Quantum computing stocks are back in the news because the Commerce Department on Thursday confirmed that it planned to award $2 billion in grants to nine companies to foster the development of the domestic quantum industry. Both Rigetti () and D-Wave () have signed letters of intent with the government for $100 million in funding under the 2022 Chips and Science Act, which aims to spur research into emerging technologies. Under the terms of this pact, D-Wave will issue $100 million in common stock to the Commerce Department, so the federal government will have a vested interest in its potential success.
Nvidia () announced that its first-quarter revenue surged 85% to $81.6 billion compared to $44.1 billion in the same quarter a year ago. The analyst community was anticipating revenue of $78.9 billion and operating earnings of $1.75 per share, so Nvidia posted a 3.4% revenue surprise and a 6.9% earnings surprise. More importantly, the company raised its second-quarter revenue guidance to $91 billion, which was above analysts’ consensus estimate of $87.3 billion.
Nvidia CEO Jensen Huang said, “The buildout of AI factories — the largest infrastructure expansion in human history — is accelerating at extraordinary speed.” Nvidia now represents almost 16% of U.S. GDP and may rise to over 20% as the AI revolution continues. There are a lot of great technology monopolies that we can invest in, like Google and Nvidia, that ensure that we continue to have tremendous investment success.
Due to the fact that it will take up to three years to fulfill current data center order backlogs, I am anticipating that the spectacular sales and earnings momentum will persist well into 2027.
The recent disclosure that President Trump owns a lot of AI and data center-related stocks means that we are in the midst of a big TACO trade and that he will do everything in his power to boost these stocks. President Trump is now asserting American dominance, and his China trip helped to book business deals for many American companies.