Some quantum IT actions provided earnings of more than 1,000% last year.
Technology has revolutionary potential and quantum companies can prosper if the economic backdrop is favorable.
10 actions that we love better than the quantum D-Wave ›
Quantum IT stocks skyrocketed in 2024, with names such as Quantum calculation And Calculation rejection increase by more than 1,000%. Investors were impatient to embark on what could become the next technology that changes the situation, and the growth of income as well as the scientific progress of some of these quantum specialists have strengthened optimism.
Even after these earnings, it is very possible that quantum stocks climb to the second half of this year, and here is why.
Image source: Getty Images.
So, first, a rapid note on the reasons why investors see as much potential in quantum computer science. Indeed, this type of computer, based on quantum mechanics, solves problems that classic computers today cannot manage.
Quantum IT can do so using qubits – instead of the bits used by today’s computers – to store data. And while bits store zero or 1 data, qubits can represent a zero, one or both at the same time. This allows a huge scaling, and therefore a problem that would take a classic 1000 -year computer to solve can take a quantum machine for about five minutes.
Currently, quantum companies offer customer equipment and services, but we are still in the first stages of development. Experts have said that really useful quantum computers are in several years. The good news is that this means that these companies have a lot of space to function with regard to the growth of income and the performance of the share price. It is clear that if quantum companies achieve their development objectives, these computers could revolutionize many industries.
All of this helped to calculate the pure quantum game companies last year. The bullish market and optimism on the upcoming economy offered the perfect environment for growth actions to excel. But in recent months, the concerns about the import tariff plan for President Donald Trump have weighed on these players. The idea was that prices could lead to higher prices at home, which encourages customers of quantum companies to slow down their expenses.
But in recent weeks, progress in trade negotiations and even initial agreements with the United Kingdom and China have made investors more optimistic about the future. And business benefits have not suggested any slowdown in technology spending – in fact, companies continue to repeat their commitments to these projects.
This backdrop supports the idea of ​​more gains for quantum companies in the second period, especially for some players such as Rigetti and IonqWho have not yet completely recovered – they are down 25% and 5%, respectively, to date. And if they show some income growth in the coming quarters, this could also act as a positive catalyst for stock performance.
But that does not mean that the actions that have continued to move forward, as Quantum of the D wave(NYSE: QBTS)Who goes towards an increase of more than 80%, will not continue to increase. For example, D-Wave recently published its computer Quantum Advantage2, which is accessible both on the cloud and on site. More than 20 million customer problems have been executed by the prototype, and the company claims that the computer is now ready to be used in areas such as the simulation of materials and artificial intelligence (AI).
The adoption of this new platform and new income gains – D -Wave income in the last quarter has climbed a record of $ 15 million – could offer this high level an additional boost at this high level.
Of course, it is important to keep in mind that these quantum pure game companies are not yet profitable and are involved in relatively new and advanced technology, which involves a certain risk. All wind contrary winds could affect the appetite of investors for these kinds of players.
These companies depend on a strong economy, as this increases the probability that potential customers spend on their products and services. And investors generally feel more comfortable getting in growth actions when the economy is booming. Thus, the economic situation of the second half could determine the short -term direction of these actors.
But at the moment, there are reasons to be optimistic that American trade negotiations, as well as better economic data than expected, report better days to come – and that the worst case of a recession and difficult times for the profits of companies will be avoided. In this spirit, quantum IT actions could be defined to go up in the second half while investors are looking to participate in the next great technology that could provide explosive yields.
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Adria Cimino has no position in the actions mentioned. The Motley Fool has no position in the actions mentioned. The Motley Fool has a policy of disclosure.
Will quantum computer stocks go up in the second half? was initially published by the Motley Fool
