What technological actions are essential in 2025?

Quantum computing has suddenly become a buzzword on Wall Street.

since then alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) reported that it reached a new milestone with Willow, its new quantum chip, quantum actions they shot up He said Willow can reduce errors exponentially as it scales, performing a standard benchmark calculation in just five minutes that would take one of the fastest supercomputers in the world today 10 septillion years.

The announcement sent Alphabet shares soaring and sent shares of small-cap quantum computing stocks such as Quantum D wave (NYSE: QBTS), Quantum computing (NASDAQ: QUBT), Discard IT (NASDAQ: RGTI)i IonQ (NYSE: IONQ) shooting up

However, in January, those shares collapsed in the face of a crackdown by several high-profile tech CEOs. first Nvidia CEO Jensen Huang said “very useful” quantum computing was 15 to 30 years away. Just a few days later, Metaplatforms CEO Mark Zuckerberg echoed those remarks, saying he believed it was “far from a very useful paradigm.” He also thought that “fairly intelligent AIs” would be available before quantum computing is useful. Even the old one Cisco systems Chief executive John Chambers said quantum computing was another way in the “decade of AI”.

However, leaders of quantum stocks have jumped to the defense of the technology and their businesses.

Digital electrons orbiting a sphere. — Image source: Getty Images.

Investors should be aware that quantum computing is still an emerging technology. Companies like Quantum Computing, D-Wave Quantum, and Rigetti Computing have almost no revenue. IonQ is the largest of the four quantum stocks, but its 2024 guidance calls for just $38 million to $42 million in revenue, even though revenue doubled in the third quarter. With a market capitalization of $9 billion, the stock trades aa price-sale relationship of over 200, showing that investors are betting heavily on the stock.

The potential of quantum computing stocks is debatable, as is the timeline for being disruptive, but between quantum and AI, AI is more deserving of your investment dollars.

This technology is already here, growing rapidly and disrupting a wide range of industries. AI actions also have more room to run. Read on to see two worth buying today.

Micron technology (NASDAQ: MU) is best known as a supplier of memory chips, but these days, the company is seeing an increase in demand for AI, like many of its peers.

Revenue in its fiscal first quarter, which ended in November, rose 84% to $8.7 billion, but what really stood out was its growth in the data center, where revenue rose more than 400 % year-on-year and 40% sequentially, which management attributes to strong demand for AI.

Micron also has a close working relationship with Nvidia, which is believed to be its biggest customer, and its shares rebounded recently after Nvidia said it was using its chips in its new Blackwell platform.

Right now, Micron also looks like an attractive opportunity for investors because shares fell after its recent earnings report on weak guidance. However, management said it would return to strong growth, which could pave the way for meaningful gains for the stock. With a forward P/E of 14, the stock looks cheap for its growth potential.

Another AI stock that looks like a must-have in 2025 is TSMC (NYSE: TSM)or Taiwan Semiconductor Manufacturing.

TSMC is the world’s largest contract chip manufacturer, which handles production for Nvidia, Apple, Broadcomand others This gives TSMC enormous market power, with over 50% market shares in third-party chipmaking and roughly 90% in advanced. In many ways, it is a linchpin of the global economy.

In the fourth quarter, the company continued to push its leadership in advanced chips, as 74% of its revenue now comes from advanced chips, which it considers to be 7 nanometers or less.

TSMC’s revenue growth was 38% and its operating margin nearly reached 50% during the quarter.

With AI demand set to continue to grow and a broader chip sector recovery underway, TSMC looks set for another strong year in 2025 and beyond.

Ever feel like you’ve missed the boat on buying the hottest stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts issues a “Double Down” stock. recommendation for companies that believe they are about to exit. If you’re worried that you’ve already missed your investment opportunity, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: if you invested $1,000 when we doubled in 2009, you would have $357,084!*
Apple: if you invested $1,000 when we doubled in 2008, you would have $43,554!*
Netflix: if you invested $1,000 when we doubled in 2004, you would have $462,766!*

Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another opportunity like this anytime soon.

See 3 “Double Down” actions »

* Stock Advisor returns from January 13, 2025

Randi Zuckerberg, former CMO and Facebook spokesperson and sister of Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Alphabet executive Suzanne Frey is a member of The Motley Fool’s board of directors. Jeremy Bowman has positions in Broadcom, Meta Platforms, Micron Technology, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Alphabet, Apple, Cisco Systems, Meta Platforms, Nvidia and Taiwan Semiconductor Manufacturing. The Motley Fool recommends Broadcom. The Motley Fool has one disclosure policy.

Quantum Computing vs. Traditional AI: Which Tech Actions Are Essential in 2025? was originally published by The Motley Fool

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