Quantum Computing Will Revolutionize Technology: 5 Stocks in Mind


Conventional computers have been making work easier since the 1950s, but the enormous amounts of data that accumulate every day require something much faster. Although quantum computing is still in its infancy, it has great long-term promise, especially in the areas of artificial intelligence, machine learning, and gene editing. Unlike traditional computers that use bits – just one or zero, quantum computers take it to the next level by using quantum bits or qubits – a zero, a one, or both values ​​at the same time.

Quantum computing has the ability to perform various types of computations at a higher speed, taking advantage of quantum mechanical phenomena. These new age computers use quantum tunneling and quantum entanglement to create multidimensional spaces and solve complex problems. Quantum computers can create multidimensional spaces to represent very large problems. Users can employ algorithms that in turn use quantum wave interference to find solutions in this multidimensional space and translate problems into understandable forms.

Tech bigwigs invest millions of dollars each year to win the race in developing quantum computing hardware and software infrastructure. And why not? The ease of use of this new computer age is as great as the concept itself. It can enable the new generation of electric vehicles through quantum battery technology, facilitate the reduction of atmospheric carbon emissions with the help of quantum computer-assisted materials research, and help with space travel and the discovery of the origins of the universe.

According to the Manomet Current article, the global quantum computer market is expected to reach $ 1,765 million at a CAGR of 30.2% by 2026, up from $ 472 million in 2021. With numerous applications in logistics, military, pharmaceuticals , Aerospace, Utilities, and Digital Manufacturing Technology has “quantum” space to grow. The banking and finance sectors are already adopting this technology and will fuel quantum computing-as-a-service (QCaaS) growth after the pandemic.

While it is still difficult to run into pure quantum computing companies, bigwigs like IBM, Intel and Alphabet Inc. Googl invests in quantum computing to provide opportunities for many startups, end-to-end solution providers, hardware companies (who deal in photonics, trapped ions, superconducting materials, and semiconducting materials), software companies, and research laboratories.

D-Wave, a privately held Canadian quantum computing company, has raised $ 216 million in funding over 19 rounds since its inception in 1999. Rigetti Computing, another quantum integrated circuit developer, has raised $ 198.5 million in nine rounds. Rigetti has developed a cloud platform called Forest that enables programmers to write quantum algorithms.

5 stocks to watch out for

Given the current rate of growth in quantum computing, a report by McKinsey & Partners estimates the technology’s global market value will reach $ 1 trillion by 2035. In fact, analysts believe there could be anywhere from 2,000 to 5,000 quantum computers globally by 2030. With prospects like this, we’ve shortlisted five stocks that investors can tap to capitalize on quantum space.

NVIDIA Corporation NVDA is a visual computing company. This chip manufacturer launched cuQuantum SDK, a development platform for simulating quantum circuits on GPU-accelerated systems. The company’s expected earnings growth rate for the current year is 58.8%, compared to Zacks Semiconductor – General Industry’s forecast earnings growth of 25.4%.

The Zacks consensus estimate for the company’s current year has been revised up 16.7% over the past 60 days. Nvidia has a Zacks Rank # 1 (strong buy). You can see the full list of current Zacks # 1 Rank stocks here.

alphabet Google’s quantum computer found a solution that could have real application by successfully simulating a simple chemical reaction. The company expands its horizons in quantum chemistry, helping scientists understand molecular reactions, leading to better batteries, new ways to make fertilizers, and improved methods of removing carbon dioxide from the air.

The company’s forecast earnings growth rate for the current year is 53.1%, compared to the forecast earnings growth for the Zacks Internet Services industry of 6.7%. The Zacks consensus estimate for the company’s current year has been revised upwards by 0.5% over the past 60 days. Google flaunts Zack’s # 2 rank (Buy).

Accenture plc ACN is experimenting with cloud-based and hybrid quantum computing, and Accenture Labs is partnering with Biogen to use quantum computing to accelerate drug discovery. The projected earnings growth rate for this No. 2 Zacks company for the current year is 17.6%, compared to the projected earnings growth of 15% for the Zacks Consulting Services industry. The Zacks consensus estimate for the company’s current year has been revised up 3.4% over the past 60 days.

of Microsoft Corporation The MSFT Quantum team innovates at every level of the quantum stack, from software and applications to controls and devices, and pursues the pursuit of fault-tolerant topological qubits that can be scaled into a universal quantum computer. The company’s projected earnings growth rate for the current year is 35.4%, compared to the projected earnings growth of 1.8% for the Zacks computer software industry. The Zacks consensus estimate for the company’s current year has been revised up 5.8% over the past 90 days. Microsoft has a Zacks rank of # 3 (Hold).

from Amazon.com, Inc AMZN Amazon Braket is a fully managed quantum computing service that helps researchers and developers get started with the technology to accelerate research and discovery. The projected earnings growth rate of this No. 3 Zacks company for the current year is 37%, compared to the projected earnings growth of 16% for the Zacks Internet Commerce industry. The Zacks consensus estimate for the company’s current year has been revised up 1.9% over the past 60 days.

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The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.

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