If you sat on your hands and missed out on the AI stock rally, you might have a second shot at catching another tech revolution: quantum computing.
Excitement is building over the prospects of these computers that promise to operate many times faster than what's available now. Paired with AI, quantum computing could upend the industry. And while quantum is in it infancy, investors are already picking their favorites.
A dozen stocks in the Defiance Quantum ETF, including Palantir Technologies, D-Wave Quantum and Cloudflare, are already up 30% or more this year. That's much higher than the average 9.1% gain by all the U.S.-listed stocks in the ETF. Shares of the quantum ETF are up 13% this year.
Some hope quantum will be the next big theme to keep the big-cap tech rally rolling. "Quantum is humanity's next 'fire moment': performing endless complex calculations, warp-speeding human knowledge," says a report from Bank of America.
Palantir Leads AI And Quantum
Some of the leaders in AI are also pushing ahead in quantum computing. Take Palantir. Shares are up more than 108% this year, making them the top performers in the quantum ETF.
The shares are on a tear. They sport a perfect 99 RS Rating and 98 EPS Rating. And there's no slowdown in sight. Analysts think it will post 42% earnings growth in 2025. The stock, though, is extended from its 200-day moving average.
Looking At More Specialized Players
Following Palantir is D-Wave, which makes quantum computing systems. Its shares are up 106% this year, making it the largest pure-play winner.
Investors pushed the RS Rating to an impressive 99. But earnings are yet to follow. The stock's EPS Rating is just 24. And analysts think it will lose 16 cents a share this year — which apparently is a plus in this market.
So while you might have missed part of AI's early run, quantum is just beginning.
Top Quantum Stocks This Year
Based on Defiance Quantum ETF
| Name | Year-to-date % ch. |
|---|---|
| Palantir Technologies | 108.9% |
| D-Wave Quantum | 106.3% |
| Cloudflare | 93.6% |
| Oracle | 52.9% |
| Advanced Micro Devices | 46.5% |
| Snowflake | 44.5% |
| Alibaba Group Holding | 41.9% |
| KLA | 39.8% |
| RTX | 36.1% |
| Nvidia | 32.5% |
| Synopsys | 30.7% |
| Lam Research | 30.3% |
