In this article, we will discuss: 8 Best Quantum Computing Stocks to Invest In According to Hedge Funds.
On May 21, Business Insider reported that quantum computing stocks rose after the US Department of Commerce declared $2 billion in CHIPS Research and Development grants. Commerce Secretary Howard Lutnick stated, “With today’s CHIPS Research and Development investments in quantum computing, the Trump administration is leading the world into a new era of American innovation,” noting that the program had the goal to increase domestic skills and generate jobs. According to the Wall Street Journal, IBM receives almost half of the package, whereas GlobalFoundries receives $375 million, and several quantum-focused startups, including D-Wave Quantum, Rigetti Computing, and Infleqtion, each receive approximately $100 million.
Infleqtion CEO Matt Kinsella said the investment showed economic competitiveness and national security concerns, and he described quantum computing as a transformative technology. As per the Business Insider story, Infleqtion jumped by 23%, D-Wave Quantum grew 16.5%, Rigetti Computing rose 14%, GlobalFoundries surged 13%, Quantum Computing grew 11%, and IBM surged 7% in the aftermath of the announcement as investors priced in government-backed sector growth.
With that said, here are the 8 Best Quantum Computing Stocks to Invest In According to Hedge Funds.
Photo by Mika Baumeister on Unsplash
Methodology:
We used screeners to identify Quantum Computing Stocks and limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. We then identified those with the highest number of hedge fund holders, which we assessed using Insider Monkey’s database of hedge funds as of Q1 2026. The stocks are ranked in ascending order of the number of hedge fund holders.
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. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
8. Arqit Quantum Inc. (NASDAQ:ARQQ)
Number of Hedge Fund Holders: 4
Arqit Quantum Inc. (NASDAQ:ARQQ) is one of the Best Quantum Computing Stocks.
On May 21, 2026, Arqit Quantum Inc. (NASDAQ:ARQQ) reported Q1 fiscal 2026 revenue of $623,000, up sharply from $67,000 a year earlier and $463,000 in the prior half. It also reported eleven contracts as compared to seven in the entire year of 2025. The firm said operating costs averaged $2.6 million per month, while cash and equivalents reached $28.9 million at period end and $35.9 million by May 20, 2026.
The corporation had revenue across telecom, government, defense, and enterprise clients. The firm also launched Encryption Intelligence in January, announcing its first related contract on May 18, alongside new partnerships with Intel, 6WIND, and RAD.
CEO Andy Leaver said the “threat to cybersecurity is real.” He also noted that rising demand and contract activity show urgency around post-quantum migration. He pointed to renewed and new contracts, as well as growing partner-led sales, positioning Arqit Quantum Inc. (NASDAQ:ARQQ) to capture opportunities across key markets.
Arqit Quantum Inc. (NASDAQ:ARQQ) provides cybersecurity services through satellite and terrestrial forms. Its product is QuantumCloud, which secures devices with cloud-based quantum encryption.
7. Horizon Quantum Holdings Ltd. (NASDAQ:HQ)
Number of Hedge Fund Holders: 9
On June 3, 2026, Needham started coverage of Horizon Quantum Holdings Ltd. (NASDAQ:HQ). The firm had a “Buy” rating on the shares with a $20 price target. The firm noted that the focus is on making quantum programming as intuitive as classical systems. The analyst said the firm sees a coming “platform layer” as the industry approaches commercial advantage. It also added that Horizon holds a first-mover edge in quantum software infrastructure.
Earlier, on May 5, 2026, the corporation reported first-quarter results with a $6.5 million operating loss as compared to $4.7 million a year ago, while narrowing net loss to $3.6 million from $4.8 million, the company said. Adjusted EBITDA loss was $4.1 million from $1.8 million, with cash at $96.6 million.
Horizon Quantum Holdings Ltd. (NASDAQ:HQ)’s CEO, Dr. Joe Fitzsimons, said the business combination “provides financial runway” to accelerate R&D and expand its hardware testbed. He also pointed out that progress across partnerships and systems positions the company “towards quantum advantage.”
Horizon Quantum Holdings Ltd. (NASDAQ:HQ) is a firm that develops software tools. The company is based in Singapore.
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.
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