Computers have changed almost every aspect of everyone’s lives, and quantum computers will do the same in the coming years. Breakthroughs in a new theme for the tech sector—quantum computing—are taking investors by surprise with how quickly they are being developed and are now making the rounds in the media as the first machines are up and running. The question is, what does this mean for the future and who is in this amazing race to the next frontier?
The answer: anyone interested in cybersecurity, artificial intelligence, or even economics. Those who don’t want Silicon Valley to become the next rust belt will need to step up their development efforts, so investors should keep today’s list close to their chests for years to come. This can make a significant difference to their financial future.
Stocks involved in this new revolution include names such as Alphabet Inc. NASDAQ: GOOGLE, Microsoft Company NASDAQ: MSFTand even Amazon.com Inc. NASDAQ:AMZNand it is these stocks that will form the basis of today’s list. However, the challenge for investors now is to figure out which stocks in the side chain of supply and development will also be called upon to help in the quantum computing revolution, so there’s one more worthy mention at the end.
How does quantum computing even work?
These computers run on more than just transistors and semiconductors, which is how modern computers work. Quantum computers run on atoms, and this is what gives them superiority over anything investors know today; since atoms can be in multiple places at once, these computers can perform endless calculations and simulations simultaneously.
Alphabet today
(As of December 16, 2024 ET)
- 52 week range
- $130.66
▼
$199.00
- Dividend yield
- 0.41%
- P/E ratio
- 26.08
- Target price
- $206.08
This is what some in the industry call “quantum supremacy,” something Google has already achieved breakthroughs in. In early November 2024, they announced their own computer called Willow. Most investors overlook the fact that energy needs To keep running and growing, these computers will be another major trend in this race.
This gives Google a unique opportunity to stimulate not only the development of quantum computing, but also the supporting infrastructure needed to support these systems. Their ability to innovate in energy management and scalable computing solutions has the potential to redefine industry standards and open up new revenue streams.
Amazon.com today
(As of December 16, 2024 ET)
- 52 week range
- $144.05
▼
$233.00
- P/E ratio
- 49.88
- Target price
- $240.67
This is why Amazon is investing in nuclear power because it is linked to quantum computers for more than just an energy source. Since these computers perform calculations on atoms, and nuclear power is based on the same fundamental concepts, the problem of scaling and commercializing nuclear power can be solved in the near future.
Amazon’s investment represents a strategic bet on the convergence of quantum computing and nuclear power. If breakthroughs in atomic-level control powered by quantum computing make their way to nuclear power, it could transform the way electricity is produced and managed, positioning Amazon as a pioneer in both industries.
Microsoft today
(As of 12/16/2024 5:53 PM ET)
- 52 week range
- $366.50
▼
$468.35
- Dividend yield
- 0.74%
- P/E ratio
- 37.26
- Target price
- $505.43
Then there is the corporate and economic decision. While Microsoft has revolutionized the world of finance with its Office software suite, its developments in quantum computing have the potential to solve the most complex financial problems and theories on the market. This is the type of software that every major financial services firm will want to have access to.
This could usher in a new era of financial technology where quantum analytics will redefine risk assessment, portfolio optimization and real-time market forecasting. Microsoft’s advances in quantum computing could become indispensable tools for global financial institutions, driving demand for advanced financial software solutions.
Wall Street knows the potential of this trend, which is why it maintains a double-digit growth forecast for these stocks. As for Google, Pivotal Research maintained a Buy rating, insisting on a $225 share price target today, implying there is upside potential of up to 17% from today’s share price.
When it comes to Amazon, some institutions are running short of stock. As of November 2024, Geode Capital Management, Franklin Resources and Toronto Dominion Bank increased their holdings in Amazon stock by year-end. And that makes sense, as TD Cowen analysts now see the price rising to $265 per share, up 15.5% from today’s price.
Honorable mention in this race
Intel today
(As of December 16, 2024 ET)
- 52 week range
- US$18.51
▼
$51.28
- Dividend yield
- 2.40%
- Target price
- $30.04
Recently, promotions Intel Company NASDAQ: INTK may have appeared on the radar of several investors not only because of how low it is trading today, 40% of its 52-week high, but also because the broader markets are poised to value it in the same way as other rivals according to valuation multipliers. .
This article will explore the many reasons why this valuation situation may turn out to be this way, but investors need to focus on the main question for Intel. Quantum computing isn’t just a race in the United States; the whole world is developing this technology, so keeping this intellectual property in-house will be key.
That’s where Intel stock comes into play, as the company is rapidly expanding its wafer and semiconductor manufacturing presence in Arizona and Ohio, while also receiving the bulk of government grants to do so. In terms of securing the country’s place in this race, it looks like Intel stock is worth paying attention to today.
Wall Street analysts would agree. They currently have a price target of $30 per Intel share, suggesting upside potential of up to 50% from today’s decline.
Before you consider Amazon.com, you should hear this.
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