Should You Forget Palantir and Buy These 3 Quantum Computing Stocks Instead?

Few artificial intelligence (AI) software companies have generated sizzling growth like Palantir Technologies (NASDAQ: PLTR) has. However, the AI stock is priced at a steep premium due to its success. Palantir's shares trade at roughly 82 times forward earnings.

Investors seeking the next Palantir-like opportunity may want to shift their focus to another area: quantum computing. This technology is at an earlier stage than AI software, which means the prospects of tremendous gains could be greater. Should you forget Palantir and buy these three quantum computing stocks instead?

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1. Alphabet

Some might be surprised to see Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) on this list. The company is best known for its Google search engine, YouTube video-sharing service, and Android mobile operating system.

But Alphabet has impeccable quantum computing credentials, too. The company's Google Quantum AI unit has racked up multiple impressive wins. For example, its Willow quantum chip performed a calculation in less than five minutes that would take the fastest supercomputers available today 10 septillion (that's 10 followed by 24 zeros) years to handle.

Quantum computing is a perfect fit for Alphabet's Google Cloud unit. Google Cloud ranks among the top three cloud platforms and is a top choice for hosting AI applications. If Alphabet achieves its goal of delivering a large error-corrected quantum computer within the decade, Google Cloud's growth could be explosive.

Compared to Palantir, Alphabet looks dirt cheap. It's one of the cheapest "Magnificent Seven" stocks, with a forward earnings multiple of 23. Alphabet doesn't have the risk associated with significant reliance on federal government spending as Palantir does, either.

2. IonQ

If you're looking for a pure-play quantum computing stock, IonQ (NYSE: IONQ) is without question one of the most exciting candidates. The company's revenue soared 287% year over year in the second quarter of 2026 to $80.1 million, marking the fifth consecutive quarter of record results.

IonQ isn't just developing quantum computers. It's also focused on quantum networking, quantum sensing, and quantum cybersecurity. The company's recent acquisition of SkyWater Technology, the largest U.S.-based semiconductor foundry, enabled IonQ to become the only vertically integrated full-stack quantum platform provider.

Wall Street favors IonQ above Palantir these days. The consensus 12-month price target for Palantir reflects a potential upside of around 7%. But the average analyst price target for IonQ is more than 70% above the current share price.

However, there are risks associated with investing in IonQ. The company remains unprofitable. Its valuation is also at a nosebleed level, with shares trading at 54 times trailing 12-month sales (although that's still lower than Palantir's 76.5 sales multiple).

3. D-Wave Quantum

At first glance, D-Wave Quantum (NASDAQ: QBTS) might appear to be a less attractive pure-play quantum computing alternative than IonQ. Its stock has performed worse than IonQ's. D-Wave's Q2 revenue was only $3.1 million, with no growth compared to the prior year period.

However, D-Wave Quantum nonetheless offers a unique investment proposition. It's the only dual-platform quantum computing company. D-Wave develops quantum annealing technology that is ideally suited for optimization and probabilistic sampling. The company also markets gate-model quantum computers, which use quantum gates similar to Boolean gates in classical computers.

Analysts are arguably more excited about D-Wave than they are about IonQ and Palantir. The average price target projects that the stock will more than double over the next 12 months. Of the 17 analysts surveyed by S&P Global (NYSE: SPGI) in September who cover D-Wave, 15 rated the stock as a "buy" or "strong buy."

Palantir beats D-Wave Quantum hands down in terms of recent revenue growth. The AI software company is also profitable, while D-Wave isn't. However, D-Wave believes it's well-positioned to be the first to deploy large-scale error-corrected gate-model quantum computers. If the company achieves this goal, it could plausibly be a much bigger winner than Palantir over the next decade.

Keith Speights has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, IonQ, Palantir Technologies, and S&P Global. The Motley Fool has a disclosure policy.