By now, everyone has heard of ChatGPT – the conversational artificial intelligence (AI) chatbot partially owned by Microsoft (MSFT). It has racked up over 100 million users and is now being used by companies like Salesforce (CRM), HubSpot (HUBS), and even big law firms, too.
All the buzz around ChatGPT has some saying that this is the start of a massive AI Revolution that will unlock $15 trillion in wealth over the next few years alone.
Of course, some investors have connected the dots here and figure that the best way to “strike it rich” in the AI Revolution is to buy MSFT stock. After all, Microsoft owns a huge stake in OpenAI, the company behind ChatGPT.
Just look at how MSFT stock has popped over the past few months.
But did you know that Microsoft is actually working on a different type of groundbreaking technology that could prove even more valuable than ChatGPT?
Sure, AI and ChatGPT are getting all the hype these days. But the little-known tech that Microsoft is working on could be even more important. And the company just announced a huge breakthrough with this tech yesterday.
Interested? You should be. Let’s take a deeper look.
Welcome to the Quantum Age
Artificial intelligence and quantum computing are two technologies that will completely transform our society over the next decade in more profound ways than you could imagine.
AI uses software and hardware to automate various tasks, starting with basic things like stocking shelves, flipping burgers, and responding to emails, and ultimately encompassing even advanced things like stock-picking, art creation, and policy making.
Quantum computing involves creating a new generation of computers built on top of quantum mechanics to create infinitely smarter, faster, and more capable computers.
The two will work together to redefine our lives over the next decade.
Software code powers the AI that performs various operations on a computer. The more powerful that computer, the more powerful the AI.
Research shows that quantum computers are about 158 million times more powerful than even today’s most advanced supercomputers.
If we can make things like ChatGPT with today’s traditional computers, just imagine what we will be able to make with quantum computers that are 158 million times faster.
That is when we’re going to start seeing the AI that really changes the world.
The AI that can power fully self-driving cars… figure out how to make an electric vehicle battery last thousands of miles… discover a cure for cancer.
That level of AI is within reach as we enter the Quantum Age – a new age of computing defined by quantum computers.
As you can imagine, the emergence of quantum computers over the next decade presents a huge economic opportunity.
Research firm Statista estimates the global quantum computer market will grow 35X by 2030! That would probably make quantum computing the fastest-growing industry in the 2020s.
And Microsoft is right at the ground floor of this huge growth opportunity.
Microsoft Tech’s Big Breakthrough
Obviously, Microsoft is working on developing AI. It’s integrating ChatGPT into every single one of its products, from Bing Search to Microsoft Word and everything in between.
But Microsoft is also working more secretively on quantum computing, too.
As part of its massively successful cloud computing business – Azure – Microsoft has launched a sub-division called Azure Quantum that provides ultra-powerful quantum cloud computing services.
In short, Azure Quantum allows developers to access the cloud to use quantum computing. Instead of buying your own quantum computer, you can just tap into the power of Microsoft’s quantum computers through a quantum-compute-as-a-service – or QCaaS – model.
This model has been around forever. Amazon (AMZN) and Alphabet (GOOG, GOOGL) run similar QCaaS models. But none have gained significant traction due to limitations of quantum computing usability.
A Quantum Leap
One of quantum computers’ major limitations is that – at least for the foreseeable future (next ~five years) – they will need to be integrated with supercomputers in order to actually work. And the average person doesn’t have a spare supercomputer lying around.
Quantum computers, though super powerful, also have very high error rates. And since they are so powerful and move so quickly, there is a high chance of errors occurring in their quantum calculations.
Developers employ error correction algorithms to resolve these errors and keep quantum computers working. But only very powerful supercomputers can adequately solve those error correction algorithms in the capacity necessary to stabilize quantum computers.
That’s why the near-term future of quantum computers will involve hybrid computing – utilizing both quantum computers and supercomputers in tandem. The quantum computer will perform the calculations, and the supercomputer will keep everything stable. It’s like a superstar NBA or NFL team and their coach – you need to have both.
The hybridization of quantum and classical computing via cloud services has been greatly limited…
Until March 8, 2023. Microsoft announced its new Integrated Hybrid feature, which will allow developers to use classical code right alongside quantum code to control quantum machines and resolve error rates more effectively.
While highly technical in nature, this is a huge step toward making quantum computing more accessible and usable.
We believe it could be the first domino in a series to fall. And it will ultimately end with most companies in the world tapping into the power of quantum computers via a QCaaS model.
As we rush into this Quantum Age, the world will change forever – and investors positioned correctly stand to make fortunes.
The Final Word on Microsoft
A lot of investors know about AI. A lot know about quantum computing, too.
But very few understand that these two emerging technologies are harmonious and synergistic. They will work together over the next decade to change the world and create new multi-trillion-dollar industries.
That’s why you need to be invested in both AI and quantum computing stocks.
Thankfully, we’ve been diving head-first into both industries to find the most promising first-movers in each space. And we’re confident that we’ve found some of the best-in-class companies that AI and quantum computing have to offer.
Find out more about the best quantum computing stocks to buy right now.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.