8 Best Quantum Computing Stocks to Invest In According to Hedge Funds

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6. Xanadu Quantum Technologies Limited (NASDAQ:XNDU)

Number of Hedge Fund Holders: 13

On May 21, 2026, Xanadu Quantum Technologies Limited (NASDAQ:XNDU) said it achieved an algorithmic breakthrough in Quantum Read-Only Memory by cutting expensive quantum operations roughly in half. It also addresses a key hardware bottleneck. The company said QROM had seen no meaningful progress for seven years, with its new approach lowering resource requirements for advanced applications.

The corporation said the improvement halves the number of Toffoli gates among the most computationally intensive operations. It also replaces qubit “swapping” with a more efficient “copying” method and eliminates unnecessary data-unloading steps across QROM sequences. These are two changes with one outcome, dropping costs sharply.

Xanadu Founder and Chief Executive Officer Dr. Christian Weedbrook said the company is “making quantum computing practical” and added that halving QROM costs drops computation expenses and speeds up timelines for real-world use. Xanadu Quantum Technologies Limited (NASDAQ:XNDU) said the breakthrough allows more complex workloads on near-term systems, where limited qubits constrain performance.

Xanadu Quantum Technologies Limited (NASDAQ:XNDU) works in the provision of quantum computing solutions for enterprise and government clients.

While we acknowledge the potential of XNDU 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 XNDU and that has 100x upside potential, check out our report about the cheapest AI stock.

Click to continue reading and see the 5 Best Quantum Computing Stocks to Invest In According to Hedge Funds.

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