While few sectors are as hot as quantum computing stocks to buy, many investors are shying away from the broader technology sphere. Even powerhouses like Nvidia (NASDAQ:NVDA) have witnessed a marked decline in investor enthusiasm. To be sure, economic concerns are nothing to scoff at. However, the slowdown could be an opportunity to pick up compelling ideas on the cheap.
Fundamentally, oversold quantum computing stocks align with a massive burgeoning industry. According to Spherical Insights, the underlying global sector reached a valuation of $13.67 billion last year. Further, experts project that the segment will expand at a compound annual growth rate (CAGR) of 26.5% by 2032. By then, quantum computing could hit $143.44 billion.
Given that the direct players represent relatively small enterprises, the ultimate reward for holding on could be groundbreaking. Therefore, these are the oversold quantum computing stocks to buy.
Rigetti Computing (RGTI)
Based in Berkeley, California, Rigetti Computing (NASDAQ:RGTI) is one of the most popular quantum computing stocks to buy. A developer of quantum integrated circuits (ICs) used for the underlying innovation, Rigetti also develops a cloud platform that enables programmers to write quantum algorithms. Since the beginning of this year, RGTI gained over 138%.
On that basis alone, it doesn’t appear that RGTI is one of the oversold quantum computing stocks. However, shares began to print red ink recently. For example, in the trailing five sessions, RGTI slipped almost 15%. Against the broader context of the past 365 days, RGTI dipped 57%.
Technically, RGTI’s moving average indicators point to a consensus “sell” signal. That led to an overall consensus of neutral, hardly a sign of confidence. However, this could be an opportunity to pick up an incredibly promising stock at a relative discount. Finally, analysts peg RGTI as a moderate buy with a $3.50 price target, implying over 101% upside potential.
D-Wave Quantum (QBTS)
Hailing from British Columbia, Canada, D-Wave Quantum (NYSE:QBTS) is another popular (albeit speculative) idea for quantum computing stocks to buy. Per its public profile, D-Wave was the world’s first company to sell computers to leverage quantum effects in their operation. Impressively, the tech enterprise’s clients include major aerospace/defense firms, along with universities and government agencies. Since the start of the year, though, QBTS dipped 20%.
To be fair, QBTS presents a choppy framework that makes it move all over the map. For instance, in the trailing six months, shares gained over 64%. On the other hand, in the past one-month period, it cratered nearly 40%. Still, the near-term red ink might make QBTS an enticing idea for oversold quantum computing stocks. Technically, moving average indicators signal a “strong sell” assessment. Overall, the consensus pings at “sell.”
Nevertheless, analysts love the idea, pegging QBTS a moderate buy. Significantly, their price target clocks in at $7, implying nearly 509% upside potential.
Arqit Quantum (ARQQ)
A literal penny stock, even the most jaded speculator will want to be careful with Arqit Quantum (NASDAQ:ARQQ). Operating as a Platform as a Service (PaaS), Arqit specializes in next-generation cybersecurity. We can’t forget that while digital innovation is generally welcome, nefarious activities to advantage of said innovations are never far behind. To prevent catastrophes, Arqit protects against today’s cyber threats as well as offers a defense against the quantum attacks of tomorrow.
Fundamentally, ARQQ may be one of the most important quantum computing stocks available. At the same time, it’s incredibly oversold. Since the Jan. opener, ARQQ fell almost 71%. In the trailing one-year period, shares hemorrhaged nearly 85% of market value. Unsurprisingly, the technical profile has baked in much of the negativity. Per TipRanks, the consensus among moving average indicators assesses ARQQ as a “strong sell.” Overall, the consensus sits at “sell.”
Currently, no one covers ARQQ. However, back in May, H.C. Wainwright’s Scott Buck put a price target of $6 on shares, implying nearly 582% upside potential.
On the date of publication, Josh Enomoto did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.