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Key Points
Investors flocked to artificial intelligence (AI) stocks last year, which drove market gains and led major indices like the S&P 500, the Nasdaq Composite, and the Dow Jones Industrial Average higher. Today, these players continue to advance, joined by certain stocks in the high-potential field of quantum computing.
Quantum computing stocks might be following in the footsteps of AI stocks, becoming the next industry to lead market gains, and here's why.
Why AI became so popular
AI has captured global attention due to its revolutionary potential in transforming processes—from business operations to daily activities—by enhancing efficiency. Companies like Nvidia, Broadcom, Amazon, and Meta Platforms have witnessed their shares surge as they power AI infrastructure or develop AI platforms for their businesses.
AI continues to be an intriguing growth story. However, quantum computing, despite being earlier in its growth story, promises to be a game changer. It's based on quantum mechanics' principles, processing data through qubits, which can solve issues beyond the scope of classic computers.
D-Wave's record quarter
Several pure-play companies are working toward making quantum computing viable for real-world problems. For example, D-Wave Quantum recently launched the Advantage2 quantum computer, seeing revenue soar 500% to a record $15 million in the recent quarter. Although companies like D-Wave, Rigetti Computing, and IonQ are generating revenue, quantum computing has yet to realize its full potential.
Though quantum computing faces challenges, such as fragile qubits and error rates, it could offer significant returns over time if successful.
Should you invest in quantum computing stocks?
For aggressive investors seeking the next big thing in technology, shares in leading companies could be considered. Cautious investors might look at established tech giants with quantum programs, such as Alphabet or Microsoft.
Quantum computing’s success is not guaranteed, but progress and strong potential suggest it could mirror AI's rise by 2025 and elevate the overall market.
This article has been published in fool.com via Yahoo News.
