In 1999, computer scientist Ray Kurzweil published The Age of Spiritual Machines. In it, he laid out his “Law of Accelerating Returns” – the idea that each breakthrough happens faster than the last.
History proves him right. It took thousands of years to move from the wheel to steam engines. Just 200 years later, we had mass-produced cars. Only 61 years after that, humans landed on the moon.
Kurzweil also predicted that machines would start passing the Turing Test around 2019. (This is where a machine can mimic human conversation well enough to fool people into thinking it’s human.)
ChatGPT proved him right in 2022. He foresaw the rise of smartphones. Even 3D chip design.
Not every call was perfect, but the big ones were. And they all point to a simple truth: Technology moves in waves, each one faster and bigger than the last.
We’ve already seen the first two waves. The first came with CPUs, which powered personal computers and the internet. The second came with GPUs, which unleashed artificial intelligence.
Now the third computing revolution is here. And it could move at double exponential speed.
A New Computing Revolution
Artificial intelligence has already changed the world. NVIDIA Corporation’s (NVDA) GPUs trained the models behind ChatGPT, self-driving cars and advanced robotics. That AI boom minted 600,000 new millionaires.
But classical computing has limits. Even the most powerful supercomputers can only crunch one step at a time. Quantum computing changes that. By working on countless possibilities at once, these machines can solve in minutes what would take billions of years today.
When you combine quantum with AI, you get something even bigger – a third computing revolution that could dwarf the last.
What Is Quantum Computing?
Now, before we go any further, let’s back up and explain quantum computing.
Think about a maze. A regular computer runs simulations by choosing one path at a time. It hits a dead end, resets, and tries again – repeating this process until it finds the exit.
Artificial intelligence improves that process by reasoning like a person might. It can avoid the obvious dead ends and optimize its pathfinding.
But what if you could test all paths of the maze at once, finding the solution instantly? That’s quantum computing.
Instead of traditional bits that are either 1 or 0, quantum computers use qubits, which can be 1 and 0 simultaneously – a property called superposition. This ability lets them explore many outcomes at once, processing information millions of times faster than today’s best supercomputers.
What was once theoretical is now becoming real. And the breakthroughs are already starting to reach the market.
Three Stocks Positioned to Benefit from Quantum Computing
Now, let’s be clear. None of the stocks I’ll show you today are pure quantum plays. But each is already incorporating quantum computing into its business. That means they’re positioned to benefit as this third computing revolution unfolds – while still generating strong growth right now.
Stock No. 1: The AI Leader
Back in 2016, I recommended NVIDIA when it was just a little-known graphics chipmaker. At the time, it was trading near $1 split-adjusted.
The reason? I saw its GPUs had applications far beyond video games. They could handle “parallelization” – breaking big problems into smaller ones and solving them all at once. That made them perfect for AI.
The rest is history. NVIDIA soared more than 150X, becoming the monopoly backbone of the AI Revolution. Today, its CUDA software locks in developers. Its Hopper and Blackwell chips are years ahead of rivals – and already sold out for the year.
Now NVIDIA is laying the foundation for the next wave. It has launched a quantum cloud simulator and is investing heavily in quantum development. I believe it will play a leading role in the third computing revolution.
But here’s the real kicker: While NVIDIA is a hold in my book, the company has a partner in this new frontier that I believe could deliver even greater upside. This is a smaller company – one that already solved a key technical challenge in quantum. Billionaires like Bill Ackman and Ray Dalio are pouring money into it.
I’ve prepared a full research briefing on that stock – and I’ll show you how to access it at the end of this report.
Stock No. 2: Big Blue Strikes Again
International Business Machines Corporation (IBM)
IBM was once the king of computing. Then it lost its way. For decades, analysts called it a value trap.
But the company has staged a remarkable turnaround. It spun off its legacy consulting unit, doubled down on AI and the cloud and spent billions on acquisitions like Red Hat and HashiCorp. The strategy is working. The stock is up more than 120% over the past five years.
IBM is also a pioneer in quantum. It launched Condor in 2023, a 1,000+ qubit chip, and plans to launch Kookaburra in 2025, a 1,386-quibit processor. It has also reportedly sold $1 billion worth of quantum gear. While it may lag in hardware error correction, it’s strong in software and integration – areas where I expect big commercial demand.
Financially, IBM is back in growth mode. It recently posted blowout earnings, with $5 billion in AI bookings. Analysts expect revenue to climb roughly 6.5% to $66.8 billion and earnings to top $11 per share in 2025.
After years in the wilderness, IBM is finally back on track — and positioned to benefit directly from the third computing revolution.
Stock No. 3: Master of the Cloud
Oracle Corporation (ORCL)
Oracle’s story begins with a simple idea: databases that can organize and retrieve massive amounts of information quickly. Its first client, the CIA, called it “Oracle” because it had all the answers.
Today, about 98% of Fortune 100 companies use Oracle’s databases. The switching costs are so high that customers rarely leave. That makes Oracle one of the stickiest businesses in tech.
The company has expanded into cloud computing, enterprise software and healthcare. Its $28 billion acquisition of Cerner gave it a foothold in electronic health records – an area ripe for AI disruption. Oracle founder Larry Ellison has been blunt: healthcare is now “the industry we’re most concerned about.”
Demand is surging. Elon Musk’s AI startup, OpenAI, and Alphabet Inc. (GOOG) have all signed major deals with Oracle for cloud and storage power. The company is also exploring hybrid quantum computing with Swiss firm QMware, putting it at the cutting edge of integration.
With revenue and earnings expected to grow double digits, Oracle is a powerful way to ride both AI and the coming quantum wave.
The Bottom Line
NVIDIA, IBM and Oracle are three giants already staking their claim in the third computing revolution. They’re well-capitalized, proven and positioned to profit.
But if history has taught me anything, the biggest winners will be the smaller, under-the-radar firms that nobody is talking about yet. NVIDIA was one of those back in 2016. Today, I believe its partner in quantum could be the next.
In fact, I expect a major announcement this fall could light a fire under this entire sector. And I don’t want you to miss it.
That’s why I’ve prepared a brand-new report that reveals everything you need to know about this partner stock – including its name, ticker and why billionaires are buying hand over fist. You’ll also get details on the smaller “quantum moonshots” I believe could deliver 100X gains as this revolution unfolds.
You can access that special research briefing right now. Because once this story goes mainstream, the biggest profits will already be gone.
Sincerely,
Editor, Market 360
