This Quantum Computing Stock Recently Went Public, and It Could Be the Buy of the Year

Quantum computers have arrived on the heels of the artificial intelligence (AI) frenzy, and the timing couldn't be better. After governments around the world invested in AI, they are now doing the same with quantum technologies.

These machines represent a technological breakthrough, potent in their ability to apply quantum mechanics to perform calculations in minutes that would take today's supercomputers centuries. However, they remain unproven on a large commercial scale, inviting parallels to the emerging personal computing era of the 1980s.

Investors who bought Microsoft stock at its initial public offering (IPO) price of $21 back in 1986 have enjoyed robust gains. Its shares rose over 100-fold in the decade after its IPO. The Microsoft of the quantum computing era could be Horizon Quantum (NASDAQ: HQ). The company develops software for quantum computers and went public this year.

Horizon's goal is to be the software system of choice in the quantum computing era. If it succeeds, the company can serve a role similar to Microsoft's Windows operating system in the 1980s, which continues to dominate the PC market to this day.

Here's a deeper dive into Horizon Quantum and whether it makes sense to buy shares at this early stage in its business.

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Horizon Quantum's competitive differentiation

Horizon's focus on quantum computing software is a key distinction. Many companies in the sector are working on hardware, leaving a market gap that Horizon hopes to fill. As the only public enterprise dedicated to software for the industry, Horizon's strength lies in its first-mover advantage.

At the heart of its offerings is the Triple Alpha platform, designed to enable any software developer to use quantum computers, even without experience with the technology. Triple Alpha is meant to work with any type of quantum computer. This is significant because businesses in the space are using different methodologies to perform quantum calculations. For Triple Alpha to become the leading software system, it needs to be hardware-agnostic to attract users.

To that end, Horizon purchased a quantum computer from IonQ, a leader in ion-based technology. To date, Horizon has focused on compatibility with quantum computers employing superconducting qubits. This approach is one of the industry's older, widely used techniques to execute calculations. Buying IonQ's device allows Horizon to extend its software compatibility to ion-based machines.

Horizon Quantum's soaring share price

Since Horizon went public on March 20, opening at $12 per share, the stock has rocketed as high as $45 on June 22. Several catalysts drove the stock higher recently.

The main impetus was President Trump's June 22 executive order establishing new initiatives to drive U.S. leadership in quantum computing, including the development of a national quantum computer. This news galvanized investor excitement across the quantum sector, sweeping up Horizon's stock with it.

Another catalyst was investment bank Needham initiating coverage in June and rating Horizon stock a buy. Needham's analyst noted the company's first-mover advantage as a factor in the recommendation.

Even so, Horizon's share price increase is more about future potential than today's financial performance. The company reported no revenue in the first quarter. Its Q1 2026 operating expenses totaled $6.5 million, up from $4.7 million in 2025. Thanks to its IPO, Horizon exited Q1 with $96.6 million in cash and equivalents. These funds should sustain operations for a time while it works to produce sales.

However, its operating expenses are likely to continue growing. On June 11, Horizon announced it was opening a research center in Ireland. This location will house the quantum computer purchased from IonQ and will require new staff to oversee the device.

The company will also need to expand its employee base and equipment if it wants to adopt additional quantum computing modalities. Others include neutral-atom tech championed by Infleqtion and photonic quantum computers used by Xanadu Quantum Technologies, both recent quantum computing IPOs.

Is now the time to invest in Horizon Quantum stock?

Given its lack of revenue and rising costs, an investment in Horizon at this stage is risky. A contributing factor is that quantum computers are not yet ready for widespread commercial use. To get there, the industry must overcome some challenges.

For instance, quantum machines using superconducting qubits require special cryogenic equipment to keep temperatures colder than outer space. This means they are expensive and require precise calibration and maintenance, making them impractical for widespread adoption.

Businesses in the quantum sector are racing to make their computers more efficient and cost-effective. Horizon's role on the software side is a piece of that. But until these barriers are lowered, and given the short time since Horizon's IPO, investing in the company is only for those with a high risk tolerance and who see Horizon as akin to buying Microsoft shares in 1986.

With the stock trending down since hitting $45 on June 22, a more prudent approach is not to rush. Instead, wait for subsequent earnings reports to gain further insights into how Horizon's business is progressing.

Robert Izquierdo has positions in IonQ and Microsoft. The Motley Fool has positions in and recommends IonQ and Microsoft. The Motley Fool has a disclosure policy.