After AI, its Quantum Computing. Invest now ?
Nvidia & US market.
With $NVIDIA Corp(NVDA)$ much anticipated quarterly earnings out of the way, US market has gotten way crazier than expected.
During such euphoric moments, it would be foolhardy to stake a position in Nvidia anytime soon, not to mention its paltry $0.02 per share dividend.
I am not doubting about Artificial Intelligence and its impacts - social, economic etc.. Rather — Is its future-value super inflated?
I think “yes”.
The Next Wave.
The good thing about tech stocks on Nasdaq is that there is a myriad to choose from, based off the nature of the company’s business.
It could be in Artificial Intelligence, Software Apps, Cyber etc..
Taking a step back and looking at all the possibilities, I think the next wave “after” AI is Quantum Computing.
I have touched on this subject, at the start of the year on 03 Jan 2024.
Click here ! to read about it.
In that post, my focus was on hardware maker cum leader $IBM(IBM)$.
Since my January post, have things evolved? Yes and it is gaining traction? (see below)
Warnings!
Singapore’s central bank cautioned financial institutions on the cybersecurity vulnerabilities introduced by the advent of quantum computing.
Its processing ability (quantum mechanics), promise to revolutionize processing of certain mathematical problems much faster than today’s computers.
Case in point — current encryption method used to secure (a) apps and (b) customers’ data.
What used to take considerable effort to crack (currently) could take seconds or minutes when quantum processing is leveraged.
Experts are of the opinion that cybersecurity challenges posed by quantum computing will become a reality within the next decade.
In light of imminent future-threats, National Institute of Standards and Technology (NIST) has:
Initiated a global effort to standardize post-quantum cryptography (PQC), that includes identifying quantum-resistant cryptographic algorithms compatible with existing communication protocols to safeguard against CRQC threats.
Research into Quantum Key Distribution (QKD) technology with the aim to create secure methods for distributing encryption keys.
What is CRQC?
Cryptographically relevant quantum computers (CRQCs) are “new” generations of “super” computers that could (a) render current asymmetric cryptography obsolete and (b) necessitate larger key sizes for symmetric cryptography to maintain security.
MAS’s advisory outlines: (for FIs)
(1) Stay informed:
About quantum computing advancements and understand the cybersecurity risks they pose.
Ensure senior management and 3rd-party vendors are aware of the quantum threats & the importance of transitioning to quantum security solutions.
(2) Work with:
IT vendors to assess and mitigate supply chain risks associated with quantum technology.
Collaborate with industry groups and research organizations to collectively address quantum risks.
(3) Maintain an inventory of cryptographic assets and prioritize the transition of critical assets to quantum-resistant solutions.
(4) Evaluate existing IT infrastructure for crypto-agility and consider necessary upgrades.
(5) Enhance staff technical competencies and review internal policies to support the transition to quantum security solutions.
(6) Develop risk mitigation strategies for assets that cannot be transitioned to PQC.
My viewpoints: (mine & mine only)
At face value, it looks like there’s a lot of work to be done now and into the future.
Investment wise, it implies:
Quantum Computing is not a case of “if” but “when”.
MAS’s advisory note is “reminding” Financial Institutions (FIs) to (a) start investing & (b) transiting to “quantum security or quantum-resistant” solutions.
Personally, it means:
Start doing the homework.
Curate and shortlist - quantum computing related companies & its stocks (of course).
Monitor - the list of shortlisted stocks and determine its demand.
Invest before the craze sets in.
Be in the driver’s seat this time?
Possible considerations.
Below are US listed companies that are involved in the quantum computing realm.
$IONQ Inc.(IONQ)$. A pure-play quantum computing company that went public through a SPAC merger.
$Arqit Quantum Inc.(ARQQ)$. Develops quantum-resistant cybersecurity solutions, aiming to protect data from the threat of future quantum computers.
$Quantum Computing Inc.(QUBT)$. Provides quantum computing hardware and software solutions, including a hybrid cloud platform that integrates with traditional computing resources.
IBM Solutions (IBM)$. With a long history in quantum computing, the tech giant offers its own quantum cloud services.
Amazon (AMZN)$. Has launched cloud services based on quantum computing, making it a key player in this field.
Microsoft (MSFT)$: Entered the quantum computing space with its Azure Quantum platform.
Alphabet (GOOG)$: While not solely focused on quantum computing, Alphabet's research arm, Google AI, is actively involved in the field, developing its own quantum hardware & software tools.
Nvidia (NVDA)$. While not involved in building quantum computers, Nvidia has a support role in the ecosystem by developing specialized GPUs that can be used for quantum computing simulations and software development.
On Quantum Computing, an investor is spoilt for choice. Pick wisely to be rewarded !
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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
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Other companies that are missing from your list are:
$D-Wave Systems Inc.(QBTS)$
$Rigetti Computing(RGTI)$
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