In this article, we will take a look at the 5 quantum computing stocks billionaires are purchasing. If you want to read our detailed analysis of the industry and its growth prospects, go to the 10 Quantum Computing Stocks Billionaires Are Loading Up On.
5. NVIDIA Corporation (NASDAQ:NVDA)
Number of Billionaire Investors: 22
Dollar Value of Billionaire Holdings: $4,560,858,701
Number of Hedge Fund Holders: 132
NVIDIA Corporation (NASDAQ:NVDA) introduced the world’s first graphic processing unit (GPU) accelerated quantum computing system called the NVIDIA NGX Quantum in March 2023 during its annual NVIDIA GPU Technology Conference (GTC). The system is based on NVIDIA Grace Hopper Superchip and open-sourced CUDA Quantum programming model, as it integrates the power of quantum computing with classical computing by using coding languages like C++ and Python. The Grace Hopper GPU system is powered for big-scale AI and high-performance computing (HPC) applications.
Here’s what RiverPark Advisors said about NVIDIA Corporation (NASDAQ:NVDA) in its Q1 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA): NVDA shares were our next top contributor on better-than-expected 4Q results and 1Q guidance. The stock also benefitted from the positive momentum around Artificial Intelligence and the Nvidia chips that drive it. While revenue was down -21% year over year, a rebound in the company’s gaming business helped drive revenue above Wall Street’s expectations.
NVDA is the leading designer of graphics processing units (GPU’s) required for powerful computer processing. Over the past 20 years, the company has evolved through innovation and adaptation from a predominantly gaming-focused chip vendor to one of the largest semiconductor/software vendors in the world. Over the past decade, the company has grown revenue at a compound annual rate of over 20% while expanding operating margins and, through its asset light business model, producing ever increasing amounts of free cash flow. After working through its near-term slowdown, we expect future growth to remain robust as NVDA chips and software are critical to many of the core technologies being adopted globally, including cloud computing, virtual reality, and artificial intelligence.”
4. Alibaba Group Holding Limited (NYSE:BABA)
Number of Billionaire Investors: 25
Dollar Value of Billionaire Holdings: $2,105,631,807
Number of Hedge Fund Holders: 128
Alibaba Group Holding Limited (NYSE:BABA) has secured the fourth position on our list of the best quantum computing stocks billionaires are purchasing.
Alibaba Group Holding Limited (NYSE:BABA) has established the CAS-Alibaba Quantum Computing Laboratory in partnership with the Chinese Academy of Science to expand the company’s operations in the quantum computing industry. The research facility is part of the Alibaba Group’s DAMO Academy (Academy for Discovery, Adventure, Momentum, and Outlook), considered the technology conglomerate’s research and development (R&D) arm. The division has developed a processor leveraging the power of fluxonium qubits.
Here’s what L1 Capital said about Alibaba Group Holding Limited (NYSE:BABA) in its Q1 2023 investor letter:
“Alibaba Group Holding Limited (NYSE:BABA) (Long +16%) shares performed strongly based on favourable sentiment surrounding China’s re-opening and indications from Chinese authorities that the prolonged restructuring process of Alibaba/Ant Financial was finally drawing to a close. The company remains a high-quality business with leading positions in both eCommerce and Public Cloud. We exited our position in January at around US$116 per share with the shares having rallied more than 90% since their early November lows and our China re-opening catalyst having played out. We subsequently re-entered the position in March with the shares having pulled back and with the company announcing a new organisational and governance structure. Alibaba has announced plans to split into six major business groups – Cloud Intelligence, Taobao Tmall, Local Services, Global Digital, Cainiao Smart Logistics and Digital Media and Entertainment Group. Each of these groups will be managed independently (separate CEO and board) and have the flexibility to raise external capital and potentially pursue separate IPOs. We believe this announcement is a strong catalyst to unlock the inherent sum-of-the-parts valuation discount in the company.”
3. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Billionaire Investors: 31
Dollar Value of Billionaire Holdings: $9,255,613,068
Number of Hedge Fund Holders: 243
Amazon.com, Inc. (NASDAQ:AMZN) has developed the Amazon Braket, which is a cloud-based service offered by Amazon Web Services (AWS). The service provides access to quantum computing resources. It aims to enable developers, researchers, and businesses to experiment with, explore, and develop quantum algorithms and applications. In May 2023, the service included Aria in its portfolio. Aria is IonQ’s latest quantum machine and has the built-in ability to mitigate errors. This is the second quantum computing system that IonQ has shared with Amazon Braket.
Here’s what Vulcan Value Partners said about Amazon.com, Inc. (NASDAQ:AMZN) in its Q1 2023 investor letter:
“Additionally, Skyworks Solutions, Amazon.com, Inc. (NASDAQ:AMZN), and TransDigm Group were all material contributors during the quarter. We have discussed these companies at length in prior letters. Despite slowing growth and macro headwinds, Amazon experienced revenue growth in all three segments: AWS, Advertising, and Retail. Amazon is also addressing its cost structure to better align with its slower growth rates. We believe Amazon is a dominant, world-class company with powerful secular tailwinds. All three of these companies are executing well, their theses are intact, and we are pleased to own them at a discount to our estimate of intrinsic value.”
2. Alphabet Inc. (NASDAQ:GOOGL)
Number of Billionaire Investors: 32
Dollar Value of Billionaire Holdings: $5,725,927,398
Number of Hedge Fund Holders: 204
Alphabet Inc. (NASDAQ:GOOGL) ventured into the field of quantum computing through its quantum computer, named Sycamore. The computer achieved quantum supremacy in 2019 by solving a complex calculation in just 3 minutes and 20 seconds and utilizing 54 qubits.
Of the 943 hedge funds in Insider Monkey’s database, 204 funds held a stake in Alphabet Inc. (NASDAQ:GOOGL) as of Q1 2023. Meanwhile, 32 billionaire investors reported owning a stake worth over $5.7 billion in Alphabet Inc. (NASDAQ:GOOGL) during the first quarter of the year.
Third Point Management shared its stance on Alphabet Inc. (NASDAQ:GOOGL) in its Q1 2023 investor letter. Here’s what the firm said:
“Third Point initiated a position in Alphabet Inc. (NASDAQ:GOOGL) during the First Quarter. Fears around the potentially negative impact that AI and ChatGPT/MSFT may have on GOOGL’s business created a unique entry point into one of the best consumer internet assets and businesses of our generation.
While ChatGPT has unquestionably captured the general public’s attention (as well as several hundred million users), we believe the market underestimates GOOGL’s own capabilities and opportunities in the emerging field of generative AI. GOOGL has been a leader in the broad field of AI for years, with the company’s scientists pioneering several of the software and hardware innovations that underpin current advances, most notably the Transformer architecture in 2017 that served as a key building block for GPT-3. Fruits of these investments were visible at last week’s developer conference, Google I/O, where GOOGL previewed their latest large language model (LLM) and an impressive slate of AI- powered product improvements across their Search, Maps, Gmail, Workspace, and Cloud offerings. We believe these new products now put Google on the offensive in the dawning age of AI, allowing it to further grow consumer engagement with Search, make its Workspace products more competitive against Microsoft Office, and differentiate its Cloud offerings to accelerate share gains from AWS and Azure…” (Click here to read the full text)
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Billionaire Investors: 33
Dollar Value of Billionaire Holdings: $27,521,760,421
Number of Hedge Fund Holders: 289
Microsoft Corporation (NASDAQ:MSFT) offers access to quantum computers by IonQ and Quantinuum through the company’s Azure Cloud Computing services. The Redmond, Washington-based technology giant recognizes the importance of contributing to a quantum-safe future and has implemented safeguards in its systems to prevent any malicious use of its cloud-based quantum computing services. Microsoft Corporation (NASDAQ:MSFT) has also invested in post-quantum cryptography (PQC) to address the evolving cryptographic landscape.
Here’s what Diamond Hill Capital said about Microsoft Corporation (NASDAQ:MSFT) in its Q1 2023 investor letter:
“We did have several strong performing stocks this quarter. Our top contributors to return included NVR, Amazon, Alphabet, Microsoft Corporation (NASDAQ:MSFT) and Booking Holdings, all of which posted double-digit gains.
Shares of software and IT services provider Microsoft rallied as investors became less cautious about the potential for growth deceleration in Azure, its public cloud business, and more focused on opportunities in search after the company announced an investment in and long-term partnership with OpenAI, the company that developed ChatGPT. Microsoft’s net cash balance sheet also seemed to gain appreciation from investors who became more cautious about the economic cycle.”
Disclosure: None. You can also take a look at the 10 Countries Leading the Meme Coin Craze in 2023 and the 10 Most Popular Stocks on Robinhood.
