Will the Wait for Quantum End Today? By JASON BODNER, Editor, QUANTUM EDGE PRO If you think artificial intelligence is a transformational technology that made a lot of investors money – and continues to do so...
Just wait for quantum computing.
AI has changed the way we solve knowledge-based problems and how we think about machines. But it still uses the same kind of computing technology we've had for decades.
Quantum is a big next step. It's a paradigm shift in what computers themselves are capable of... and stands to boost the pace of new technological breakthroughs like nothing else has before.
As my friend Louis Navellier puts it, old computers make decisions based on picking a "1" or a "0." Quantum is essentially able to choose both the "1" and the "0" at the same time... unlocking a new wave of efficiency and computational power.
So we're waiting for quantum computing to deliver this new paradigm.
But how long must we wait? And what can we do in the meantime?
Let me try to answer those questions... What to Expect from Nvidia Today As for how long we have to wait, we could get a hint today as Nvidia (NVDA) hosts its first-ever Quantum Day.
The "Q Day" you've been hearing about is actually part of the company's annual AI conference. One of the featured sessions, hosted by Nvidia CEO Jensen Huang today at 1:00 p.m. Eastern, will bring together industry leaders "to learn today's state of the art and what the future holds for useful quantum computing."
I emphasized that word – "useful" – because Huang has a bit of history with it...
Back in January, Huang got a lot more attention than he probably bargained for when he said that "very useful quantum computers" were still 15 to 30 years away. Quantum computing stocks got whacked... right after a stellar run that took several of them multiples higher in the span of weeks.
If "useful" quantum is so far away, why would Nvidia devote a day to quantum computing at its AI conference?
Far be it from me to question Mr. Huang's brilliance. He may be right that we're decades away from quantum computers being as ubiquitous as laptops.
But technological advancements seem to be picking up the pace, and there will be more breakthroughs along the way that power the technology and drive stocks higher.
D-Wave Quantum (QBTS) nearly doubled just last week after announcing that one of its quantum computers completed a complex materials-science simulation in just 20 minutes.
Twenty minutes sems kind of slow, right? Well, D-Wave expects that same problem would have taken the most powerful supercomputers nearly a million years to finish.
Last month, scientists at Oxford announced they built a supercomputer capable of quantum teleportation. Data has been teleported before, but this step forward was the first with "logic gates." Logic gates perform logic functions, making them the building blocks of algorithms. I dealt with those when writing the algorithms for my Quantum Edge stock-picking system. We may not be at the "Beam me up, Scotty" teleportation phase yet, but teleporting data is pretty wild. Oxford graduate Dougal Main, who led the study, put it this way: "This breakthrough enables us to effectively 'wire together' distinct quantum processors into a single, fully connected quantum computer."
Researchers said this breakthrough shows how a quantum system could be constructed using available technology. That's a potential gamechanger as the biggest challenge to widespread quantum computing is making quantum computers on a practical scale.
So on one hand, we have Huang saying quantum is more than a decade away. On the other, we have real-world evidence that it's already here.
And that makes what might come out of Q Day today even more interesting.
A shock announcement out of Nvidia could light a fire under not just the early-stage companies directly involved in quantum computing... but also a whole host of other companies that are part of the biggest story in tech. Recommended Link | | | TradeSmith analyst Jason Bodner is revealing the name and ticker for his next AI stock pick. It’s an off-the-radar stock that he believes is set to power the whole world economy with AI. And it could crush all other AI stocks. Jason has agreed to reveal his new AI pick for free. For full details – down to the ticker symbol – go here and check out his latest video bulletin. |  | |
The Great Convergence While AI gets all the attention – and NVDA is the poster-child stock for AI winners – it's one leg of a three-legged stool transforming our digital world.
Understanding this helps us find some of the best and most exciting opportunities today. Three critical technologies are converging, and all three are essential to more amazing breakthroughs in the future: - Artificial Intelligence
- Quantum Computing
- NextGen Networking
AI is the revolutionary software. Quantum computers will be the revolutionary hardware. And next-generation networking allows them to "talk" to each other without tapping the brakes on data transmission.
We won't need quantum computers sitting in our offices or homes thanks to Hardware as a Service (HaaS).
You've probably heard of Software as a Service (SaaS). It's a popular and successful business model in which companies "rent" their cloud-based software to users who connect over the internet.
The best SaaS companies have made investors a boatload of money. Microsoft (MSFT) and ServiceNow (NOW) both soared more than 900% in the last decade. 
I expect quantum computing will build on this "as a service" as the technology becomes cheaper and more ubiquitous. Where to Invest Now While still in its early phases, quantum computing and related stocks should be on your radar.
Which ones?
Years of quantitative analytics and research taught me that companies with the highest probability of making money all have best-in-class fundamentals, strong technicals, and Big Money flowing in.
At this point in technology's revolution, we find more of those companies on the AI and networking legs of the stool.
Pure-play quantum-computing companies are mostly startups, which typically don't rate well in my system. D-Wave Quantum, for example, has a Quantum Score of 56.9. That's a lot higher than it was before, but the increase is mainly attributable to the recent technical momentum. And it's still below my preferred buy range of 70 to 85.
As a startup, the company isn't yet profitable, lacks earnings growth, and has a profit margin deep in the red at -1,630%. Therefore, its fundamentals rate just 16.7 in my system.
I prefer companies like Arista Networks (ANET), which I recommended to my TradeSmith Investment Report readers in 2023. It is a leader in next-generation networking that has been at or near the top of my system's rankings for a long time.
ANET's Quantum Score has slipped to 56.9, the same as QBTS and under my normal buy range. But we're not in a normal market right now with the S&P 500 and Nasdaq in correction territory. More important is ANET's blistering Fundamental Score of 87.5. That's about as good as it gets. 
Source: TradeSmith Finance We're still up 117%, even amid the turbulence, in part because we booked 143% profits on one-third of our shares late last year. ANET remains a networking leader, and I expect higher prices in the future.
I expect the same for Nvidia, which joins its Magnificent Seven brethren Microsoft (MSFT), Amazon (AMZN), and Alphabet (GOOGL) in the great quantum race.
NVDA's current chip dominance has it positioned for more upside, even after it has soared more than 21,000% the last decade. Shares have fallen 25% from their recent 52-week high (Jan. 7), and that dragged NVDA's Quantum Score down to 55.2 as its technical rating plummeted. But again, notice the beefy fundamentals at 79.2. 
Source: TradeSmith Finance That's a high-growth company, even with a $3 trillion market capitalization. We may learn more about Nvidia's quantum-computing plans in a few hours, but I am confident the company will remain a critical player in both artificial intelligence and quantum computing.
In fact, my friend and colleague, Louis Navellier, thinks Nvidia is making a big move in the quantum-computing space.
Louie is a legendary quant investor, and we like nothing better than nerding out over stocks and data.
He says it's not if Nvidia is gets into quantum computing... but how big the move will be.
He's also identified a small company that already has contracts with Nvidia, Amazon, and Microsoft that he thinks could be the biggest winner of all. It may be mentioned in today's Q Day announcements and be positioned for explosive gains as a result. I urge you to check out Louie's Next 50X NVIDIA Call summit before Nvidia's Q Day starts this afternoon. You'll learn more details about Q Day and about this small-cap stock protected by 102 patents with close ties to Nvidia.
Click here to watch it now. As AI, quantum computing, and next-generation networking converge, the speed and capabilities that will be unleashed are almost beyond our imagination.
That's how transformative the next leap will be, impacting everything from how we communicate to how long we live.
I'll stay on top of this story, both here in TradeSmith Daily and for my TradeSmith Investment Report and Quantum Edge Pro subscribers. Keep reading, and you'll be the first to know what's happening in this exciting space.
Talk soon,  Jason Bodner
Editor, Quantum Edge Pro Disclosure: On the date of publication, Jason Bodner held positions in Nvidia (NVDA), Microsoft (MSFT), and Alphabet (GOOGL) mentioned in this article. | 
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