3 AI & Quantum Computing Stocks Primed to Dominate the Next Tech Revolution

Quantum leaps and AI breakthroughs are reshaping entire industries—and creating massive investment opportunities.

The Hardware Revolution

Quantum processors and AI chips are becoming the new oil—every tech giant needs them, and the companies building the infrastructure stand to profit enormously.

Software Supremacy

Algorithms that leverage quantum computing and machine learning are solving problems classical computers can't touch—from drug discovery to financial modeling.

Integration Powerhouses

Companies bridging the gap between theoretical quantum physics and practical AI applications are positioned to capture the entire value chain.

Because let's be honest—Wall Street will find a way to overhype this too, but the underlying technology is actually revolutionary this time.

Image source: Getty Images.

1. IonQ

(IONQ -0.22%) is a pure-play quantum company, meaning that its business revolves around this space. This is positive because it shows IonQ's commitment to the technology and such a specialization could result in an expertise you may not find from a more general tech company. But this also comes with risk because IonQ's fortunes depend entirely on its quantum computing program -- and quantum computing hasn't yet reached the stage of general usefulness in the real world.

But IonQ could make an exciting investment for aggressive investors who don't mind this risk. For computing, the company uses trapped ion technology, a method that may be slower than the more common superconducting technology, but it's resulted in greater accuracy. IonQ generates some revenue right now -- about $20 million in the recent quarter -- by offering access to its quantum systems through cloud service providers and selling consulting services to clients.

Though IonQ stock has climbed more than 400% over the past year, if the company is successful with its quantum computing development, it could have much farther to go in the long run.

2. Microsoft

You may not think of(MSFT 0.76%) as a quantum computing company because this player is more associated with software. But the software giant has expanded over the years into everything from social media, with the purchase of LinkedIn, to AI thanks to its cloud business. In recent times, Microsoft has made progress in the area of quantum computing -- and even said this technology may be ready for use sooner than most people think.

Earlier this year, Microsoft said its Majorana 1 chip uses a type of material that allows for better control of particles to produce a superior qubit -- the main ingredient for the solving of problems in quantum computing. The company also launched its quantum ready program, meant to help businesses prepare for this new era. As part of the program, Microsoft offers them the knowledge needed to gain access to the right quantum computing tools, build applications, and more.

Microsoft makes a great quantum bet for cautious investors because the company already generates solid earnings from its well-established businesses -- and that minimizes risk. At the same time, it could score a win for you as the quantum story unfolds.

3. Nvidia

(NVDA 0.14%) offers you the opportunity to benefit from both AI and quantum computing. Let's start with AI. The company dominates the AI chip market, and this has resulted in mind-blowing revenue growth in recent years. This revenue has reached record levels, and considering forecasts for AI infrastructure investment, the momentum should continue.

Nvidia not only offers chips but an entire ecosystem of products and services to support companies along their AI path. This complete package is what has driven the company's successes through the AI boom so far -- and Nvidia's commitment to innovation, promising to update chips annually, could fuel growth in the years to come.

This giant also may make its mark on quantum computing as AI can be applied to the process, for example it can be used to enable error correction. And Nvidia is going all in on quantum with its creation of a quantum computing research center to pair Nvidia's AI chips with quantum hardware -- with a goal of accelerating the development of this hot technology.

Like Microsoft, Nvidia is a good choice for cautious investors thanks to its track record of earnings growth over time -- and the possibility of a quantum computing victory down the road.