The Smartest Quantum Computing Stocks to Buy Now
Nvidia's DGX Quantum system can help developers rapidly advance quantum programming.
IBM's Qiskit has become the leading software platform for quantum programming.
Microsoft is making rapid progress toward commercial-scale quantum systems.
10 stocks we like better than Nvidia ›
The artificial intelligence (AI)-fueled technology revolution has taken the world by storm. However, quantum computing is now promising to be the next paradigm-shifting technology. This transformative technology aims to reshape computational capabilities across every industry.
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Despite the high future growth potential, monetization opportunities in quantum computing are still limited. Therefore, it makes sense for investors to select companies involved in quantum computing that are already generating revenue and profits. Here are three top-notch companies that can give investors exposure to the quantum computing revolution with limited risk.
Nvidia
Semiconductor giant Nvidia (NASDAQ: NVDA) is the undisputed leader in accelerated computing. Thanks to its critical role in building the global AI infrastructure (hardware and software), the company is generating massive cash flows. This, in turn, allowed it to invest in technologies like quantum computing.
Nvidia is not building quantum computing chips directly. Instead, it announced the launch of Nvidia DGX Quantum, the first GPU-accelerated quantum computing system globally. The system is powered by Nvidia's advanced Grace Hopper Superchip (CPU+GPU) and open-source CUDA Quantum programming model.
Nvidia is providing the essential software and hardware infrastructure that quantum developers require today. Hence, Nvidia plans to start generating revenue even though the quantum industry has not yet matured.
Nvidia has already formed partnerships with companies including IQM Quantum Computers, Pasqal, Honeywell subsidiary Quantinuum, Quantum Brilliance, and Xanadu. These deals allow software developers to work effectively with quantum hardware through Nvidia's platform.
Unlike pure quantum start-ups struggling financially, Nvidia boasts strong profitability. The company generated $60.8 billion in free cash flow in fiscal 2025 (ending Jan. 26). Nvidia's revenue surged 69% year over year to $44.1 billion, while net income was up 26% year over year to $18.8 billion in the first quarter of fiscal 2026 (ending April 27). This financial strength enables the company to invest in new opportunities without risking the core business.
Trading at almost 36 times forward earnings, Nvidia commands a premium valuation. However, as the company provides essential tools that every quantum company needs rather than developing specific quantum hardware, its stock is positioned to grow even higher in the coming years.
International Business Machines
International Business Machines (NYSE: IBM), or IBM, quietly transformed itself from a legacy technology company to a major enterprise AI player that generates revenue through enterprise software sales, consulting services, infrastructure systems, and cloud-based solutions. The company has also been making inroads in the quantum computing space since the 1980s. However, it is only in the past few years that its quantum investments have begun delivering tangible results.
IBM's launch of the 127-qubit Eagle processor in 2021 and the recent deployment of its Quantum System Two in Japan are significant milestones in the company's quantum strategy. The company offers quantum computing capabilities through the IBM Cloud and is powered by its quantum software stack called Qiskit. Qiskit is already the most popular software platform for quantum programming. Through the IBM Quantum Network, over 250 organizations collaborate on practical quantum applications. Since the launch of the quantum business in 2017, the company earned cumulative revenue of around $1 billion from quantum computing initiatives.
Unlike smaller quantum start-ups, IBM has a cash-generating and profitable core business. The company made rapid progress in the enterprise AI segment, as is evident from its generative AI book of business worth $7.5 billion from inception to date. With free-cash-flow guidance of over $13.5 billion for 2025, IBM has sufficient financial flexibility to build quantum capabilities. Yet the company is committed to returning capital and boasts a dividend yield of around 2.69%.
Hence, although quantum represents a growing but still modest portion of IBM's business, the technology can prove to be a significant growth catalyst in the long run.
Microsoft
Technology giant Microsoft (NASDAQ: MSFT) is also at the forefront of the emerging quantum computing technology. The company's recent breakthroughs, including creating 24 advanced quantum bits with partner Atom Computing and unveiling the Majorana 1 quantum processor in February 2025, demonstrate its quantum computing leadership.
Microsoft's Azure Quantum service offers customers cloud-based quantum compute capabilities. The service provides clients access to quantum hardware, quantum software, and quantum services for running quantum programs on real quantum hardware, simulating quantum algorithms, and estimating resources needed to scale quantum programs. Even CEO Satya Nadella recently pointed out that "The next big accelerator in the cloud will be Quantum."
Azure Quantum offers quantum hardware from various third-party providers such as IonQ, Quantinuum, Pasqal, and Rigetti Computing. Microsoft and Atom Computing have planned to ship commercial quantum computers in 2025, featuring over 1,000 physical qubits (unlike regular binary bits used in traditional computing, which can be expressed either as 0 or 1, qubits can exist in multiple states simultaneously), thereby starting to monetize its quantum technology. Microsoft achieved the first operational deployment of a Level 2 Quantum computer with Atom Computing in July 2025, marking significant progress toward commercial viability.
Microsoft is integrating quantum computing with AI to deliver a decisive competitive advantage. In January 2025, the company launched its Quantum Ready program to help businesses prepare for quantum transformation.
Its Azure cloud computing business generated more than $75 billion in revenue in fiscal 2025, up 34% year over year. Microsoft's revenue also surged 15% year over year to $281.7 billion, while free cash flow was $71.6 billion in fiscal 2025, which ended June 30. Hence, it is clear that Microsoft has sufficient financial strength to support its quantum ambitions without straining resources.
Considering all the factors, Microsoft offers a low-risk way of investing in the quantum computing opportunity.
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Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $653,427!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,119,863!*
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Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
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Forward-Looking Statements This communication includes or incorporates forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended ('Exchange Act'). You can identify these forward-looking statements by our use of words such as 'intend,' 'plan,' 'may,' 'will,' 'project,' 'estimate,' 'anticipate,' 'believe,' 'expect,' 'continue,' 'potential,' 'opportunity' and similar expressions, whether in the negative or affirmative. Such forward-looking statements, which speak only as of the date hereof, are based on managements' estimates, assumptions and beliefs regarding our future plans, intentions and expectations. We cannot guarantee that we will achieve these plans, intentions or expectations. All statements regarding our expected financial position, business, results of operations and financing plans are forward-looking statements. Actual results or events could differ materially from the plans, intentions or expectations disclosed in the forward-looking statements we make. We have included important facts in various cautionary statements in this communication that we believe could cause our actual results to differ materially from forward-looking statements that we make. The forward-looking statements do not reflect the potential impact of any future acquisitions, mergers or dispositions. We undertake no obligation to update or revise any forward-looking statements because of new information, future events or otherwise. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this release. For more details on factors that could affect these expectations, please see MediaCo's other filings with the Securities and Exchange Commission. Definitions and Disclosures Regarding Non-GAAP Financial Information We define Adjusted EBITDA as consolidated Operating loss adjusted to exclude restructuring expenses, business combination transaction costs, unusual and non-recurring expenditures and non-cash compensation included within operating expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization, Loss on disposal of assets, change in fair value of warrant shares liability and Other income. Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted to exclude Provision for income taxes, Interest expense, net, Depreciation and amortization, Loss on disposal of assets, Change in fair value of warrant shares liability, Other income, and Other adjustments. We use Adjusted EBITDA, among other measures, to evaluate the Company's operating performance. 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More info at Three Months Ended June 30, Change (Dollars in thousands) 2025 2024 $ % NET REVENUES $ 31,245 $ 26,202 5,043 19 OPERATING EXPENSES: Operating expenses 34,774 34,647 127 — Corporate expenses 1,554 3,445 (1,891 ) (55 ) Depreciation and amortization 1,697 1,431 266 19 Loss on disposal of assets 5 5 — N/A Total operating expenses 38,030 39,528 (1,498 ) (4 ) OPERATING LOSS (6,785 ) (13,326 ) 6,541 (49 ) OTHER INCOME (EXPENSE): Interest expense, net (3,855 ) (3,782 ) (73 ) 2 Change in fair value of warrant shares liability — (31,027 ) 31,027 N/A Other income 2,119 10 2,109 21,090 Total other expense (1,736 ) (34,799 ) 33,063 (95 ) LOSS BEFORE INCOME TAXES (8,521 ) (48,125 ) 39,604 (82 ) PROVISION FOR INCOME TAXES 279 182 97 53 NET LOSS $ (8,800 ) $ (48,307 ) 39,507 (82 ) MEDIACO HOLDING INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) Six Months Ended June 30, Change (Dollars in thousands) 2025 2024 $ % NET REVENUES $ 59,275 $ 32,908 26,367 80 OPERATING EXPENSES: Operating expenses 63,986 41,297 22,689 55 Corporate expenses 3,147 6,835 (3,688 ) (54 ) Depreciation and amortization 3,466 1,564 1,902 122 Loss on disposal of assets 144 5 139 2,780 Total operating expenses 70,743 49,701 21,042 42 OPERATING LOSS (11,468 ) (16,793 ) 5,325 (32 ) OTHER INCOME (EXPENSE): Interest expense, net (7,609 ) (3,918 ) (3,691 ) 94 Change in fair value of warrant shares liability — (31,027 ) 31,027 N/A Other income 2,230 20 2,210 11,050 Total other expense (5,379 ) (34,925 ) 29,546 (85 ) LOSS BEFORE INCOME TAXES (16,847 ) (51,718 ) 34,871 (67 ) PROVISION FOR INCOME TAXES 559 266 293 110 NET LOSS $ (17,406 ) $ (51,984 ) 34,578 (67 ) MEDIACO HOLDING INC. NON-GAAP FINANCIAL MEASURES RECONCILIATIONS OF NET LOSS TO EBITDA AND ADJUSTED EBITDA (1) AND NET LOSS MARGIN TO ADJUSTED EBITDA MARGIN (1) Three Months Ended June 30, Six Months Ended June 30, (Dollars in thousands) 2025 2024 2025 2024 Net revenues $ 31,245 $ 26,202 $ 59,275 $ 32,908 Net Loss $ (8,521 ) $ (48,125 ) $ (17,406 ) $ (51,984 ) % Margin (28 )% (184 )% (29 )% (158 )% Provision for income taxes 279 182 559 266 Interest expense, net 3,855 3,782 7,609 3,918 Depreciation and amortization 1,697 1,431 3,466 1,564 EBITDA $ (2,690 ) $ (42,730 ) $ (5,772 ) $ (46,236 ) Loss on disposal of assets 5 5 144 5 Change in fair value of warrant shares liability — 31,027 — 31,027 Other income (2,119 ) (10 ) (2,230 ) (20 ) Other adjustments 6,595 6,486 10,776 10,725 Adjusted EBITDA (1) $ 1,791 $ (5,222 ) $ 2,918 $ (4,499 ) % Margin (1) 6 % (20 )% 5 % (14 )% (1) We define Adjusted EBITDA as consolidated Operating loss adjusted to exclude restructuring expenses, business combination transaction costs, unusual and non-recurring expenditures and non-cash compensation included within operating expenses, as well as the following line items presented in our Statements of Operations: Depreciation and amortization, Loss on disposal of assets, change in fair value of warrant shares liability and Other income. Alternatively, Adjusted EBITDA is calculated as Net loss, adjusted to exclude Provision for income taxes, Interest expense, net, Depreciation and amortization, Loss on disposal of assets, Change in fair value of warrant shares liability, Other income, and Other adjustments. We define Adjusted EBITDA margin as Adjusted EBITDA as a percentage of net revenue. We use Adjusted EBITDA and Adjusted EBITDA margin, among other measures, to evaluate the Company's operating performance. These measures are among the primary measures used by management for the planning and forecasting of future periods, as well as for measuring performance for compensation of executives and other members of management. We believe these measures are an important indicator of our operational strength and performance of our business because they provide a link between operational performance and operating income. They are also primary measures used by management in evaluating companies as potential acquisition targets. We believe the presentation of these measures is relevant and useful for investors because it allows investors to view performance in a manner similar to the method used by management. We believe they help improve investors' ability to understand our operating performance and make it easier to compare our results with other companies that have different capital structures or tax rates. In addition, we believe these measures are also among the primary measures used externally by our investors, analysts and peers in our industry for purposes of valuation and comparing our operating performance to other companies in our industry. 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