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While Wall Street seemingly cant get enough of artificial intelligence, a paradigm shift in the computing ecosystem could draw more eyeballs to quantum computing stocks. According to Investopedia, the underlying arena leverages the principle of quantum theory, which explains the behavior of energy and material on the atomic and subatomic levels.

Now, we dont need to turn this article into a science journal. However, when one of the fascinating components of quantum mechanics is the ability for particles to exist in more than one state at the same time. As it relates to the digitalization protocol, quantum computers could theoretically solve and run multiple problems and processes simultaneously. Its a massive accelerant compared to the classical approach, making quantum computing stocks a must-watch arena.

To be sure, its a young and burgeoning field. What Im trying to say is that myriad risks exist. Nevertheless, this innovation can swing open doors regarding productivity acceleration and even the strengthening of national security.

If you can handle the risk, below are compelling quantum computing stocks to buy and hold.

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In recent years, Ive shied away from running my mouth against the collective wisdom of Wall Street analysts. They get paid tons of money so they should know what theyre doing (I guess). But when it comes to IBM (NYSE:IBM), Im going to make an exception. Its easily one of the quantum computing stocks to buy and hold.

You can make the argument that if theres any enterprise that truly meets that definition for instance, if you theoretically had to make a claim under oath IBM stands alone. Yes, its a consensus hold and yes, the average price target of $163.85 implies significant downside risk. Im undeterred. First, were talking about a company that was around when William Howard Taft was the President of the United States. Its staying for the long haul.

More importantly, IBM delivered profound innovations in artificial intelligence, machine learning and enterprise cybersecurity. It continues to push the envelope with its various quantum computing technologies. While youre waiting for the narrative to pan out, Big Blue offers a forward dividend yield of 3.84%. Combined with an undervalued forward earnings multiple of 17.49X, IBM makes a great case for quantum computing stocks.

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Ive also been avoiding talking about this next company but for basically opposite reasons to IBM. Seemingly, no one can get enough of Nvidia (NASDAQ:NVDA). With its advanced graphics processing units (GPUs) undergirding AI applications, NVDA managed to skyrocket last year. Even more impressive, it has taken the momentum into this year. Since the beginning of January, NVDA popped up nearly 24%.

To be sure, analysts peg NVDA as a consensus strong buy and thats not a cheap assessment either. It breaks down as 33 buys and four holds. No ones going to be reckless enough to issue a sell rating. However, the concern many have is that NVDA lacks the legs to complete another marathon. Still, the experts disagree, projecting a price target of $674.68 or over 13% up.

While Nvidia generates headlines for its AI-related products, its also investing in quantum computing. Last year, the enterprise announced a new system to help build new applications that combine quantum with the most advanced classic computing hardware. With so many relevancies in key areas, NVDA legitimately makes a case for quantum computing stocks to buy and hold.

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Moving into the pure-play arena of quantum computing stocks, D-Wave Quantum (NYSE:QBTS) claims to be the worlds first company to sell computers that exploit quantum effects in their operation. While that may sound like an outrageous statement, D-Wave backs up the hype with substance. Specifically, it has partnered with several high-profile institutions in the past, including Lockheed Martin (NYSE:LMT) and the University of Southern California.

Looking ahead, D-Wave Quantum may offer the best upside among quantum computing stocks. Currently, QBTS enjoys a unanimous strong buy rating among three analysts within the past three months. If you extend out to the trialing year, that comes out to four buys. Moreover, the average price target clocks in at $2.17, implying over 177% upside potential.

Now, while D-Wave purports to offer quantum applications to address myriad problems from portfolio optimization to traffic congestion, the harsh reality is that QBTS is a literal penny stock. That means it could be a top performer or it could become one of the worst. Still, if you have some pocket change lying around, why waste it? Instead, QBTS seems a solid speculative opportunity.

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Read More:Penny Stocks How to Profit Without Getting Scammed

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.comPublishing Guidelines.

A former senior business analyst for Sony Electronics, Josh Enomoto has helped broker major contracts with Fortune Global 500 companies. Over the past several years, he has delivered unique, critical insights for the investment markets, as well as various other industries including legal, construction management, and healthcare. Tweet him at @EnomotoMedia.

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3 Quantum Computing Stocks to Buy and Hold Forever: January 2024 - InvestorPlace