The coming era of quantum computing … how it will usher in a new era for our world … one company on the cutting edge to consider today
Atoms don’t follow the traditional rules of physics.
Our top scientists now understand that quantum particles can move forward or backward in time.
It gets crazier…
They can also exist in two places at once…and even teleport.
It’s mind-blowing stuff.
Now, consider that these strange behaviors are what leading technologists are trying to harness as they create a tool that will transform, well, everything.
***That tool is the quantum computer
Here’s a boiled-down description from our hypergrowth expert, Luke Lango:
While the engineering behind quantum computing is super complex, the big idea is quite simple: Take the unique attributes of quantum mechanics – such as super-positioning and entanglement – and apply them to computing, so as to create a new generation of quantum computers that can do things infinitely faster than even the fastest supercomputers can do today.
It’s hard to grasp the additional speed of these quantum computers, and what it means for coming technological advancements.
But consider this comparison from Peter Chapman, CEO of leading quantum startup, IonQ:
The differences between quantum computers and classical computers are even more vast than those between classical computers and pen and paper.
Futurist, Bernard Marr, writes that quantum computers can solve problems that would take a traditional computer a billion years to solve.
And this isn’t just a “later this decade” kind of technology – we’re already tiptoeing into this world.
From Medium:
In 2019, Google’s quantum computer did a calculation in less than four minutes that would take the world’s most powerful computer 10,000 years to do…
This makes Google’s quantum computer about 158 million times faster than the world’s fastest supercomputer…
It is the seed for the world’s first fully functional quantum computer that can make better medicines, create smarter artificial intelligence and solve great riddles of the cosmos…
As to the ability of quantum computers to change “everything,” there are many examples, but consider perhaps the most significant – healthcare.
From Forbes:
Quantum computers could enable drastic progression in drug discovery and development, ultimately giving scientists the ability to solve problems that are currently intractable…
Scientists, such as those at Swiss pharmaceutical company, Roche, hope that quantum simulations will speed up the development of drugs and vaccines to protect against the likes of Covid-19, influenza, cancer and even potentially find a cure for Alzheimer’s.
***Big tech is already funneling money into this budding technology
Google isn’t the only big tech name pouring money into research here.
Back to Luke:
In December of 2019, Amazon announced that the company would be jumping into the quantum compute space by launching Braket, its own Quantum Computing as a Service (QCaaS) business.
Not two weeks later, Intel unveiled a first-of-its-kind cryogenic control chip – Horse Ridge – to help facilitate the development of full-stack quantum computing systems.
More recently, IBM just shipped its first quantum computer to Germany (this summer), marking the first quantum computer in Europe. (Also this summer), researchers at the University of Innsbruck, Austria, fabricated a compact quantum computer processor that fits in two small boxes – a huge step forward for the miniaturization of these computers.
Folks… the quantum computing revolution starts now… and over the next decade, the rise of quantum computing will turn into one of Wall Street’s biggest investment megatrends.
Let’s put some numbers on Luke’s claim.
From GlobalNewswire:
The Global Quantum Computing Market Size is expected to value USD 487.4 million in 2021 and is expected to reach USD 3728.4 million by 2030 at a CAGR of 25.40% over the forecast period from 2021 to 2030.
We will be bringing you news of advancements here in the Digest over the coming years, as well as specific quantum-related recommendations for your portfolio. But it’s never too early to begin.
And so today, we’re peering over Luke’s shoulder at a recent quantum computing play he wrote about in his service, The Daily 10X Stock Report. It turns out, this company is the same one that our venture capital expert, Cody Shirk, highlighted in his recent issue of Venture Capital Digest.
What’s coming with quantum computing is going to be nothing short of astonishing. Today, let’s put a company on your radar that’s right in the middle of all of it.
***A “pure-play” quantum computing company
For newer Digest readers, Luke is the analyst behind The Daily 10X, as we call it. His specialty is finding market-leading tech innovators that are pioneering explosive trends, capable of generating 10X returns for investors over the long-term.
The Daily 10X is like nothing else we offer. Luke doesn’t keep a portfolio or provide sell advice. But every day the market is open, he highlights a small cap stock with the potential to grow 1,000%.
It’s a lucrative approach to the markets. To illustrate, in just the past five years, Luke has recommended 17 different 1,000%+ gaining stocks. Most investors never enjoy even one such 10X-winner.
Returning to quantum computers, what’s the company on Luke’s radar? The same that caught Cody Shirk’s eye?
From Luke:
The company we’re talking about is Rigetti, who is coming public via a SPAC merger with Supernova Partners Acquisition Company II (SNII).
Rigetti is a pure-play quantum computing company founded in 2013 by someone we perceive as a modern-day genius, Chad Rigetti. Mr. Rigetti is an Applied Physics PhD from Yale that previously was a researcher for three years at IBM’s quantum computing group. Very few people know the quantum computing industry like him.
Over the past eight years, Rigetti has established itself as a thought and technology leader in the quantum computing space. The company has secured huge partnerships with power tech players – like Amazon Web Services – and found itself cited in over 1,000 peer-reviewed publications. The company has also amassed a workforce in excess of 130 employees, over 40 of whom are PhD holders.
In Luke’s issue, he dives into Rigetti’s competitive advantage – its proprietary and scalable chip architecture. He notes that it “appears to be highly effective and highly defensible.”
But what’s especially interesting at the moment is its valuation. At just $1.7 billion, it’s well beneath other quantum computing startups that are valued in the multi-billion-dollar range.
***How might Rigetti 10X your investment?
Let’s go back to Luke:
Management pegs its addressable market at $850 billion, very similar to estimates being thrown around by other public quantum computing companies.
Revenues are expected around $600 million by 2026. That number could easily eclipse $1 billion by 2030.
Application software stocks of this ilk tend to trade around 11X sales.
That implies a long-term valuation target of $11 billion.
***One final note on Rigetti and quantum computing investing in general
Luke makes a great point, namely, that we’re in the earliest of the early days when it comes to investing here. That means plenty of risk – we simply don’t know who tomorrow’s winners will be.
In this type of situation, small position sizes in a basket of sector-related companies is often the best approach. This offers diversification, as well as the chance you align some of your money with tomorrow’s big winner.
On this note, here’s Luke to take us out:
We’re in love with the quantum computing market. I know. We’re not supposed to “fall in love” in the stock market, but quantum computing is a rare exception because the trend will be that big and is that inevitable.
When you find a trend with huge potential like this, you have to take multiple shots on goal within the industry to maximize your return potential.
That is mostly why Rigetti is so interesting. It is another high-quality shot on goal in the quantum computing industry.
Have a good evening,
Jeff Remsburg
