Where to Invest? 2 AI Stocks to Consider in the Quantum Computing Boom

Core Themes - The stock market is currently driven by advancements in artificial intelligence (AI) and quantum computing, which are seen as complementary technologies that can significantly enhance efficiency and solve complex problems [1][2] Investment Opportunities - Microsoft and Alphabet are highlighted as two companies that have shown strong earnings growth and are well-positioned to benefit from the AI and quantum computing revolutions [3] Microsoft Overview - Microsoft has a market value exceeding $3 trillion and has consistently delivered long-term earnings growth, with a notable increase in return on invested capital (ROIC) [4] - The company has a robust AI business, reporting an annual revenue run rate of over$13 billion, reflecting a year-over-year increase of more than 175% [5] - Microsoft is advancing in quantum computing with its Majorana 1 quantum chip, which aims to solve significant problems in years rather than decades, utilizing a new type of qubit for enhanced processing power [6][7] Alphabet Overview - Alphabet, known for its Google Search with a market share of about 90%, has also demonstrated consistent earnings growth and has expanded into AI and quantum computing [8][9] - The company is generating AI revenue through its cloud computing services and is enhancing its search capabilities with its large language model, Gemini [10] - Alphabet's latest quantum chip, Willow, has achieved significant milestones, including error reduction and performing computations in minutes that would take classical computers an impractical amount of time [11][12]