Forget NVDA … These 3 Quantum Stocks Could Be Bigger

Nvidia turned early investors into millionaires, but if you're looking for the next massive tech wave, quantum computing may be where the bigger upside is hiding now. Now, the quantum market is projected to grow from under $2 billion today to around $20 billion by 2035. And yet some of the most popular quantum stocks, names like IonQ, Rigetti, and D-Wave are still burning cash and rank near the bottom of our Zen ratings model. So, forget the lottery tickets. Today, I have three quantum stocks that are already profitable, already beating Wall Street estimates, and positioned to make money as this industry scales. Two of them are trading well below their recent highs, and my final pick has an average analyst target of roughly 50% above today's price, with some of Wall Street's best-performing analysts seeing more than a 100% upside. And these are the picks and shovels play behind the quantum boom. One controls the qubits, the other helps build them, and one powers the technology that makes them work. So, let's start with the backbone of the whole operation. Our first pick is going to be Keysight Technology, ticker symbol KEYS. And this is the company that quietly runs the quantum computers everyone else is still racing to build. Now, before we dig into Keysight, let me tell you who I am. My name is Jacob Wade, and I help high-income earners build wealth and retire early. Now, quick favor before we dig into this. If you find these types of videos useful, just tap the like button below. It tells the algorithm to put this kind of breakdown in front of more investors just like you. All right. So, what does Keysight actually do? Now, every quantum computer needs a control system, the bridge between our classical world of code and the quantum world of qubits. Keysight has already delivered the world's first commercial control system able to run more than 1,000 qubits. That is the largest of its kind on the entire planet. And when a lab or a tech giant wants to scale up, Keysight is who they call. And this is no science project without revenue, either. Keysight has beaten Wall Street's earnings estimates for 21 straight quarters. That's more than 5 years without a miss, and the earnings beats are getting bigger. Over the past year, revenue climbed around 25% and that flowed straight through to earnings, which is up more than 130%. That's the kind of operating leverage you love to see here. And Wall Street, of course, has taken notice. Of the 11 analysts that are covering shares, nine give Keysight a strong buy recommendation. And as of this week that I'm recording, the most bullish fair value target comes from a top 2% rated analyst and points to more than a 25% upside in the year ahead. Now, let's pop open the hood with our Zen ratings quant model. Here's how it works. The model analyzes every stock across 115 different fundamental, technical, and AI factors and then boils it all down to an intuitive letter grade, A through F, just like school. It also breaks out seven different component grades: value, growth, momentum, and more. So, you can see exactly where a stock is strong and where it might be weak. Now, the best part, you can pull the same rating on any stock for free at wallstreetzen.com. Now, Keysight earns a B rating, a buy recommendation landing in the top 12% of roughly 4,600 stocks that we track. And the component grades are where it gets very interesting. Sentiment lands in the top 20%. That means the smart money crowd is actually moving in here. The AI grade sits in the top 13%. And that grade measures how likely shares are to outperform based on patterns in the data, not how much artificial intelligence the company sells. But momentum is stronger still here, in the top 5%. These shares are in motion. But the standout here is financial strength. It's in the top 4%. The operational excellence that tends to show up again and again in future earnings reports. Now, if you add all that up, the strongest grades all point the exact same way. Solid fundamentals with shares that are already in motion. Now, the one knock on Keysight is valuation. Quality like this does not come cheap and shares trade at a premium to the average stock. But, a flagship product, a 5-year streak of beating estimates, and the street is now piling in. That's a potent way to kick off our list today. And honestly, that makes Keysight the backbone of the quantum build-out. But, before anyone controls a single qubit, something has to grow the chip that qubit lives on, and that's exactly where our next pick comes in. Now, before I get to the next stock, here's something that might interest you. Our editor-in-chief has put together a list of three stocks he believes could double in the year ahead. And yes, all three were located using the same Zen Ratings Quant Model that I'm featuring in this video. So, you can get that report by visiting wallstreetzen.com/double. Or, if you have your phone handy, just scan the QR code on the screen right here and grab it for free, or click the link in the description below. All right, our second pick here is the only company in this video that makes the raw material a quantum chip is built from. It's Veeco Instruments, ticker symbol VECO. Now, here's the story behind them. Superconducting qubits, the kind that IBM and Google are chasing, have to be grown from ultra-pure materials, one atomic layer at a time. Veeco's machines do exactly that. Their purpose-built systems grow superconducting and spin qubit material the whole industry leads on. And real quantum foundries are already buying them. As quantum spending ramps up, Veeco sells more machines. It's as simple as that. And here's the timely part of this. Even after our recent bounce, shares still sit more than 35% below their 52-week high. So, we get a chance to buy the dip on a company sitting right in the middle of the quantum supply chain. The balance sheet is clean with very little debt. And shares currently trade at a PEG ratio under 0.6. Now, PEG is just the price-to-earnings ratio adjusted for growth, and under one is considered cheap. So, 0.6 is solid. The average stock trades near 1.5. So, Vico could rally a long way from here and still look like a bargain stock. Now, the timing goes beyond the current dip. Quantum is quietly shifting from one-off science experiments toward actual manufacturing. And that shift plays right into Vico's hands. Building a qubit once in a lab is one thing. Building them the same way over and over and over again at production scale is a far tougher problem. And it's exactly the kind of repeatable high-volume work that Vico's machines are actually built for. The further the industry moves forward into real production, the more those machines are needed. Now, Wall Street has barely shown up on this one. Just three analysts cover Vico today. Coverage is genuinely split between one strong buy, one buy, and one hold recommendation. For a company this deep into quantum supply chain, this is the street just being slow to the story. And being ahead of the curve can actually work in your favor. Now, our Zen ratings, however, paint a very optimistic picture. Now, real quick, before I get into the ratings, we do publish data-driven stock analysis like this every single week on this YouTube channel. If you want us showing up in your feed, just go ahead and hit the subscribe button below, and make sure you hit that notification bell. It helps you see more of what we're putting out. Now, with the Zen ratings, Vico earns an A rating, which is a strong buy recommendation in the top 4% of everything that our model tracks. Let's take a look at the actual component grades here to see where it shines. Now, momentum lands in the top 23%. Sentiment is in the top 12%, which means the smart money is starting to move in. Safety also is in the top 12%, and safety measures how steady and predictable a company's results are, not its debt load. Now, the standout here is growth. It's in the top 6% which foreshadows more earnings beats ahead. And if you put all of those components together, the strength clusters around growth and steady execution, which is just the profile you want from a supplier writing a multi-year buildout. Now, the main thing to watch here is size. Veeco is a smaller company, so shares can swing harder than a mega cap on any given day, and that volatility comes with the territory this early in the quantum buildout. But, with an elite A rating, a bargain level PEG ratio, and a front-row seat to quantum manufacturing, all while shares are trading well off of their highs, that's the kind of setup that we love putting on your radar. So, so far, we have a company that controls the qubits and a company that grows them. Our final pick lights them up. And according to Wall Street, it carries the most upside potential of the bunch. All right, now, before we get to that last stock, one quick thing here. If you want to stay one step ahead of this market, then join our editor-in-chief, Steve Reitmeister, live every Monday. That's when he shares his updated market outlook and his trading plan to outperform this market. This is also when he shares his trade of the week based on our proven Zen ratings quant model and his greater than 40 years of investing experience. Now, it's a free event, but you do need to register to join. So, just go to wallstreetzen.com/live or you can click the link in the description below. Or again, if you have your phone handy, just scan the QR code right here and sign up. You can even just pause the video for a second, scan right here and sign up, and we look forward to seeing you on Monday. Now, I know you might be saying, "I can't join live on Monday." No problem. You should still sign up because we will send a replay to all registrants afterwards so you can watch when it's more convenient for you. All right, our final pick here. Now, picture a company our model graded in the top 4% of all stocks where the most bullish analysts on Wall Street see shares potentially doubling from here, let me introduce you to MKS Inc. Ticker symbol MKS I. So, what exactly does MKS do? Now, if Keysight controls the qubits and Veeco grows them, MKS lights them up. The company makes ultra-precise lasers and photonics that manipulate quantum states and help fabricate the devices themselves. Lasers, vacuum systems, motion control, the unglamorous gear that quantum AI chips and advanced semiconductors all depend on. Now, here's the part that I really like. MKS is not a pure quantum bet. The same precision gear is just as essential to the AI chips in every data center and the most advanced semiconductors around the world. So, you get paid across three booms at once with quantum as the upside kicker here. Now, for the entry point on these shares. Right now, shares are down about 24% over just the past three months. So, we can snag a high-quality name on a dip. Semiconductor stocks are cyclical and a swing like this is par for the course. But, for a company executing this well, that pullback is more of an entry than a warning. And, if we look underneath it, the business is firing on all cylinders. Last quarter, earnings jumped more than 85% over the prior year. Now, like Keysight, MKS has beaten estimates for 21 straight quarters. How ironic that two companies have beaten estimates for over five years. Now, the difference here is what's coming next for MKSI. Every new generation of AI and quantum chip is harder to build than the last. There's more layers, there's more process steps, more of the exact precision gear that, guess what, MKS sells. This probably explains why Wall Street experts see revenue climbing around 18% in the year ahead and earnings are set to grow more than 60%, which is well ahead of its industry. Now, best of all, you're also not overpaying for that growth, because MKS trades at a peg of just 0.76. Now, remember the average stock sits around 1 and 1/2, so these shares could climb a long way, almost double, and still be cheaper than the market. Now, I will say growth is nice, but growth plus value, that is much, much nicer. And Wall Street is pounding the table. Of the 12 analysts covering MKS, eight of them give it a strong buy recommendation. And here's where it gets fun. As of the week that I'm recording this, their average fair value target sits roughly 50% above today's price. And I want you to take a look at the most bullish analysts on the board. Two of them rank in the top 1% in terms of actual stock picking performance, and their price targets imply an upside of more than 100%. So, it will surprise no one that I will say our Zen ratings model also loves this stock. MKS earns an A, a strong buy recommendation, and is in the top 4% of all stocks that we rank. Financial strength lands in the top 23%, which means operational excellence shows up in the earnings. Sentiment, top 19%. Again, smart money is on board here. Value is also in the top 19% based on 21 different value measures. And the standout here is growth, in the top 7% of all stocks that we track. Now, I'll say the one thing to keep an eye on with MKS is debt. The company took on a chunk of leverage from a past acquisition, so the balance sheet carries more than some of its peers. Now, the flip side is that the earnings are growing fast enough to cover it comfortably. And an A rating, growth you're not overpaying for, a beaten-down entry point, and Wall Street targets pointing as high as double, that's why I saved MKS for last. Of our three picks, it's the one that keeps winning even if quantum takes longer than the hype promises. AI and semiconductors will pay the bills today, and quantum will give it a boost later. And that's why I think MKS deserves consideration, whether it deserves a place in your portfolio. So, there you have it, three ways to play quantum computing that our Zen ratings model actually ranks among the best stocks in the market today. And with two of these trading well off their recent highs, those discounted entry points may not stick around for long. And remember, Zen ratings are updated daily. So, if you're watching this at a later date, you can pull the free rating from over 4,600 stocks yourself just by typing that ticker symbol into wallstreetzen.com. So, make sure you bookmark the site. Now, I want to hear from you, which of these three is your favorite? And maybe there's a quantum stock I did not mention that you're keeping an eye on. Drop it in the comments below and let our community weigh in. And if you want to know which names could be the actual next breakout, the video on the screen breaks down my favorite under-the-radar growth stocks for the months ahead.