Quantum Computing Stocks To Watch As US Policy Spending Picks Up

Quantum computing and advanced processing are moving from theory into real-world budgets, and US policy is now pointing serious money and attention at the companies involved. With new executive orders, funding plans, and government purchasing programs, the recent news matters for investors looking at quantum computing and advanced computing stocks. This article walks through 3 stocks from our Quantum Computing and Advanced Computing Stocks screener that are directly exposed to these developments, all on the positive side. The aim is to help you evaluate whether these policy moves make each stock more or less interesting for your own watchlist.

Guidewire Software (GWRE)

Overview: Guidewire Software provides cloud based core systems, data, and AI tools that help property and casualty insurers run key functions such as policy administration, claims, billing, pricing, and customer engagement on a single platform.

Operations: Guidewire generates about US$1.42b in revenue primarily from software and programming, with roughly US$914.25m from the United States and the balance from Canada, EMEA, APAC, and other Americas.

Market Cap: US$11.33b

Guidewire Software sits at the crossroads of insurance, cloud computing, and AI, which is increasingly relevant as insurers lean on advanced computing and data heavy models. The company reports subscription and support revenue, ARR, and expanding use of AI tools such as ProNavigator and Predict inside its InsuranceSuite and InsuranceNow platforms. This is supported by recent wins like Peel Mutual Insurance and index inclusions that can lift visibility. At the same time, the stock trades on a high P/E and has seen insider selling and funding risk from reliance on external liabilities. This means execution on cloud migration, margin improvement, and AI adoption is important. For investors tracking quantum and advanced computing themes, that balance between fundamentals and valuation risk may make Guidewire worth a closer look.

Guidewire’s AI heavy insurance platform is priced for perfection. Yet the real story sits in how its cloud subscriptions, margins, and cash needs fit together in one place, the analysis report for Guidewire Software

Ciena (CIEN)

Overview: Ciena builds the high capacity networking hardware, software, and services that telecom carriers, cloud providers, and governments use to move and manage data across long distance and metro networks, including for bandwidth heavy AI and advanced computing workloads.

Operations: Ciena generates about US$5.57b in revenue, with roughly US$4.41b from Networking Platforms, US$681.06m from Global Services, US$370.58m from Platform Software and Services, and US$105.35m from Blue Planet Automation Software and Services.

Market Cap: US$65.22b

Ciena is positioned at the core of the physical and software infrastructure that quantum and AI projects operate on, which aligns with US government plans to fund quantum technology and secure networks. Recent work on quantum safe long haul links, AI focused tools such as Blue Planet CCM, and large cloud and telecom projects indicate demand tied to AI and high speed data center traffic. At the same time, the stock trades on a very high P/E, relies on a concentrated set of large customers, and uses external borrowing and convertible notes that introduce funding and dilution risk. For investors, an important consideration is whether that mix of AI and government backed demand is sufficient to justify Ciena’s growth narrative and margin ambitions.

Ciena’s AI and quantum ready networks sit at the intersection of big spending plans and a very high P/E, which raises a clear question: what are investors really pricing in around its analyst forecasts for Ciena?

Daqo New Energy (DQ)

Overview: Daqo New Energy manufactures high purity polysilicon in China, supplying a key raw material that solar manufacturers use to produce ingots, wafers, cells, and modules for solar power solutions.

Operations: Daqo New Energy generates about US$568.22m in revenue from polysilicon sales in the People's Republic of China.

Market Cap: US$0.84b

For investors watching quantum and advanced computing supply chains, Daqo New Energy sits at an interesting crossroads, with cost-disciplined polysilicon production, Chinese regulatory efforts to curb below-cost selling, and a new Kunshan manufacturing base planned for AI data centers and solid-state components. At the same time, the company is wrestling with heavy losses, reliance on supportive policy, and exposure to prolonged oversupply in solar materials. Forecasts for revenue growth, a share price that sits below some valuation estimates, and the potential for its energy and materials footprint to matter more as US and global governments focus on secure compute infrastructure mean that Daqo is a stock where the full risk-reward picture may warrant closer attention.

Daqo New Energy’s AI data center ambitions and polysilicon footprint could be masking a very different future. See how the full risk reward trade off stacks up in the analysis report for Daqo New Energy

The three stocks covered above are just a starting point, and the full Quantum Computing and Advanced Computing Stocks screener surfaced 45 more companies with equally compelling stories around advanced computing, capital strength, and risk profiles. Use Simply Wall St to identify and analyze the specific catalysts and narratives that matter to you, so you can filter this broader group down to the highest conviction ideas.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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