Top 4 Quantum Computing Names to Watch in Case Nvidia CEO Is Wrong
Here's how traders should prepare as the quantum computing bubble looks to reinflate.
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Did DeepSeek really only spend around $5 million? No, probably not.
Did it skirt the chip ban? Maybe. But, as an investor, does it matter?
If Scale AI CEO Alexandr Wang is correct, the Chinese AI startup used around 50,000 Nvidia NVDA H100s. Whether the company spent $5 million or $500 million, it appears to have accomplished its goal for heaps less than Sam Altman and his buddies at OpenAI. And that’s pretty impressive.
OpenAI may still be the industry leader, but "DeepSneak" is leading the way in efficiency.
DeepSneak has a catchy ring to it. But all the finger-wagging in the world won’t change these two things:
- The actual impact on Nvidia won’t be known for probably two quarters. Let’s wait for the earnings/revenue revisions or downward capex revisions from Nvidia’s largest customers before we write the company’s obituary.
- If DeepSneak can do what it claims and the price of AI development is about to plummet, investment dollars will flow into the software infrastructure names like never before. It’s not too late to embrace AI agents and the companies leading their development.
I'm trading Salesforce CRM, Snowflake SNOW and Microsoft MSFT on the software side. But recent bullish momentum might need a breather as Wednesday night's earnings release from ServiceNow NOW is weighing on the industry.
Salesforce’s Agentforce and Snowflake’s Cortex are worth digging into if you want a better idea of how these two companies are positioned to profit from investment dollars shifting toward software.
Quantum What?
I was a terrible physics student in high school. Biology and chemistry were no problem, but I should have slept in when senior year physics came up.
Cloud, AI and semiconductors are all pretty easy to understand. But quantum computing is going to take some time.
Aside from reading everything I can that isn’t written for a post-doc researcher audience, I’m listening to podcasts and looking for folks who can explain the actual usability of quantum technology in the near term. The bottom line is that I want to understand how these companies "might" make money, and how long it will take for significant revenue to flow.
If you’re a podcast listener trying to understand quantum, check this podcast out from James Altucher. He sat down with BTQ Technologies (BTQQF) COO Nicolas Roussy Newton and its head of quantum research Gavin Brennen for a Quantum 101 discussion. It's a good start.
Like any trader, I don’t need to understand the technology before I trade the stocks. But if Jensen Huang is wrong, and quantum is here to stay, or the late 2024 quantum bubble reinflates, I want to know as much as possible.
I'll get more into the trading side of quantum as the sector heats back up, but the main ones I’m watching today are Rigetti Computing RGTI, D-Wave Quantum QBTS, IonQ Inc. IONQ and BTQQF.
At the time of publication, Byrne had no positions in any securities mentioned.
