The Battle for Tech Supremacy: Quantum Computing vs. AI
Wall Street’s Latest Obsession: Quantum Computing
The buzz around quantum computing has reached a fever pitch on Wall Street, with Alphabet’s recent milestone achievement sparking a rally in quantum stocks. The tech giant’s new quantum chip, Willow, boasts exponential error reduction as it scales up, performing a standard benchmark computation in just five minutes that would take the world’s fastest supercomputers 10 septillion years. This breakthrough has sent shares of small-cap pure-play quantum computing stocks like D-Wave Quantum, Quantum Computing, Rigetti Computing, and IonQ soaring.
A Reality Check from Tech CEOs
However, not everyone is convinced of quantum computing’s imminent impact. Nvidia CEO Jensen Huang and Meta Platforms CEO Mark Zuckerberg have expressed skepticism, citing a 15-30 year timeline for “very useful” quantum computing. Even former Cisco Systems CEO John Chambers believes quantum computing is still in its infancy. Despite this pushback, quantum stock leaders are defending their technology and businesses.
The Reality of Quantum Computing Stocks
Investors should be aware that quantum computing is still an emerging technology, with companies like Quantum Computing, D-Wave Quantum, and Rigetti Computing generating almost no revenue. IonQ, the largest of the four quantum stocks, has a market cap of $9 billion, but its 2024 guidance calls for just $38 million to $42 million in revenue. This means investors are betting big on the stock’s potential.
AI: The More Deserving Investment
In contrast, AI is already disrupting industries and growing rapidly. AI stocks have more room to run, making them a more attractive investment opportunity. Two AI stocks worth considering are Micron Technology and TSMC.
Micron Technology: Riding the AI Wave
Micron Technology, a supplier of memory chips, is seeing a surge in demand from AI applications. Revenue in its fiscal first quarter jumped 84% to $8.7 billion, with data center revenue increasing over 400% year-over-year. The company’s close working relationship with Nvidia, its biggest customer, adds to its appeal. With a forward P/E of 14, Micron’s stock looks cheap for its growth potential.
TSMC: The Linchpin of the Global Economy
TSMC, the world’s largest contract chip manufacturer, is a must-have in 2025. With a market share of over 50% in third-party chip manufacturing and roughly 90% in advanced chips, TSMC is poised to benefit from growing AI demand. The company’s revenue growth came in at 38% in the fourth quarter, with an operating margin nearly reaching 50%.
Don’t Miss the Boat: Invest in AI Today
If you’re worried about missing out on the most successful stocks, now is the time to invest in AI. Our expert team of analysts has identified three incredible companies that are about to pop. Don’t wait – see the 3 “Double Down” stocks today!
Leave a Reply