A fresh new week means it’s time to refresh and update your watchlist…
If you haven’t looked at my Sunday night watchlist — go to your inbox and read it now.
I gave you a good mix of stocks to watch. But today I want to focus on one particular sector…
Stocks in this sector have seen gains of up to 263% over the last three months.
The sector’s a bit of a spin-off from the artificial intelligence sector and I think it could see more moves in the future.
So here are five stocks to watch so you can be ready…
Plus, see which tiny stock holds the key to an up-and-coming $7 trillion sector here.
What is Quantum Computing?
Let’s start with a breakdown of quantum computing in simple language and how it’s tied to artificial intelligence (AI).
Think of a regular computer like a giant puzzle and every piece of that puzzle is either a 1 or a 0.
When a computer puts these 1s and 0s together in a certain order, they can do cool stuff like show you videos, play games or help you chat with friends. It’s like the building blocks of computer magic.
Quantum computing plays by different rules…
Imagine having a super-powerful puzzle piece called a qubit. Unlike regular bits, qubits can be a 0, 1, or even both at once — they’re like shapeshifters.
Plus, qubits can team up and work together. This teamwork lets quantum computers chew through a ton of information super fast.
And when it comes to AI, quantum computing could give it a turbo boost…
Quantum computing can crack mind-boggling problems that regular computers can’t. For AI, this means it could dig deeper into huge piles of data and make even smarter choices.
But here’s the twist…
Because those qubits can ‘shapeshift’ it can be tough to keep them steady and mistake-free. That makes quantum computing a real challenge.
But with quantum tech on the horizon, it could totally change the AI game making it sharper and quicker.
Now you know why quantum computing stocks and artificial intelligence stocks are tied together.
Here are a few worth watching…
Quantum Computing Stocks to Watch
IonQ, Inc. (NYSE: IONQ) appears to be the quantum computing sector leader. It’s higher priced and has a float of 150 million shares. So it’s a slow grinder that could be a swing trade candidate with the right setup.
It was trading at just $5 a few months ago and it recently hit a high of $20.
The company announced earnings after hours on Thursday and the stock had a nice run on Friday morning. The stock traded around $16 on Friday bringing it close to a breakout over $20.
The stock was on my Sunday watchlist so go back and watch that for my plan.
IONQ chart: 1-year, daily candle — courtesy of StocksToTrade.com
Rigetti Computing, Inc. (NASDAQ: RGTI) is another quantum computing stock that ran on Friday after announcing earnings.
The stock has also had a nice multi-month run with a recent pullback from its highs.
But earnings gave it a boost and now it’s also closing back in on a breakout over $3.50.
RGTI chart: 1-year, daily candle — courtesy of StocksToTrade.com
D-Wave Quantum Inc. (NYSE: QBTS) isn’t spiking as much as IONQ and RGTI, but it also announced earnings on Thursday.
It did run for almost two months with the other quantum computing stocks, but now it’s pulling back.
We’ll see if this can find support and start to climb back to its recent high around $3. It has a float of 35 million, so it’s not too high. It just needs more volume to run.
QBTS chart: 1-year, daily candle — courtesy of StocksToTrade.com
Quantum Computing, Inc. (NASDAQ: QUBT) is a lower-priced stock that also has a decently lowish float of 33 million shares. It just needs to trade more volume to run.
It has some history of one-and-done days on the chart, but has also had multi-day runs. Be careful with this one. Ideally, it will have a catalyst and high volume for a day trade.
QUBT chart: 1-year, daily candle — courtesy of StocksToTrade.com
Arqit Quantum Inc. (NASDAQ: ARQQ) is the lowest-priced stock of all the quantum computing stocks. It’s trading at just over $1 per share and it has a float of 43 million shares.
The company announced a licensing deal on August 2 but the stock pulled back on the news.
If ARQQ can break above $1.60 it has a potential gap to fill on the chart up to $2. It has also had multi-day urns in the past.
ARQQ chart: 1-year, daily candle — courtesy of StocksToTrade.com
As you can see, there aren’t ideal day trades in any of these stocks right now. The stocks need to break above key levels, have a catalyst, and ideally more volume.
But keep these on your radar and create a watchlist. Because AI technology depends on quantum computing and chips to accelerate the sector’s growth.
So we could see more moves out of these stocks before the end of the year. Make sure you have a plan and a stop in place.
Stay ahead of hot sectors and the stocks that can move with them — I’m giving you a head start into a $7 trillion sector here. Check it out!
Have a great Money Monday.
See you back here tomorrow.
Tim Bohen
Lead Trainer, StocksToTrade