Why Invest in AI and Quantum Tech?
Investors are always on the hunt for the next big thing. We’ve seen how the Internet transformed our lives, smartphones took over, and social media created new opportunities for profits in recent years. Now, the spotlight is on two promising areas: artificial intelligence (AI) and quantum computing. While AI is already making waves in everyday applications, quantum computing is gearing up to solve problems that current supercomputers can’t tackle.
Let’s take a closer look at three stocks you might want to consider as this tech revolution unfolds.
1. IonQ
IonQ(NYSE: IONQ) stands out as a dedicated quantum computing company. This focus allows IonQ to build specialized expertise that broader tech firms may lack, although it does bring some risks since their success relies solely on quantum tech—which is still in its infancy.
For aggressive investors willing to embrace these risks, IonQ presents a potentially thrilling opportunity. The company employs trapped ion technology, which may offer better accuracy over the more widely-used superconducting methods, even if it operates somewhat slower. Currently, IonQ generates around $20 million per quarter by providing access to its quantum systems via cloud service providers and offering consulting services.
In the past year, IonQ’s stock has skyrocketed over 400%, and should the company s d in advancing quantum computing, there’s plenty of room for even more growth.
2. Microsoft
You might not associate Microsoft(NASDAQ: MSFT) with quantum computing right away, as their reputation is often built upon software solutions. However, this industry giant has been broadening its arms into everything from social media—thanks to LinkedIn—to advances in AI and quantum systems.
Microsoft recently announced that its Majorana 1 chip employs unique materials that enhance particle control, optimizing the qubits needed for quantum computations. Additionally, they launched a program to help businesses step into this innovative realm—providing them access to the tools and knowledge necessary to thrive.
This makes Microsoft a low-risk quantum investment, benefitting from its solid earnings from well-established business sectors even as it ventures into newer technologies.
3. Nvidia
Nvidia(NASDAQ: NVDA) covers both AI and quantum computing, making it a dual-force contender. Starting with AI, Nvidia dominates the AI chip market, leading to skyrocketing revenues. With continuous forecasts encouraging further investments in AI infrastructure, the company is set to maintain this growth trajectory.
Not only does Nvidia sell chips, but it also offers a comprehensive array of products and services to support businesses on their AI journey. This fully integrated system has been key to Nvidia’s success, with plans to upgrade chips each year fueling future growth.
Interestingly, Nvidia is also making waves in quantum computing, exploring how AI can improve the process, such as applying it to error correction. Their new quantum computing research center aims to unite Nvidia’s AI chips with quantum hardware in a bid to speed up tech advancements.
Similar to Microsoft, Nvidia presents an attractive choice for risk-averse investors thanks to its consistent earnings growth—although it also taps into future quantum tech potential.
Consider Your Investment Options Carefully
Before diving into any stock purchases, especially IonQ, it’s wise to do your homework. Notably, analysts suggest considering some of the top stocks around before hitting the buy button, as they may provide more guaranteed growth over time.
The Motley Fool analysts identified some stocks that are making waves, with a full rundown available upon joining their service.
