Three Notable AI Stocks Ready to Lead the Quantum Computing Upheaval
Getting to the Heart of Quantum Investments
Are you dreaming about diving into quantum computing investments? You're probably already aware of the buzz surrounding companies like IonQ, Rigetti Computing, or D-Wave Quantum. While these names may be promising, the road to profit isn't always straightforward in this unpredictable, nascent market.
If you're after a safer way to get in on the quantum computing revolution while still mitigating risk, then take a closer look at the "Magnificent Seven." Among these seven major players, Amazon, Microsoft, and Alphabet are trio of strong candidates.
Navigating the Quantum Maze
Over the past six months, IonQ, D-Wave Quantum, and Rigetti Computing have all seen gains, but sustaining these prices may be challenging. These companies don't produce much in the way of revenue, and further financial injections may be needed to keep them afloat [source]. Profits from such speculative stocks may depend more on luck than any real investment strategy.
Moreover, Nvidia CEO Jensen Huang recently stated that it's unlikely we'll see useful, scalable quantum computing applications for another 20 years [source]. Given this outlook, it's not a smart move to invest in a small company with low sales and a shaky path to profitability.
Instead, consider exploring established businesses with established sales streams that can invest their earnings into quantum computing.
1. Amazon
In classical computing, binary code — essentially zeros and ones — is known as classical bits. Quantum computing, on the other hand, relies on quantum bits, or qubits, which can exist in multiple states at once. This unique property allows quantum computers to potentially solve complex problems much faster than today's most advanced supercomputers.
The challenge with quantum computing is dealing with the errors that occur due to qubits being sensitive to external factors such as vibrations or heat. Traditionally, the solution has involved integrating more qubits into algorithms to suppress errors in calculations. However, this solution comes at a high cost [source].
Amazon's new chip, Ocelot, may help revolutionize the field by reducing the costs of implementing quantum error correction by up to 90% [source]. By addressing this fundamental challenge, Amazon could bring quantum computing closer to affordability, potentially overcoming one of its most significant hurdles. If successful, Amazon could layer this service underneath Amazon Web Services (AWS), further accelerating demand for the company's cloud infrastructure.
2. Microsoft
Microsoft's Majorana 1 quantum chip takes a different approach, employing a topological qubit architecture. This architecture makes topological qubits more reliable and scalable than traditional qubits [source], as they are less susceptible to external forces.
The topoconductor, a piece of hardware that is "designed to scale to a million qubits on a single chip" [source], is still in prototype stage. However, investing in Microsoft today may offer a chance to join the quantum computing wave early on.
3. Alphabet
Google Quantum recently unveiled its Willow quantum computing chip, which outperformed today's most powerful supercomputers by solving a benchmark problem in just 5 minutes that would take them 10 septillion years [source]. This demonstrates Willow's incredible processing power.
While practical applications for quantum computing are still a ways off, it's clear that the technology will become essential for AI applications as they advance, especially in fields like medicine and financial services. Quantum computing could play a significant role in areas such as analyzing clinical trial data [source] and improving security protocols in the financial sector, where fraud has become increasingly prevalent.
Spinning the Quantum Wheel
The common thread tying Amazon, Alphabet, and Microsoft together is their diverse ecosystems — they're not one-trick ponies. Each company operates in areas ranging from e-commerce to cloud computing, streaming, social media, and advertising [source].
These companies have already shown a commitment to AI, hinting at a promising future of accelerated revenue growth and widening profit margins.
Quantum computing, though still a theoretical component of the AI narrative, may represent another layer in the broader AI foundation. Investing in these companies could enable you to tap into quantum technology down the line, solidifying their positions as long-term winners in the AI revolution.
- In the realm of quantum computing, Amazon's ambitious Ocelot chip is poised to revolutionize the field by reducing the costs associated with quantum error correction by up to 90%.
- Microsoft's Majorana 1 quantum chip adopts a topological qubit architecture, making its qubits more reliable and scalable than traditional ones.
- Google Quantum's recently unveiled Willow chip showcases impressive processing power, outperforming current supercomputers by solving a benchmark problem in just 5 minutes that would take them 10 septillion years.
- Investing in companies like Amazon, Microsoft, and Alphabet, each with a diverse ecosystem ranging from e-commerce to cloud computing, streaming, social media, and advertising, may offer an opportunity to tap into quantum technology as it becomes integral to AI advancements.
