Quantum Computing: The New AI? A Look at the Rapidly Expanding Market and Top Stocks For 2025
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 22 2024
0mins
Should l Buy GOOG?
Source: Benzinga
Emergence of Quantum Computing: Quantum computing is poised to revolutionize industries by providing unprecedented computational power, particularly in fields like cryptography and drug discovery, with significant advancements already demonstrated by companies like Alphabet Inc.
Market Growth and Investment Opportunities: The U.S. quantum computing market is expected to grow from $138.2 million in 2022 to $1.2 billion by 2030, driven by increased investments and initiatives, presenting lucrative opportunities for investors in leading companies and quantum-focused ETFs.
Trade with 70% Backtested Accuracy
Stop guessing "Should I Buy GOOG?" and start using high-conviction signals backed by rigorous historical data.
Sign up today to access powerful investing tools and make smarter, data-driven decisions.
Analyst Views on GOOG
Wall Street analysts forecast GOOG stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for GOOG is 336.08 USD with a low forecast of 255.00 USD and a high forecast of 400.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
14 Buy
1 Hold
0 Sell
Strong Buy
Current: 311.330
Low
255.00
Averages
336.08
High
400.00
Current: 311.330
Low
255.00
Averages
336.08
High
400.00
About GOOG
Alphabet Inc. is a holding company. The Company's segments include Google Services, Google Cloud, and Other Bets. The Google Services segment includes products and services such as ads, Android, Chrome, devices, Google Maps, Google Play, Search, and YouTube. The Google Cloud segment includes infrastructure and platform services, collaboration tools, and other services for enterprise customers. Its Other Bets segment is engaged in the sale of healthcare-related services and Internet services. Its Google Cloud provides enterprise-ready cloud services, including Google Cloud Platform and Google Workspace. Google Cloud Platform provides access to solutions such as artificial intelligence (AI) offerings, including its AI infrastructure, Vertex AI platform, and Gemini for Google Cloud; cybersecurity, and data and analytics. Google Workspace includes cloud-based communication and collaboration tools for enterprises, such as Calendar, Gmail, Docs, Drive, and Meet.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Waymo Unveils 6th Generation Autonomous Driving Technology
- Technological Breakthrough: Waymo launches its 6th generation autonomous driving technology, leveraging nearly 200 million miles of fully autonomous data to enhance performance in complex road conditions, marking an acceleration in large-scale deployment and strengthening the company's competitive edge in the autonomous driving sector.
- Enhanced Perception Capabilities: The new system utilizes advanced lidar, radar, and external audio receivers to surpass human vision and hearing, capable of extracting critical details in bright lights and shadows, thereby improving safety and reliability.
- Cost Efficiency Optimization: The 6th generation Waymo Driver employs a 17-megapixel imaging technology that reduces the number of required cameras while maintaining obstruction-free operation in adverse weather conditions like snow and rain, thus lowering operational costs.
- Production Scale Expansion: Waymo is undergoing a significant transformation at its autonomous vehicle factory in Phoenix, aiming to produce tens of thousands of autonomous vehicles annually, demonstrating the company's ambition and potential in the autonomous driving market.
See More
Analysis of Microsoft's Poor Stock Performance
- Investor Insight: Prominent investor Chamath Palihapitiya highlights that since late November 2022, Microsoft has had the worst stock performance among tech giants, indicating limited returns on its investment in OpenAI, which may lower market expectations and negatively impact stock price.
- Volatility Analysis: Volatility skew data shows that for the March 20 expiration, put options have significantly higher implied volatility than call options, indicating a heightened focus on downside risk, which could lead to increased demand for hedging against Microsoft stock.
- Trading Parameters: According to the Black-Scholes model, Microsoft stock is expected to trade within a range of $402 to $423 over the next 36 days with a 68% probability, suggesting a conservative market outlook where a strong catalyst is needed to drive significant price movement.
- Hedging Strategy: Investors might consider a 410/415 bull call spread, which could yield a maximum profit of 117% if Microsoft stock exceeds $415 at expiration, indicating potential profit opportunities despite the prevailing market risks.
See More
IonQ's Quantum Computing Market Prospects
- Technological Advantage: IonQ's focus on trapped ion systems utilizes tiny lasers to trap ions in vacuum chambers, addressing the size and power consumption issues of traditional quantum computers, enabling operation at room temperature and enhancing market competitiveness.
- Low Error Rates: IonQ's trapped ion qubits exhibit consistency and predictability, achieving gate fidelity levels of up to 99.99%, significantly surpassing industry peers, which enhances computational accuracy and builds customer trust.
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is projected to grow at a CAGR of 34.8% from 2025 to 2032, positioning IonQ to capitalize on this growth with its innovative technology and product offerings.
- Revenue Expectations: Analysts expect IonQ's annual revenue to nearly triple from 2025 to 2028, reaching $317 million, and although its stock is currently valued at 38 times its projected 2027 sales, there remains substantial room for growth as the market expands.
See More
IonQ's Trapped Ion Technology Offers Competitive Edge
- Technological Advantage: IonQ's trapped ion technology utilizes lasers to confine ions in miniaturized vacuum chambers, allowing operation at room temperature, which makes it more compact and reduces energy consumption and operational costs compared to traditional electron-driven systems.
- High Fidelity: IonQ's qubits, being identical atoms, demonstrate more consistent behavior than electron-driven superconducting loops, enabling it to achieve gate fidelity levels of up to 99.99% in its two-qubit systems, significantly enhancing computational accuracy.
- Market Potential: According to Fortune Business Insights, the quantum computing market is expected to grow at a CAGR of 34.8% from 2025 to 2032, with IonQ's revenue projected to nearly triple during this period, reaching $317 million as it scales its business.
- Product Diversity: IonQ currently sells four quantum computing systems, including its flagship Forte system and the upcoming Tempo system, while also offering cloud-based quantum computing services, which enhances its market competitiveness and customer base.
See More
YouTube App Launches on Apple Vision Pro Headset
- YouTube App Launch: The YouTube app is now available on the App Store for Vision Pro users, enabling access to 8K videos and supporting 3D, 360-degree, and VR180 formats, marking a significant expansion of Apple's virtual reality content ecosystem.
- Vision Pro Pricing and Market Response: Priced at $3,499, the Vision Pro has faced criticism for its high cost and limited battery life, although Apple has addressed some concerns with the launch of the upgraded M5 version.
- Virtual Reality Market Challenges: According to Counterpoint Research, the virtual reality headset market has shrunk by 14% year-on-year, with Meta's Quest holding about 80% market share, indicating a lack of consumer interest.
- Apple's Strategic Shift: Apple is reportedly shifting focus towards developing AI-powered smart glasses, potentially abandoning extensive upgrades for the Vision Pro, reflecting a cautious outlook on the virtual reality market's future.
See More
Analysis of Smart Money Flows
- Concentration of Money Flows: Most portfolios are now heavily concentrated in the 'Magnificent Seven' stocks, indicating a high dependency on these companies, which could lead to concentrated investment risks.
- Apple's Outflow: In early trading, Apple Inc (AAPL) experienced negative money flows, suggesting a decline in investor confidence that may impact its short-term stock performance.
- Divergent ETF Performance: Both SPDR S&P 500 ETF Trust (SPY) and Nasdaq 100 ETF (QQQ) saw positive money flows in early trading, reflecting market optimism towards these indices, potentially driving related stocks higher.
- Investment Strategy Advice: Investors are advised to continue holding quality long-term positions while adding tactical investments based on market signals, and to stay within the Arora Protection Band to participate in upside while protecting against downside risks.
See More
Waymo Unveils 6th Generation Autonomous Driving Technology
- Technological Breakthrough: Waymo launches its 6th generation autonomous driving technology, leveraging nearly 200 million miles of fully autonomous data to enhance performance in complex road conditions, marking an acceleration in large-scale deployment and strengthening the company's competitive edge in the autonomous driving sector.
- Enhanced Perception Capabilities: The new system utilizes advanced lidar, radar, and external audio receivers to surpass human vision and hearing, capable of extracting critical details in bright lights and shadows, thereby improving safety and reliability.
- Cost Efficiency Optimization: The 6th generation Waymo Driver employs a 17-megapixel imaging technology that reduces the number of required cameras while maintaining obstruction-free operation in adverse weather conditions like snow and rain, thus lowering operational costs.
- Production Scale Expansion: Waymo is undergoing a significant transformation at its autonomous vehicle factory in Phoenix, aiming to produce tens of thousands of autonomous vehicles annually, demonstrating the company's ambition and potential in the autonomous driving market.
See More
Analysis of Microsoft's Poor Stock Performance
- Investor Insight: Prominent investor Chamath Palihapitiya highlights that since late November 2022, Microsoft has had the worst stock performance among tech giants, indicating limited returns on its investment in OpenAI, which may lower market expectations and negatively impact stock price.
- Volatility Analysis: Volatility skew data shows that for the March 20 expiration, put options have significantly higher implied volatility than call options, indicating a heightened focus on downside risk, which could lead to increased demand for hedging against Microsoft stock.
- Trading Parameters: According to the Black-Scholes model, Microsoft stock is expected to trade within a range of $402 to $423 over the next 36 days with a 68% probability, suggesting a conservative market outlook where a strong catalyst is needed to drive significant price movement.
- Hedging Strategy: Investors might consider a 410/415 bull call spread, which could yield a maximum profit of 117% if Microsoft stock exceeds $415 at expiration, indicating potential profit opportunities despite the prevailing market risks.
See More
IonQ's Quantum Computing Market Prospects
- Technological Advantage: IonQ's focus on trapped ion systems utilizes tiny lasers to trap ions in vacuum chambers, addressing the size and power consumption issues of traditional quantum computers, enabling operation at room temperature and enhancing market competitiveness.
- Low Error Rates: IonQ's trapped ion qubits exhibit consistency and predictability, achieving gate fidelity levels of up to 99.99%, significantly surpassing industry peers, which enhances computational accuracy and builds customer trust.
- Market Growth Potential: According to Fortune Business Insights, the quantum computing market is projected to grow at a CAGR of 34.8% from 2025 to 2032, positioning IonQ to capitalize on this growth with its innovative technology and product offerings.
- Revenue Expectations: Analysts expect IonQ's annual revenue to nearly triple from 2025 to 2028, reaching $317 million, and although its stock is currently valued at 38 times its projected 2027 sales, there remains substantial room for growth as the market expands.
See More
IonQ's Trapped Ion Technology Offers Competitive Edge
- Technological Advantage: IonQ's trapped ion technology utilizes lasers to confine ions in miniaturized vacuum chambers, allowing operation at room temperature, which makes it more compact and reduces energy consumption and operational costs compared to traditional electron-driven systems.
- High Fidelity: IonQ's qubits, being identical atoms, demonstrate more consistent behavior than electron-driven superconducting loops, enabling it to achieve gate fidelity levels of up to 99.99% in its two-qubit systems, significantly enhancing computational accuracy.
- Market Potential: According to Fortune Business Insights, the quantum computing market is expected to grow at a CAGR of 34.8% from 2025 to 2032, with IonQ's revenue projected to nearly triple during this period, reaching $317 million as it scales its business.
- Product Diversity: IonQ currently sells four quantum computing systems, including its flagship Forte system and the upcoming Tempo system, while also offering cloud-based quantum computing services, which enhances its market competitiveness and customer base.
See More
YouTube App Launches on Apple Vision Pro Headset
- YouTube App Launch: The YouTube app is now available on the App Store for Vision Pro users, enabling access to 8K videos and supporting 3D, 360-degree, and VR180 formats, marking a significant expansion of Apple's virtual reality content ecosystem.
- Vision Pro Pricing and Market Response: Priced at $3,499, the Vision Pro has faced criticism for its high cost and limited battery life, although Apple has addressed some concerns with the launch of the upgraded M5 version.
- Virtual Reality Market Challenges: According to Counterpoint Research, the virtual reality headset market has shrunk by 14% year-on-year, with Meta's Quest holding about 80% market share, indicating a lack of consumer interest.
- Apple's Strategic Shift: Apple is reportedly shifting focus towards developing AI-powered smart glasses, potentially abandoning extensive upgrades for the Vision Pro, reflecting a cautious outlook on the virtual reality market's future.
See More
Analysis of Smart Money Flows
- Concentration of Money Flows: Most portfolios are now heavily concentrated in the 'Magnificent Seven' stocks, indicating a high dependency on these companies, which could lead to concentrated investment risks.
- Apple's Outflow: In early trading, Apple Inc (AAPL) experienced negative money flows, suggesting a decline in investor confidence that may impact its short-term stock performance.
- Divergent ETF Performance: Both SPDR S&P 500 ETF Trust (SPY) and Nasdaq 100 ETF (QQQ) saw positive money flows in early trading, reflecting market optimism towards these indices, potentially driving related stocks higher.
- Investment Strategy Advice: Investors are advised to continue holding quality long-term positions while adding tactical investments based on market signals, and to stay within the Arora Protection Band to participate in upside while protecting against downside risks.
See More
