Investors looking for the next big technology trend may want to keep an eye on quantum computing stocks. Shares of Google soared on Tuesday after the company announced the release of its Willow chip, which it said would “reduce errors exponentially as we scale with more qubits” and perform better than its predecessor in 2019 . Qubits, or qubits, are the units used to encode data in such computers. GOOGL 5D mountain Alphabet surged for a second day after the launch of Willow. Parent company Alphabet touted the news as a major victory for quantum computing. The search giant’s shares rose 4% on Wednesday, after rising nearly 6% in the previous session. Google’s breakthrough boosted other quantum computing stocks, including lesser-known contender Rigetti Computing. Shares soared to new highs on Wednesday after soaring 45% on Tuesday. The stock is up more than 550% year to date, but was hovering near the flat line in midday trading. Optimism about the sector also sent the Defiance Quantum ETF up about 2% on Tuesday. This year’s top performers include MicroStrategy and D-Wave Quantum, which are up 538% and 355%, respectively. Shares of Nvidia, Coherent, IonQ and RadNet more than doubled. Quantum computing is not a new phenomenon, but it is becoming increasingly important as more and more data are processed to train large language models. At the same time, investors are eager to participate in the next generation of generative artificial intelligence. Ever since ChatGPT kicked off the artificial intelligence craze two years ago, investors have been looking for the next batch of stocks to benefit from the technology’s growth. Eric Jackson of EMJ Capital called it “the next big theme” in a post on social media platform While the theme has long-term potential, Harvest Portfolio Management’s Paul Meeks warned investors not to get caught up in the excitement of rising stocks, noting that real-world use cases are still years away. He said people looking to participate in this theme should consider investing in large technology companies with other core areas. “For Alphabet, it’s great because it’s a call option on an existing high-quality business, but for other pure-play businesses, if they get pushed too high, they could become Short. He said the stock price setup for RGTI YTD this year bears similarities to late 2022, when Nvidia players rose to C3.ai. However, as time goes on, early leaders in the industry are emerging. You need to see use cases, and use cases that can be monetized,” he said. “I like technological advancements, but I wouldn’t put much of a valuation lift on any of them based on this announcement alone.”
Wall Street’s New Hot Trade: Quantum Computing Stocks | Real Time Headlines
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