Two Notable Shares in Quantum Computing and Robotics with Potential for Significant Gains in 2025
Two Notable Shares in Quantum Computing and Robotics with Potential for Significant Gains in 2025
The United States stock market has witnessed impressive gains over the last five years, with the S&P 500 posting double-digit increases in four of those periods. Although artificial intelligence (AI) and sophisticated semiconductor chips have driven this bull run, many prominent tech firms now hold lofty valuations that might make investors hesitant.
Leading examples include Nvidia, innovator of AI revolution-related semiconductors, trading at a high forward price-to-earnings (P/E) ratio of over 31. Similarly, Microsoft, leveraging its alliance with OpenAI to advance artificial general intelligence (AGI), boasts a forward P/E of more than 34. These valuations far surpass the S&P 500's forward P/E of 24.1.
This trend has prompted shrewd investors to explore growth prospects in the tech sector beyond these pricey AI titans. Consequently, funds have been directed towards auxiliary tech sectors poised to benefit from AI utilization, such as energy infrastructure, enterprise software, industrial automation, high-performance computing, and robotics.
Such a strategic shift is hardly surprising given the ubiquity of AI in both hardware and software platforms. By 2025, the standout performers might very well hail from small and medium-sized enterprises innovating new AI applications. This article suggests two tech stocks poised to capitalize on the advent of next-generation AI, comprising:
Front-runner in quantum computing
IonQ (IONQ 10.84%) dominates the quantum computing scene, a cutting-edge technology that harnesses quantum mechanics to tackle problems inaccessible to today's most powerful supercomputers. IonQ's shares have soared by an impressive 173% in 2024 (as of Dec. 13), spurred by mounting evidence indicating its trapped-ion approach could unlock quantum computing's substantial commercial potential.
Quantum computing's market is expected to reach an astounding $173 billion by 2040, as per McKinsey & Co. This exponential growth owes to quantum computing's potential to revolutionize industries, including drug discovery, financial modeling, cryptography, and AI.
Although IonQ's $7.32 billion market cap reflects high ambitions for a company still fine-tuning revenue and developing technology, the sheer magnitude of quantum computing's potential makes this a compelling risk for long-term investors. IonQ's collaboration with industry leaders and government agencies highlight strong support for its trapped-ion methodology.
Looking ahead, quantum computing could pave the way for groundbreaking solutions to challenging problems that have confounded scientists and engineers for years. IonQ's trapped-ion technology and $382.8 million cash reserves suggest it could emerge as a leader in this nascent field.
AI-driven urban delivery
Serve Robotics (SERV 28.93%) exemplifies AI's practical implementation in daily life through autonomous sidewalk robots. The company employs advanced AI algorithms for navigation, obstacle avoidance, and route optimization, capabilities that progressively improve as AI technology advance.
Recent developments highlight Serve's momentum. The company secured $32.3 million in additional funding during Q3 2024 and expanded its partnership with Uber Eats to roll out 2,000 robots by the end of 2025.
By 2030, the autonomous delivery robot market is projected to reach $450 billion. Serve's capacity to incorporate increasingly advanced AI models into its robots could help it claim a significant chunk of this burgeoning market.
Currently valued at $579 million, Serve's attractive valuation reflects its technological leadership, expanding Uber partnership, and enormous market potential in urban delivery automation. Serve's strategic role in urban delivery automation suggests substantial growth potential as AI technology evolves and becomes integral to daily life.
In light of the high valuations of prominent tech firms, some investors are looking to diversify their portfolios by investing in auxiliary tech sectors that could benefit from AI utilization. For instance, IonQ, a leader in quantum computing, has seen impressive growth due to its potential to revolutionize various industries and reach a market of $173 billion by 2040.
Given the projection of the autonomous delivery robot market reaching $450 billion by 2030, Serve Robotics, with its AI-driven sidewalk robots, holds an attractive valuation of $579 million and could significantly profit from the growth of this market.
[Prompt and response by Mistral AI]