Quantum computing isn’t as well known as artificial intelligence (AI), but a small group of these stocks has generated astounding returns in just a year or two.

These companies are trying to build and commercialize the next innovation of the computer. Instead of using bits, the most basic unit of digital information and the foundational component of the computer, quantum computers use qubits that can process data in much more complex ways, allowing these machines to compute much more complicated equations.

If researchers are correct, quantum computers will be able to play instrumental roles in developing new and more effective drugs and tackling some of the biggest problems in society like climate change, which would obviously send these stocks to multiples of what they are today. While there is still much to achieve and certainly associated risks, here are two quantum computing stocks up at least 2,200% to throw $200 at.

Image source: Getty Images.

Rigetti Computing: Up 2,847% in past year

Yes, you read that correctly: Rigetti Computing (RGTI 0.52%) is up over 2,800% (at the time of this writing) in just one year. Perhaps due to the artificial intelligence revolution, investors have noticed the quantum computing space and started to believe these machines are not only possible, but can live up to the hype.

To really understand how quantum computers work, you need to be well versed in quantum mechanics, but Rigetti builds its machines in house with superconducting qubit-based quantum processors that are highly scalable and offer both fast gate times and fast program execution times. In July, Rigetti announced that its 36-qubit system had achieved 99.5% median two-qubit gate fidelity, which is a strong measure of accuracy. The company also said this system achieved a 2 times reduction in its median 2-qubit gate error rate from its previous best results.

Rigetti believes these results will pave the way for it to build and release a quantum computer with over 100 qubits (the more qubits, the more powerful the system) and similar accuracy before the end of the year.

Rigetti also just announced that it has been awarded a three-year contract from the Air Force Research Laboratory for $5.8 million. Rigetti will partner with a Dutch quantum start-up to work on developing advanced superconducting quantum networking, which would essentially be the next evolution of the internet with capabilities that could include functions like sending communication that can’t be hacked.

While Rigetti has a high ceiling, investors should understand that the company still makes very little in revenue, is losing money, and trades at a $7.8 billion market cap. So if things don’t go as planned or quantum computers turn out to be difficult to develop or do not live up to the hype, the stock could get hit hard.

D-Wave Quantum: Up 2,278% in past year

D-Wave Quantum (QBTS 0.51%) is another quantum computing stock that has been a moonshot over the past year. D-Wave differs from others in the quantum computing space because it uses annealing quantum computing technology, which uses concepts from quantum physics to identify the most precise solution in a more energy-efficient manner.

In a J.P. Morgan report on quantum computing, analysts praised D-Wave’s Advantage2 prototype, which has over 1,200 qubits with 20-way connectivity, and a goal to eventually build a system with 7,000 qubits.

“This prototype claims significant speedups over classical supercomputers,” the report said. “Developed with a lower-noise, multilayer superconducting integrated circuit fabrication stack, the Advantage2 prototype demonstrates substantial performance gains on hard optimization problems, such as spin glasses, and shows improved performance on constraint satisfaction problems. … However, (D-Wave’s) approach is limited to specific problem types, and they face debates about the broader applicability of quantum annealing.”

Clearly, the potential for D-Wave is there and it could even stand out in a standout industry. But like Rigetti, the company still doesn’t have much revenue and is reporting losses, while trading at a $7.85 billion market cap.

Investing is all about trying to predict the future before it becomes the present, so I understand to some degree why investors are gung-ho about quantum computing. But investing is also about future risk management. That’s why I still only recommend a smaller, more speculative position in quantum computing stocks, whether that’s a few hundred dollars or a few thousand. It all depends on your specific financial profile.