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The Quantum and AI Breakthrough: Key Stocks Leading the Charge
The AI Investing Pulse
December 12th, 2024
In this week’s edition:
Analysis - The Quantum and AI breakthrough: Key stocks leading the charge.
Stock Ideas - Is SoundHound AI on the path to transforming industries?
News - AI’s growth is just getting started, BlackRock says.
Trends - Nvidia experts share their predictions for 2025.
Other News - Can AI predicts the next stock market crash?
The Quantum and AI Breakthrough: Key Stocks Leading the Charge
This week, we’re diving into one of the most exciting and transformative advancements in technology: quantum computing and its game changing impact on AI. With groundbreaking developments like Google’s Willow chip making headlines, it’s clear that quantum computing is not just the future, it’s happening now. We’ll explore its impact, challenges and the key players driving this revolution.
What Is Quantum Computing?
Quantum computing is a revolutionary technology that processes information in fundamentally new ways. Unlike classical computers, which handle data in binary steps (1s and 0s), quantum computers use qubits to perform multiple calculations simultaneously. This capability allows quantum systems to tackle highly complex problems at speeds unimaginable for traditional machines.
How Quantum Computing Transforms AI
Quantum computing has the potential to revolutionise artificial intelligence by overcoming key limitations such as speed and scalability. Tasks like training AI models and analysing massive datasets, which currently take weeks, could be completed in hours or minutes. This is already driving breakthroughs in fields such as drug discovery, where quantum systems can simulate molecular interactions to accelerate treatments. By enhancing AI, quantum computing is redefining what these technologies can achieve.
The Challenges and Risks
Despite its promise, quantum computing faces significant challenges. Ultra-cold environments are needed for quantum systems, consuming vast energy and raising sustainability concerns. Their ability to break encryption poses cybersecurity risks unless quantum-resistant cryptography is developed. Many practical applications remain theoretical, with widespread use still years away. Responsible development is critical to unlocking its long-term potential.
Key Stocks Leading the Charge
Small Pure-Play Quantum Stocks
D-Wave Quantum Inc. (QBTS): A leader in annealing quantum computing, with stocks up over 300% year to date.
Rigetti Computing Inc. (RGTI): Scaling quantum solutions with its Quantum Processing Unit, with stocks up 650% in 2024.
IonQ Inc. (IONQ): Specialising in trapped-ion technology, with stocks rising over 140% this year.
Quantum Computing Inc. (QUBT): Targeting finance and defence, with stocks increasing nearly 600% this year.
Large Diversified Quantum Stocks
Alphabet Inc. (GOOGL): Willow chip breakthrough demonstrating quantum supremacy.
IBM (IBM): A pioneer with its 127-qubit Eagle processor.
Microsoft (MSFT): Combines quantum and cloud computing through Azure Quantum.
Amazon (AMZN): Supports quantum research via AWS Braket.
NVIDIA (NVDA): Advances AI with quantum simulations and hybrid systems.
The Future of Quantum Computing and AI
Quantum computing is moving from science fiction to transformative reality, redefining industries such as healthcare, logistics, and energy. With its potential to accelerate AI and solve previously unsolvable problems, it is clear why quantum computing is attracting attention. As the technology evolves, both niche innovators and tech giants are exploring its possibilities, making quantum a space to watch as it fuels growth and innovation.
TOP AI STOCKS
COMPANY | SECTOR | WEEKLY |
|---|---|---|
SoundHound AI (SOUN) | Technology | 33.50% |
Tesla (TSLA) | Consumer Cyclical | 18.67% |
Verint Systems (VRNT) | Technology | 17.37% |
TOP AI ETFs
COMPANY | SECTOR | WEEKLY |
|---|---|---|
Themes (WISE) | GenAI & Tech | 2.11% |
Global X (AIQ) | AI & Tech | 1.18% |
KraneShares (AGIX) | AI & Tech | 0.30% |
WEEKLY AI STOCKS IDEAS
Is SoundHound AI on the path to transforming industries? - SmartP
Three energy stocks to keep an eye on - The Motley Fool
Zacks 5 AI investment ideas - Yahoo Finance
AI STOCKS & ETFs NEWS
AI’s growth is just getting started, BlackRock’s thematic ETF head says - CNBC - They expect infrastructure and cybersecurity plays to shine in 2025.
Meta joins Amazon and Google in nuclear power push for AI - Yahoo Finance - According to a Grid Strategies LLC report, U.S. electricity demand is being driven by the rising adoption of AI and a broader push for carbon-free energy.
Buy the dips in software and chips, as UBS says the AI growth story is far from over - Investing.com - UBS believes the dips should be used to buy quality artificial intelligence stocks, particularly within the semiconductor and software segments, as the AI growth story is far from over.
AI STARTUPS
AI-powered data security startup Cyera closed a $300m series D led by Accel and Sapphire Ventures - crunchbase news - The deal tied Cyera for the biggest raise by a startup playing at the intersection of two of venture capitalists’ favourite industries: AI and cybersecurity.
AI’s race to value: A conversation with Abridge, Anthropic, Perplexity, and Scale AI - Bessemer Venture Partners - When we asked top CEOs about the state of the AI market, one sentiment rang clear: “It’s still so early.”
AI TRENDS
2025 Predictions: Nvidia experts share their views for 2025 - Nvidia - NVIDIA experts across accelerated computing, data science and research predict multimodal models will speed industry innovation and efficiency.
Cybersecurity trends for 2025: The AI arms race continues - Rappler - US cybersecurity firm Fortinet on Tuesday, December 10, presented to the media their annual threat predictions report for 2025.
The future of AI agents belongs to Amazon - AIM - Bezos: “You have to remember modern AI is a horizontal enabling layer. It can be used to improve everything; it will be in everything. This is most like electricity”.
5 investing trends for 2025 - Yahoo Finance - From conflicts and geopolitics to energy and AI trends.
OTHER
Can AI predict the next stock market crash? - TechBullion - AI has transformed how traders and investors manage their activities. Through automated or algorithmic trading, users easily manage positions.
Agentic AI in legal: What it is and why it may appear in law firms soon - Reuters - Since the introduction of generative artificial intelligence (GenAI) into the legal sphere, many law firm leaders have pondered what legal teams of the future will look like.