BofA Securities names top quantum computing stocks to watch

Investing.com -- BofA Securities maintains a constructive outlook on quantum computing stocks, highlighting trapped-ion technology as its preferred modality while addressing recent market volatility in the sector.

The firm emphasizes that quantum stocks are expected to remain high-beta investments, but expresses confidence in leading companies’ ability to generate quantum advantage before 2030. Recent selloffs in the sector have created opportunities, according to the analysis, as key technology roadmaps remain on track despite near-term market pressure.

IonQ (IONQ)

BofA Securities rates IonQ as a Buy, noting several significant developments. The company was selected by DARPA for Quantum Benchmarking Initiative Stage C, worth up to $300 million, representing an important endorsement of its technology capability. IonQ recently completed a $2 billion stock offering priced at $40 per share, which included 100 million seven-year warrants. The firm views this capital raise as providing funding for Skywater investment, roadmap research and development, and potential future mergers and acquisitions while reducing risk in roadmap progression. The company’s next-generation Superion platform remains scheduled for launch in the second quarter of 2027. Additionally, IonQ is acquiring cybersecurity firm Elisity for up to $1.3 billion in stock, expected to close in the fourth quarter. BofA Securities estimates Elisity generates approximately $62 million in annual recurring revenue. This acquisition adds security as a second growth engine, allowing IonQ to monetize network mapping alongside quantum key distribution hardware and cybersecurity subscriptions.

Quantinuum (QNT)

BofA Securities maintains a Buy rating on Quantinuum despite the stock’s recent selloff. While the company remains in DARPA’s Stage B rather than advancing to Stage C in the first wave, DARPA has stated it does not pick winners and losers and expects more Stage C promotions in the near future. Quantinuum maintains a significant logical qubit lead versus peers. The company’s Helix error-correction architecture running on Helios beat the physical baseline on every benchmark without discarding any runs, demonstrating industry-leading logical performance. Recent work with JPMorgan demonstrated near-break-even performance of complex, error-corrected algorithmic quantum circuits using only fault-tolerant components. Quantinuum’s next-generation Sol platform is scheduled for the second half of 2027, with Apollo following in 2029. The company holds $2.1 billion in cash with limited dilution risk given its compute-only focus.

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