These 2 Artificial Intelligence Stocks Could Be the Best Buys in the Quantum Computing Revolution

As the quantum computing revolution gains momentum, investors are eager to identify the best stocks to capitalize on this transformative technology. Two artificial intelligence (AI) stocks, Alphabet (GOOGL) and Microsoft (MSFT), stand out as compelling investments in the quantum computing space. Both companies have made significant strides in AI and are well-positioned to benefit from the long-term growth opportunity in quantum computing.

Alphabet, the parent company of Google, has a strong track record in AI and is investing heavily in quantum computing research. In late 2023, Google announced its latest quantum chip, Willow, which achieved two significant milestones. Willow demonstrated the ability to reduce errors exponentially as a system scales up and performed a computation in five minutes that would have taken a classical computer an amount of time that exceeds the age of the universe. This breakthrough highlights Google's commitment to advancing quantum computing and sets it apart from competitors.



Microsoft, another tech giant with a strong focus on AI, has also made significant progress in quantum computing. The company recently announced Majorana 1, its new quantum chip that uses a topological qubit, which is stable, fast, and small. This breakthrough could solve meaningful problems "in years, not decades," according to the company. Microsoft's quantum computing as a service (QCaaS) offering is another unique advantage, allowing businesses to access quantum computing power without investing in their own hardware.



Both Alphabet and Microsoft have demonstrated strong earnings growth and profit margins, comparable to other AI and quantum computing stocks. Alphabet's earnings per share (EPS) have grown at a CAGR of approximately 20% over the past five years, while Microsoft's EPS have grown at a CAGR of around 15% during the same period. Their operating profit margins have been consistently high, averaging around 25% for Alphabet and 22% for Microsoft.

While these companies face competition from other tech giants and startups in the AI and quantum computing space, their strong financial positions and diversified ecosystems allow them to invest heavily in R&D and acquisitions to maintain their competitive edge. By leveraging their AI capabilities and investing in quantum computing research, Alphabet and Microsoft are well-positioned to benefit from the significant long-term growth opportunity in this field.

In conclusion, Alphabet and Microsoft are two AI stocks that could be the best buys in the quantum computing revolution. Their strong financials, commitment to AI and quantum computing research, and unique advantages in the market make them compelling investments for long-term growth. As the quantum computing revolution continues to unfold, these two tech giants are poised to lead the way in this transformative technology.