We recently published a list of 5 Quantum Computing Stocks That Are Hot Again. In this article, we are going to take a look at where SkyWater Technology, Inc. (NASDAQ:SKYT) stands against other quantum computing stocks that are hot again.
When Jensen Huang’s comments about useful quantum computing being at least 15 years away tanked most of the quantum stocks, one person must have secretly chuckled. The man in charge of the largest software company in the world, Satya Nadella, may have been the right person to ask that question. His firm has just revealed a new quantum chip, one that uses a superconductor that is neither solid, liquid, or gas! It is a new state of matter altogether!
The new quantum chip is called the Majorana 1 and it can significantly speed up the quantum processes to solve problems in years rather than decades. Chetan Nayak, a technical fellow at the Windows maker had this to say about the development:
Whatever you’re doing in the quantum space needs to have a path to a million qubits. If it doesn’t, you’re going to hit a wall before you get to the scale at which you can solve the really important problems that motivate us. We have actually worked out a path to a million.
As a result of this revelation, quantum computing stocks are surging again. If you missed the last rally, you may still have ample time to get back in. Here is our list of 5 quantum computing stocks that are hot again. To come up with this list, we only considered stocks that have a market cap of at least $500 million.
Technicians testing a microelectromechanical systems device for accuracy.
SkyWater Technology, Inc. (NASDAQ:SKYT)
SkyWater Technology, Inc. (NASDAQ:SKYT) operates a foundry engaged in semiconductor manufacturing in the US. It collaborates with other technology companies to co-create products. The company’s stock was up 5% yesterday after having fallen to the same levels when the previous quantum rally started in December.
The company doesn’t itself develop quantum technologies but being a manufacturer, it does provide services and manufacturing capabilities to other firms developing quantum tech. Most of the customers of the company are in industries that require highly specialized manufacturing, such as aerospace, biomedical, defense, and quantum computing. Due to this factor, companies like SkyWater Technology (NASDAQ:SKYT) specialize in low-volume fabrication.
The company’s business model of co-creating products using other firms’ expertise is what makes it so attractive. By doing so, it ensures its R&D expenses and risks are low, it can leverage other technology companies’ research, and can build a steady source of revenue through a healthy product pipeline.
SkyWater Technology (NASDAQ:SKYT) is set to announce its earnings on the 26th of February and after registering a 31% YoY growth in the third quarter, we could be at the beginning of a new bull rally spurred by the recent quantum chip developments and earnings optimism.
Overall, SKYT ranks 5th on our list of quantum computing stocks that are hot again. While we acknowledge the potential of SKYT as a leading AI investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is as promising as SKYT but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.