Hunting For The Next Nvidia? IonQ, D-Wave Or Rigetti Could Be Your Stock

Investors hunting for the next NVIDIA Corp. (NASDAQ:NVDA) could find candidates in the quantum computing sector, according to analysts at Mizuho Securities. 

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Quantum Revolution

On Thursday, Mizuho initiated coverage on IonQ (NYSE:IONQ), Rigetti Computing (NASDAQ:RGTI), and D-Wave Quantum (NYSE:QBTS) with Outperform ratings. The firm holds a bold vision that the quantum computing revolution mirrors the early days of GPUs and has the potential to scale from about a $1 billion market today to $205 billion by 2035. 

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Mizuho Securities analyst Vijay Rakesh says that the industry is entering the steepest part of its adoption S-curve. 

“We believe QC drives a new paradigm that offers exponential opportunities to 2035-40E as investors look for the next NVDA," the analysts said in the note. 

Each of the three picks offers a distinct angle on this “exponential opportunity”:

IonQ (Price Target $90) 

IonQ is positioned as the technology leader. Utilizing trapped-ion technology, it boasts superior error rates and coherence times compared to peers.

Mizuho sees IonQ as the frontrunner for high-performance commercial applications with its aggressive roadmap to scale to two million physical qubits by 2030. 

Rigetti (Price Target $50) 

Rigetti is the scalability play. As the closest independent peer to giants such as IBM and Google, Rigetti leverages a unique chiplet architecture and owns the industry’s first dedicated micro-fab. This vertical integration allows for rapid iteration and a clear path to 1,000+ qubits.

D-Wave (Price Target $46) 

D-Wave offers immediate utility. Dominating the quantum annealing market, D-Wave dominates the quantum annealing space and is already solving complex optimization problems for logistics and finance that classical computers struggle with. Its dual-track strategy of leading in annealing while developing a gate-model system provides a diversified entry point.

The Takeaway

While acknowledging that near-term revenue may be “lumpy” due to reliance on government funding, Mizuho concludes that the sector promises a “major transformation in high-performance compute (HPC) following in the steps of CPUs and GPUs."

For investors willing to weather the early volatility, these three stocks represent the ground floor of the next big compute revolution.

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