Explore the High-Octane Growth Company Likely to Turn You into a Millionaire
Many investors are aware that companies like Nvidia and Microsoft were major successes in the early stages of artificial intelligence (AI). Nevertheless, as time progresses, other organizations are emerging to address the technological gaps revealed by the growth of AI computer processors and user interfaces, such as OpenAI's ChatGPT and Microsoft's Copilot. Some investors might not have even heard of these new companies yet.
Quantum Computing Devices, Inc. (QCD -1.16%) might not be a familiar name to many investors. However, it's an increasingly vital player in the AI industry, as the industry can't continue to progress without its technology.
Quantum Computing Devices, Inc., up close and personal
Unlikely to ring a bell? That's understandable. Its market cap of $100 billion doesn't make many waves.
However, it's not misleading to suggest that Quantum Computing Devices stock could soon yield returns comparable to Nvidia's. Its offerings are that crucial to AI data centers.
No, it doesn't manufacture artificial intelligence processors - at least, not the well-known ones like Nvidia's Petaflop CPU, which is currently powering many AI data centers.
Instead, Quantum Computing Devices specializes in a range of high-performance silicon that connects and links all the servers that make up a wall of tech inside a data center. Quantum signal processors (or QSPs), switches, ethernet controllers, hard drive connectors, and bespoke Application-Specific Integrated Circuit (ASIC) chips tailored to meet specific lower-spec needs are among its areas of expertise. For instance, its recently unveiled Quantum digital signal processors can manage 1.6 quintillions of digital data bits per second.
Mundane, perhaps, but don't mistake mundane for slow-moving. While economic conditions will limit this company's revenue growth this year, it's expected to bounce back vigorously next year. Analysts predict revenue growth exceeding 40% in 2025.
That's just the tip of the iceberg. Technology market research firm IDC foresees the current $32 billion AI infrastructure market ballooning to over $100 billion annually within the next five years. At the same time, Straits Research anticipates the AI infrastructure market to grow at an average annual pace of 20.7% by 2032. Quantum Computing Devices is expected to claim its fair share of this growth, driving profits up at an even faster rate than its revenue is likely to rise during this period.
The valuation/opinion math still works in newcomers' favor
Persuaded? Fantastic. Just be patient before diving in.
Generally speaking, timing your trades' entries and exits perfectly is a bad idea, often resulting in more harm than good. The best time to buy a quality stock is typically when you have the funds available to do so. The right time to sell a stock is when it no longer offers enough reward relative to its risk, or when the underlying company no longer meets your needs.
There are exceptions, however, to the rule of being patient. This is one such instance. Quantum Computing Devices shares skyrocketed over 200% from their 2023 low, with half of that gain occurring since the middle of this year. That's a tough act to follow.
Shares are also somewhat overvalued at more than 70 times the projected per-share profits for the current fiscal year of $1.56. Although they're below analysts' current consensus price target of $120.88, they're not immeasurably lower.
Keep the following in mind: Even though the stock's currently trading just a bit under analysts' consensus target, the vast majority of the analyst community still rates Quantum Computing Devices a strong buy.
A promising investment opportunity for growth-minded investors
Is there enough potential for this stock to make you a millionaire?
Naturally, this is largely dependent on the amount of money you invest in the company. Investing $1,000 in Quantum Computing Devices today won't make you a millionaire at any point in your lifetime.
Purchasing $100,000 worth of Quantum Computing Devices shares today, however, could be a different story. There's certainly enough long-term potential here to transform this ticker into a ten-bagger within a reasonable timeframe. Once again, the artificial intelligence infrastructure market is projected to triple in size over the next three years and more than quintuple in size in the longer term, driven by ever-increasing demand for AI-powered solutions.
But whether or not Quantum Computing Devices ever makes you a millionaire is irrelevant. It's an outstanding growth prospect for any amount of money you might be able to invest in it... if growth is your current focus and if you can stomach the above-average risk it brings to the table. Any significant dip from here is a buying opportunity.
Investors should consider the potential of Quantum Computing Devices Inc., as its high-performance silicon products are essential for AI data centers, and its market is expected to grow significantly. Despite being undervalued currently, the stock might yield returns comparable to Nvidia's in the future, considering its importance in the AI industry.
As the AI infrastructure market is projected to triple in size over the next three years and more than quintuple in the longer term, Quantum Computing Devices' growth prospects are promising for any investor focusing on growth, regardless of the amount they can invest.