Some folks might pigeonhole Arqit Quantum (NASDAQ:ARQQ) as a cybersecurity firm. However, there’s a whole other angle here, as Arqit has a powerful product, QuantumCloud, which deploys quantum computing technology. It’s a highly specific niche product, but Arqit is already successfully commercializing QuantumCloud. Therefore, ARQQ stock could be a buy-and-hold with strong upside potential.
With a credo of “Stronger, simpler encryption,” you might be tempted to assume that Arqit Quantum is another cybersecurity company. There are plenty of businesses in this competitive field already. So, what makes Arqit special?
The answer is quantum computing, or more specifically, QuantumCloud. This quantum encryption technology product has already helped Arqit secure some notable clients — including one that will deploy QuantumCloud in space, believe it or not.
ARQQ Stock Provides Affordable Quantum Computing Exposure
The good news is that you don’t need to be a scientist or a mathematician to invest in ARQQ stock. Heck, you don’t even need a boatload of cash, as the shares cost less than $6 apiece at the time of writing.
It’s important to know what you’re investing in, though. Arqit Quantum has one product, but it’s a real gamechanger. It’s called QuantumCloud, and its “enables any device to download a lightweight software agent of less than 200 lines of code, which can create encryption keys in partnership with any other device.”
In other words, QuantumCloud leverages ultra-powerful quantum computing to provide speed and interoperability. Moreover, security is enhanced as “The keys are computationally secure, one-time use and zero trust.”
The company introduced QuantumCloud Release 1.0 with full commercialization last year, and already has contracts and agreements with multiple companies. These include BT Group plc., Sumitomo, Northrop Grumman (NYSE:NOC) and Juniper Networks (NYSE:JNPR).
Arqit Quantum Has a Contract With Virgin Orbit
Yet another client is Richard Branson’s space launch company, Virgin Orbit (NASDAQ:VORB). Branson’s company has licensed Arqit’s QuantumCloud to protect Virgin Orbit’s launch and space solutions businesses.
On top of that, Arqit Quantum has “contracted exclusively with Virgin Orbit for Arqit’s launch needs which might result from expected new government sales.” Virgin Orbit CEO Dan Hart expressed excitement that QuantumCloud could help keep his company’s missions and customers safe.
Moreover, Virgin Orbit has reportedly announced a $5 million investment in Arqit Quantum shares. Clearly, Virgin Orbit isn’t just a partner but a true believer in Arqit Quantum.
What You Can Do Now
You just never know where you might see Arqit’s quantum encryption technology next — possibly even beyond the Earth’s orbit. Yet, Virgin Orbit is just one of multiple clients that can provide Arqit Quantum with essential revenue streams.
So, you might want to consider scooping up a few shares of ARQQ stock while they’re still affordable. You’ll get exposure to the cybersecurity field, along with quantum computing at the same time — and an intriguing tech-niche leader with Arqit Quantum.
On the date of publication, David Moadel did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.