3 Tech Stocks to Buy Before Q-Day

Quantum computing is a relatively new technology, and the world's top investors are paying attention to how it develops. In particular, some are looking ahead to an event that the experts view as inevitable: the point when quantum computers are powerful enough to crack the public-key encryption tools that are widely used to secure data and communications today -- an event that has been dubbed "Q-Day."

Hackers and cybercriminals with access to the technology at that point will be able to rapidly decrypt previously well-secured data and obtain access to sensitive information about consumers, businesses, and governments. Companies and countries aren't waiting idly for Q-Day to happen, however.

Shark Tank personality Kevin O'Leary, former White House chief of staff Mick Mulvaney, and Fox Business host Charles Payne were some of the people who convened in New York this month for a Q-Day investment forum organized by Naoris Protocol, a company that uses blockchain technology to prepare businesses for that day.

"Infrastructure migration takes years," Naoris Protocol CEO David Varvalho said in the opening presentation. "You do not wait until the last second to modernize national infrastructure. Once Q-Day happens, it's already too late."

That means there are investment opportunities driven by that looming threat right now, and these three tech stocks look poised to gain momentum as Q-Day approaches.

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1. IBM

Quantum computing isn't all bad. When it's developed far enough, it will be able to handle complex computational problems that are beyond the capacity of even the most powerful classical supercomputers. IBM (NYSE: IBM) aims to prepare businesses for Q-Day while also working to enable the good parts of quantum computing. Last year, the company said it would invest $150 billion into mainframe and quantum computers over the next five years, and it recently committed another $10 billion to its efforts to advance the technology.

All of those investments should help position IBM as a leader in quantum computing when it does go mainstream. The company has already demonstrated it can still capitalize on new technology. Its early investments in artificial intelligence helped its business break out after a "lost decade," and contributed to the stock doubling over the past five years. Overall revenue increased by 9% year over year in Q1, showing that its comeback story still has momentum.

IBM has deeply invested in quantum computing, so it makes sense that the company is also prepared for Q-Day. The company's Guardium service specializes in post-quantum cryptography, helping organizations prepare to protect sensitive data when Q-Day arrives.

2. IonQ

IonQ (NYSE: IONQ) is a pure-play quantum company that builds general-purpose quantum computers and software, and leases access to its quantum computers via the cloud. Its systems are designed using trapped-ion qubit technology, and so far, it has been the most effective player in the space at increasing the accuracy of its quantum computers.

Investors are willing to pay a hefty premium for IonQ stock even though the company is still burning through money. Its market cap is more than $20 billion, yet it brought in only $64.7 million in revenues in Q1. Still, that revenue figure represents a 755% year-over-year increase and prompted the company to raise its full-year guidance to between $260 million and $270 million. The $265 million median of that range would give it a forward price-to-sales ratio of roughly 80.

"Securing our first 256-qubit system sale and receiving our first ion trap chip samples back from the fab this quarter marks a pivotal shift toward commercial scale," IonQ CEO Niccolo de Masi said in the Q1 press release.

Not only is IonQ poised to benefit from commercial applications of quantum computing, but it also offers specific tools to prepare businesses for Q-Day. The company's Clovis XG Quantum Key Distribution hardware portfolio can scale quantum security for its customers at lower costs. Moreover, it doesn't require those clients to overhaul their systems or dedicate optical networks for quantum security.

3. CrowdStrike

CrowdStrike (NASDAQ: CRWD) has established itself as a top name in cybersecurity. It's already gaining momentum as organizations' cybersecurity needs increase due to the widening use of artificial intelligence. The pending arrival of Q-Day could be another growth catalyst.

The company continues to roll out new features and upgrades on its Falcon platform in anticipation of the evolving cybersecurity landscape, even as it's addressing the current security gaps of many organizations. CrowdStrike also recently announced an expanded partnership with IBM to further enhance AI security systems. That partnership should come in handy as CrowdStrike prepares for Q-Day.

In the meantime, CrowdStrike's growth has been accelerating. In its fiscal 2027 first quarter, which ended April 30, it achieved 26% year-over-year revenue growth and $5.51 billion in annual recurring revenue. Companies that pay for subscriptions to its services tend to stick around since the costs of falling victim to cyberattacks can be far greater than the expenses of paying for adequate cybersecurity.

Marc Guberti has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends CrowdStrike, International Business Machines, and IonQ. The Motley Fool has a disclosure policy.