Contrary to a common assumption, all the big stock gains stemming from the advent of artificial intelligence aren’t in the rearview mirror. There are plenty more to be reaped during the next chapter of the AI revolution.
The stocks that will likely be dishing out these future gains, however, aren’t necessarily the ones that have done so thus far. New leaders will emerge.
With that as the backdrop, here’s a closer look at three artificial intelligence stocks ripe for parabolic moves sooner or later.
IonQ
You likely know that computers are ultimately based on a system of digital ones and zeros, differing combinations of which mean different letters, numbers, and instructions. That’s where we get the term “binary code,” in fact. And this approach has worked well enough for decades.
Science, materials, and knowledge are finally pushing the limits of what binary code is capable of handling, however. A new kind of computing called quantum computing — based on subatomic particles — can utilize a practically infinite combination of information all at the same time. For perspective, quantum computers operate 100 million times faster (or more) than today’s conventional computers.
IonQ (NYSE: IONQ) is one of the few companies developing such quantum computers. It’s also arguably leading the commercialization charge on this front. Although it many have only done $11.4 million worth of business last quarter, that was a 106% year-over-year improvement driven by growing demand for this relatively new tech that has serious potential on the artificial intelligence front.
The stock hasn’t always or consistently reflected the company’s underlying opportunity. For instance, it soared in late 2021 shortly after its initial public offering only to fall to below-IPO level in the latter half of 2022. It bounced again in the middle of last year only to end up retreating again. It’s currently down more than 60% from last year’s peak, and back near new 52-week lows as a result. The market’s just not quite sure what to make of this new company.
The science and its prospects are real, though….
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