satisfaction among its top 55 accounts improving by 20% in Q4.
Looking ahead, a major role is to be played by Photonic Inc. to support the quantum future in Canada. Through this partnership, TELUS International (Cda) Inc. (NYSE:TIXT) is to provide access to a 30-km fiber-optic network, helping Photonic test advanced quantum communication systems, including quantum encryption and entangled networks. This partnership makes TELUS an important player in creating secure next-gen digital infrastructure in Canada, while also ranking among the list of cheap stocks to buy.
9. Endava plc (NYSE:DAVA)
Number of Hedge Fund Holders: 17
Forward Price to Earnings (P/E) ratio: 10.55
Endava plc (NYSE:DAVA) is a renowned tech company, providing services including digital speed-up, engineering, and modern managed services in North America, Europe, and the UK. It works with many industries like finance, healthcare, automotive, and telecom. The company’s quantum division, Dava.X Quantum, is producing hybrid solutions that blend traditional and quantum computing to solve difficult business challenges. The company works with quantum leaders worldwide to create custom solutions that solve real problems.
For Q2 FY2025 ended December 31, 2024, Endava plc (NYSE:DAVA) posted a revenue of $248.4 million, a 6.6% rise from last year (9.1% in constant currency). The company’s adjusted profit before tax was $27.7 million with an 11.2% margin, while adjusted earnings per share were at $0.38, exceeding expectations. The top 10 clients of Endava plc (NYSE:DAVA) made up 36% of revenue, with average spending up 13% year over year to $9 million.
Meanwhile, the company’s business in North America jumped 32.7%, thanks to the acquisition of GalaxE. The UK and Europe saw small growth, while other regions fell 43.5% due to economic slowdown. Additionally, Banking & Capital Markets did well with 43.6% growth, though Payments and TMT struggled. Moreover, the company’s Healthcare portfolio was able to grow due to GalaxE’s contribution. Furthermore, Endava just started its first-ever share buyback program that is worth $100 million.
Endava plc (NYSE:DAVA)’s Dava.X Quantum plays a key role in the company’s future plans, helping businesses prepare for quantum computing with better security and hybrid applications. As such, for Q3 FY2025, the company expects revenue between $251-254 million, with earnings of $0.39-0.41 per share. For the full year, it is looking at $1.01-1.02 billion in revenue and earnings of $1.52-1.56 per share. However, the company’s weakness in the UK and instability in the global market are posing challenges.
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.
7. Photronics, Inc. (NASDAQ:PLAB)
Number of Hedge Fund Holders: 23
Forward Price to Earnings (P/E) ratio: 9.34
Photronics, Inc. (NASDAQ:PLAB) provides photomask products used in the manufacturing of semiconductors and flat-panel displays (FPD) worldwide. The company transfers its photomasks circuit designs to semiconductor wafers and display substrates. Photronics doesn’t produce chips, but it helps the quantum computing field with precise photomask solutions for quantum processor production. The company’s business spans across the U.S., Taiwan, China, Korea, and Europe, serving chip designers, foundries, and electronics manufacturers globally.
In Q1 ended February 2, 2025, Photronics, Inc. (NASDAQ:PLAB) made $212 million in revenue, meeting analysts’ expectations. It made $0.52 in diluted earnings per share, beating its guidance, thanks to a solid 25% operating margin. Moreover, the company also made $78 million in operating cash flow—about 37% of revenue—and had $642 million in cash with just $3 million in debt. The revenue for its IC segment dropped 6% from last quarter to $154 million, with mainstream IC demand falling 9% due to industry slowdown. However, the company’s high-end IC products gained ground, making up 39% of total IC sales, which is higher than last year’s 36% share. Additionally, FPD revenue held steady at $58 million compared to both last quarter and last year.
Moreover, Photronics, Inc. (NASDAQ:PLAB) hit a milestone by getting its first orders for G8.6 AMOLED displays, which strengthens its position in cutting-edge display tech. The company’s management keeps pushing to expand its high-end IC mix, especially in the 14-22nm range, to boost selling prices and offset weakness in automotive and industrial markets.
For Q2 2025, Photronics, Inc. (NASDAQ:PLAB) predicts revenue between $208-$216 million, with EPS of $0.44-$0.50 per share and operating margins of 23%-25%. Although the company is cautious about economic and industry instability, its long-term growth should come from AI adoption, quantum processor demand, and its $200 million capital expenditure focused on U.S. expansion and high-value segments. With a forward P/E of 9.34, PLAB is placed in the list of the cheapest stocks to buy now.
6. ACM Research, Inc. (NASDAQ:ACMR)
Number of Hedge Fund Holders: 23
Forward Price to Earnings (P/E) ratio: 9.33
ACM Research, Inc. (NASDAQ:ACMR) makes and sells equipment for semiconductor manufacturing and advanced packaging worldwide. The company focuses especially on wet cleaning tools, advanced packaging gear, dry processing systems, and semi-critical cleaning tech. Its products include names like SAPS, TEBO, and ULTRA C, which handle both front-end and back-end chip fabrication. ACM’s Research segment is growing its presence in the U.S. and China, while developing next-gen wafer-level packaging and dry processing platforms. To grow in the quantum computing sector, it has partnered with companies in quantum computing and keeps delivering tools for cutting-edge chip tech, also making it to our list of cheap stocks to buy now.
In Q4 ended December 31, 2024, ACM Research, Inc. (NASDAQ:ACMR) made $223.5 million in revenue, an increase of 31.2% from last year. While its full-year 2024 revenue jumped 40.2% to $782.1 million, its quarterly EPS hit $0.56, beating the expected $0.31. Shipments for the quarter shot up 88% year-over-year to $264 million, bringing its full-year shipments to $973 million. The company’s Q4 gross margin was 49.8%, with a full-year figure of 50.4%, and finished 2024 with $259.1 million in net cash, a rise of $198.5 million in Q3.
The growth of ACM Research, Inc. (NASDAQ:ACMR) came mostly from strong sales in single-wafer and semi-critical cleaning tools, bringing in $155.2 million in Q4 and $579 million for the whole year. On the other hand, sales from the company’s ECP, furnace, and other technologies grew nearly 61% in Q4.
Even with U.S. export restrictions, management thinks the impact won’t be too bad because of the company’s local supply chains. ACM Research, Inc.’s (NASDAQ:ACMR) new facilities in Lingang and Oregon will help it grow its capacity, and it expects 2025 revenue between $850-950 million, with gross margin guidance of 42-48%.
5. OneSpan Inc. (NASDAQ:OSPN)
Number of Hedge Fund Holders: 25
Forward Price to Earnings (P/E) ratio: 11.21
OneSpan Inc. (NASDAQ:OSPN) is a digital security solutions provider, with services spanning authentication, identity verification, e-signature, and digital workflow products. The company’s clientele is spread across industries like financial services, healthcare, and government. The services provided by OneSpan, including mobile security and multifactor authentication, help secure digital transactions and build customer satisfaction worldwide.
In Q4 ended December 31, 2024, OneSpan Inc. (NASDAQ:OSPN) posted EPS of $0.24, falling short of the expected $0.27. The revenue stood at $61.2 million, a decline of 3% YoY, though annual recurring revenue was $168 million, an increase of 8.5%. The company’s full-year revenue increased 3% to $243.2 million, and Q4 adjusted EDIBTA surged 32.4% from 17.7% in the last year. Moreover, its Security Solutions had a decline in revenue for Q4, although ARR rose 6%, followed by a subscription revenue increase of 49%. Meanwhile, the Digital Agreements segment had an 8% increase due to a 15% increase in subscription revenue.
OneSpan Inc. (NASDAQ:OSPN) is advancing its higher-margin software model, focusing on the growth of its security software and channel partnerships. In addition, the company is looking into M&A options for advancing its digital identity solutions. Looking forward to 2025, the company predicts its revenue to be around $245 to $251 million, with ARR increasing 14-18%, while adjusted EDIBTA stood at $72-$76 million.
The company is directed toward resolving security issues revolving around possible threats regarding quantum computing. OneSpan Inc. (NASDAQ:OSPN) has launched quantum-resistant encryption to its Authentication Suite Server SDK to strengthen its core engine against quantum computing risks. Although the quantum computers breaking current encryption algorithms is still theoretical, the company’s approach to using post-quantum encryption makes it stand out in the evolving tech sector, while ranking among cheap stocks to buy now.
4. Teradata Corporation (NYSE:TDC)
Number of Hedge Fund Holders: 26
Forward Price to Earnings (P/E) ratio: 9.81
Teradata Corporation (NYSE:TDC) provides a connected hybrid cloud analytics platform, helping businesses leverage their data for large-scale analysis. With two main segments, Product Sales and Consulting Services, the company offers solutions like the Teradata Vantage platform that handles data both in-cloud and on-site. It also serves industries such as financial services, healthcare, and telecom through direct sales and partners.
For Q4 ended December 31, 2024, Teradata Corporation (NYSE:TDC) posted earnings of $0.53 per share, beating the expected $0.44. Its Cloud Annual Recurring Revenue grew 18% year-over-year in constant currency to $609 million, though total ARR dropped 4%. The company continues shifting toward a hybrid AI platform for enterprise use, with both cloud and on-premises options to meet growing AI demands, including quantum computing applications. Teradata has been developing various Generative AI proof-of-concepts to strengthen its position in this fast-changing area.
For full-year 2025, Teradata Corporation (NYSE:TDC) predicts a 14% to 18% growth in cloud ARR, though total revenue will likely fall 4%-6% year-over-year. The company expects EPS between $2.15-$2.25 and plans to give back over 50% of its free cash flow (estimated at $250-$280 million) to shareholders through buybacks.
In the future, upcoming product innovations include the Enterprise Vector Store, which helps in the management of enterprise-scale vector data, and new on-premises AI features. Moreover, working with NVIDIA on GPU-accelerated AI workloads and integrating with AWS, Google Cloud, and Microsoft Fabric strengthens the company’s position in AI and hybrid cloud solutions. As AI adoption is increasing and quantum computing is becoming crucial to businesses, Teradata Corporation (NYSE:TDC) stays strong in meeting growing needs for data management and AI insights, while also being one of the cheap stocks to buy.
3. NetApp, Inc. (NASDAQ:NTAP)
Number of Hedge Fund Holders: 41
Forward Price to Earnings (P/E) ratio: 11.84
NetApp, Inc. (NASDAQ:NTAP) offers data management options for both hybrid and public clouds. With its two main segments, Hybrid Cloud and Public Cloud, the company provides storage infrastructure and data services to industries like energy, healthcare, manufacturing, and tech. Its main products include software like NetApp ONTAP, SnapMirror, and SnapLock, plus cloud solutions, such as NetApp Cloud Volumes ONTAP and Azure NetApp Files.
In Q3 FY2025, NetApp, Inc. (NASDAQ:NTAP) posted revenue that grew 2% year-over-year to $1.64 billion. The company’s operating margin was at 30%, beating expectations, while EPS reached $1.91, matching predictions. Furthermore, the all-flash array business jumped 10% to a $3.8 billion annual run rate, while public cloud revenue increased 15%, with cloud storage services surging over 40%. Meanwhile, the company’s Storage-as-a-Service (Keystone) offering shot up nearly 60%.
NetApp has been making progress upgrading products, including refreshing high-performance AFF A-Series arrays, launching new entry-level ASA systems, and enhancing its StorageGRID object storage. NetApp, Inc. (NASDAQ:NTAP) is selling its Spot by NetApp business to Flexera, with the deal expected to close in early March 2025. Additionally, public cloud gross margins improved from 66% to 76%, while the company returned over $300 million to stockholders through dividends and buybacks.
For FY2025, NetApp, Inc. (NASDAQ:NTAP) expects revenue between $6.49-$6.64 billion, representing 5% growth at the midpoint. It projects EPS growth of 12% to $7.17-$7.27 per share, while Q4 product gross margin is expected to land around 56%. Despite strong financial performance, the company faces sales challenges and a slowdown in European markets, especially France and Germany. Still, its AI business looks promising, with over 100 AI infrastructure wins in Q3 and growing enterprise adoption, positioning NetApp as a foundation for AI-as-a-Service. At the same time, it also makes it to our list of the cheap stocks to buy.
In addition, as AI storage of NetApp, Inc. (NASDAQ:NTAP) advances, it is providing support to growing data needs in quantum computing. As more businesses adopt AI, NetApp’s robust storage solutions provide a solid base for the massive data requirements of quantum computing, helping this technology move into mainstream business use.
2. HP Inc. (NYSE:HPQ)
Number of Hedge Fund Holders: 48
Forward Price to Earnings (P/E) ratio: 7.19
HP Inc. (NYSE:HPQ) leads the world in PC, printing, and 3D printing tech, working in three areas: Personal Systems, Printing, and Corporate Investments. Its product lineup covers desktops, laptops, notebooks, workstations, printers for commercial and consumers, and hybrid systems for today’s workers. The company is now heavily focused on AI and digital transformation to grow in AI and hybrid work environments.
In Q1 FY2025, HP’s revenue grew 2% from last year, with Personal Systems revenue up 5%, mostly from commercial PC sales. The company’s non-GAAP EPS hit $0.74, slightly beating its guidance midpoint, despite missing analyst expectations. Operating profit reached $984 million with $70 million in free cash flow, while HP Inc. (NYSE:HPQ) also gave back nearly $400 million to shareholders through buybacks and dividends.
HP’s Printing segment showed mixed results, where consumer print revenue increased 5%, but overall print revenue fell 1% in constant currency. The company’s innovation in AI and security is going strong, as HP Inc. (NYSE:HPQ) launched the first quantum-resilient printers with special ASIC chips. These chips use quantum-resistant encryption to protect against future quantum computing threats, positioning HP as a leader in preparing for quantum disruption in the computing industry.
Looking ahead, HP Inc. (NYSE:HPQ) expects significant growth in the second half of the year, driven by Windows 11 upgrades, more AI PCs, and ongoing cost cuts. The company raised its yearly free cash flow guidance to $3.2-$3.6 billion, showing financial strength. Its emphasis on security, AI, and quantum-resistant tech shows that the company is ready for whatever comes next in technology.
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.
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