Quantum computing advances boost tech stocks, potential investments in AI sector.

From Nasdaq: 2025-01-19 11:20:00

Quantum computing is making waves on Wall Street as Alphabet reported a breakthrough with its new quantum chip, Willow. The chip can perform computations in just five minutes that would take a supercomputer 10 septillion years. This news has sent quantum stocks soaring, including D-Wave Quantum, Quantum Computing, Rigetti Computing, and IonQ. Despite pushback from tech CEOs, leaders in the quantum industry are defending the technology. However, AI may be a more promising investment due to its current presence and growth potential.

In the tech sector, Micron Technology is experiencing a surge in demand from AI, with revenue jumping 84% in the first quarter, driven by strong AI demand in the data center. TSMC, the world’s largest contract chip manufacturer, is another AI stock to watch, with revenue growth of 38% and an operating margin of nearly 50% in the fourth quarter. Both companies offer potential for investors, with Micron’s stock trading at a low forward P/E and TSMC set for continued growth in 2025.



Read more at Nasdaq: Quantum Computing vs. Traditional AI: Which Tech Stocks Are Must-Haves in 2025?