In this article, we will take a look at the 5 quantum computing stocks billionaires are piling into. If you want to go through our detailed analysis of the industry and its growth prospects, go to the 9 Quantum Computing Stocks Billionaires Are Piling Into.
5. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)
Number of Hedge Fund Holders: 107
Number of Billionaire Investors: 20
Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a leading Taiwanese semiconductor manufacturing firm that focuses on producing chips for companies such as NVIDIA Corporation (NASDAQ:NVDA). In November, the company provided encouraging updates to investors, revealing its first monthly uptick in sales since February. This positive development was attributed to increased demand for smartphones and artificial intelligence. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) has begun delving into quantum computing through a five-year strategic partnership with Taiwan’s Ministry of Science and Technology. This collaboration serves as a cornerstone in TSM’s strategy to leverage its newly established cloud computing platform for the development of quantum computing applications destined for the commercial market.
On November 13, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) announced a significant 34.8% month-over-month increase in its October net revenue, reaching nearly NT$243.2 billion, accompanied by a year-over-year growth of 15.7%.
In the third quarter of 2023, 107 hedge funds had ownership of Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM). Fisher Asset Management emerged as the primary investor in the company, augmenting its holdings to 30.637 million shares, valued at $2.66 billion.
Wedgewood Partners talked about Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) in its third quarter 2023 investor letter. Here is what it said:
“Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) detracted from performance, as revenues declined 10% from a year ago. The Company is lapping revenue growth of over +40% (compared to 2022) during every quarter of 2023, so it is more instructive to look at the health of the business through the lens of a multi-year timeframe. Most of the Company’s customers have seen near-term weakness in demand due to pandemic normalization. However, we think the longer-term trend of more silicon per device is still very much intact, and the Company is well-positioned to serve this, given its commanding market share in leading edge capacity. The Company’s aggressive investment in leading-edge equipment combined with tight development with fabless IC designers, plus the embrace of open development libraries, should continue to foster a superior competitive position and attractive long-term growth.”
4. Alphabet Inc. (NASDAQ:GOOG)
Number of Hedge Fund Holders: 163
Number of Billionaire Investors: 22
A prominent player in the technology sector, Alphabet Inc. (NASDAQ:GOOG) is anchored by Google, a search engine that processes billions of daily queries. The company possesses diverse platforms for video streaming and productivity, with YouTube standing out as a notable asset. Additionally, Alphabet Inc. (NASDAQ:GOOG) is involved in the retail of electronic devices, including smartphones, ultra-thin notebooks, and speakers. The company has positioned itself as one of the leading quantum computing firms globally with Bristlecone. The 72-qubit quantum processor by Alphabet reduces data testing error rates while seamlessly integrating with the necessary software applications and control electronics for field operations. Additionally, in 2022, the company established its quantum computing and artificial intelligence private entity called Sandbox AQ. This venture has begun to make strides in commercially viable sectors such as GPS mapping, drug development, and cybersecurity.
As of the conclusion of the third quarter of 2023, 163 hedge funds held stakes in Alphabet Inc. (NASDAQ:GOOG). The largest stakeholder in the company was Fisher Asset Management, managed by Ken Fisher, which owns a stake valued at $5.72 billion.
Ensemble Capital Management made the following comment about Alphabet Inc. (NASDAQ:GOOG) in its Q3 2023 investor letter:
“Alphabet Inc. (NASDAQ:GOOG) (+9.32%): Separate from all the discussion of artificial intelligence, Google’s core Search business, having experienced a significant slowdown in 2022, now shows clear signs of reacceleration. While the future of AI and its impact on Google is still subject to a healthy debate, the company seems to have put to bed investor concerns about any rapid negative impact. With Search revenue growth accelerating, and the company rolling out lots of new AI tools, the investor panic from the beginning of the year about AI immediately hurting Google appears to have been overblown.”
3. NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 180
Number of Billionaire Investors: 29
Headquartered in Santa Clara, California, Nvidia Corporation (NASDAQ:NVDA) is an American multinational technology company incorporated in Delaware. Recognized for its expertise in integrated circuit development, Nvidia’s capabilities span a diverse range of devices, from electronic game consoles to personal computers (PCs).his summer, the company achieved another quantum computing breakthrough with the launch of what they refer to as “a unified computing platform designed to accelerate advancements in quantum research and development across AI, high-performance computing, health, finance, and other disciplines.” Known as the Nvidia Quantum Optimized Device Architecture (QODA), it aims to make quantum computing more accessible by providing a “hybrid, open, and unified environment for some of today’s most powerful computers and quantum processors.”
On November 21, NVIDIA Corporation (NASDAQ:NVDA) reported its financial results for the third quarter, ending on October 29, 2023. The company disclosed a revenue of $18.12 billion, marking a significant 206% increase compared to the same period last year and a notable 34% rise from the previous quarter. The quarter recorded GAAP earnings per diluted share at $3.71, reflecting a more than 12-fold increase from a year ago and a 50% uptick from the previous quarter. Non-GAAP earnings per diluted share were $4.02, indicating an almost 6-fold rise from a year ago and a 49% increase from the previous quarter.
Insider Monkey took a look at hedge fund portfolios for NVIDIA Corporation (NASDAQ:NVDA)’s Q3 2023 investments and found out that 180 had a stake in NVIDIA Corporation (NASDAQ:NVDA). Citadel Investment Group was its biggest stakeholder which has roughly 21.85 million stakes for about $9.5 billion of NVIDIA Corporation (NASDAQ:NVDA).
Baron Opportunity Fund made the following comment about NVIDIA Corporation (NASDAQ:NVDA) in its Q3 2023 investor letter:
“NVIDIA Corporation (NASDAQ:NVDA) is a leading semiconductor company that sells chips and software for accelerated computing and gaming. Shares have nearly tripled year-to-date, as the company continues reporting unprecedented growth because of the acceleration in demand for its data center chips. After reporting revenue of $7 billion in the first quarter and providing guidance of $11 billion for the second quarter, NVIDIA reported second quarter revenue of $13.5 billion and guided for another step up in the third quarter to $16 billion, with its CFO declaring “[d]emand for our Data Center platform for AI is tremendous and broad-based across industries and customers.” We are at the tipping point of a new era of computing with NVIDIA at its epicenter. This is how CEO and founder Jensen Huang put it (during the company’s August 23 earnings call):
“[T]he easiest way to think about the demand is the world is transitioning from general purpose computing to accelerated computing…[W]hat you’re seeing companies do now is recognizing this…tipping point…recognizing the beginning of this transition, and diverting their capital investment to accelerated computing and generative AI…This isn’t a singular application that is driving the demand, but this is a new computing platform…a new computing transitioning that’s happening…A new computing era has begun. The simultaneously going through two platform transitions, accelerated computing and generative AI.””
2. Amazon.com, Inc. (NASDAQ:AMZN)
Number of Hedge Fund Holders: 286
Number of Billionaire Investors: 33
Amazon.com, Inc. (NASDAQ:AMZN), a prominent American multinational technology company, is engaged in various business sectors, including e-commerce, cloud computing through Amazon Web Services (AWS), online advertising, digital streaming, and artificial intelligence. The company’s Amazon Braket is a comprehensive quantum computing service that is fully managed, aiming to accelerate scientific research and software development within the quantum computing realm. This service grants AWS customers access to various quantum computing technologies offered by multiple providers. These technologies include superconducting, trapped ion, neutral-atom, and photonic quantum computers, and the providers encompass IonQ, OQC, QuEra, and Rigetti.
On November 2, HSBC initiated coverage of Amazon.com, Inc. (NASDAQ:AMZN) with a “Buy” rating and a price target of $160. The analysts at the firm emphasized that Amazon’s potential in the cloud computing space surpasses its strong customer loyalty in e-commerce. HSBC also highlighted Amazon Web Services (AWS) as one of the most compelling narratives in the technology sector. Additionally, the firm stated that any short-term growth challenges do not undermine the long-term growth prospects of the company.
Based on data from Insider Monkey’s database, a total of 286 elite hedge funds held positions in Amazon.com, Inc. (NASDAQ:AMZN) stock, with a collective stake value of $38.8 billion. This represents an increase from the 278 hedge funds that collectively held a stake valued at $34.9 billion previously. Notably, Ken Fisher’s Fisher Asset Management emerged as the most significant stakeholder in the company, with 41.35 million shares valued at $5.25 billion.
1. Microsoft Corporation (NASDAQ:MSFT)
Number of Hedge Fund Holders: 306
Number of Billionaire Investors: 34
Headquartered in Redmond, Washington, Microsoft Corporation (NASDAQ:MSFT) is a leading technology company that provides a wide array of products. These offerings encompass operating systems, cross-device productivity applications, server applications, business solution applications, desktop and server management tools, software development tools, and video games. Microsoft Corporation (NASDAQ:MSFT), through its Azure Quantum, also offers a wide range of quantum solutions and technologies. The service is specifically designed to assist quantum chemists and other scientists in rapidly scaling and accelerating their research efforts. Azure Quantum Elements, a component of this service, provides researchers with the tools to make significant strides in chemistry and materials science by leveraging the scale, speed, and precision of the latest advancements in high-performance computing (HPC), artificial intelligence, and quantum computing.
Microsoft Corporation (NASDAQ:MSFT) is extending its longstanding four-year collaboration with Oracle, streamlining the integration of Microsoft Azure’s AI services with the Oracle database for enhanced efficiency. This move, coupled with a robust 29% year-over-year growth in Azure cloud revenues during the fiscal first quarter of 2024, this move highlights Microsoft Corporation (NASDAQ:MSFT)’s leadership in the realm of quantum computing.
In the third quarter of 2023, Microsoft Corporation (NASDAQ:MSFT) stands out as the most favored stock among the 910 hedge funds monitored by Insider Monkey, holding the top position in hedge fund sentiment. A total of 306 hedge funds included shares of this software giant in their portfolios, reflecting a cumulative value of $72 billion.
In its Baron Technology Fund Q3 2023 investor letter, Baron Funds made the following comments about Microsoft Corporation (NASDAQ:MSFT):
“Looking at the big picture, Microsoft continues to execute at a high level, navigating a challenging macro backdrop while aggressively investing in long-term growth, and we remain confident that Microsoft is well positioned to leverage AI over the medium to long term as it infuses Open AI and other generative AI technologies across its entire product portfolio.”
You can also take a peek at 15 Best Cybersecurity Stocks To Buy and 25 Smartest Countries in the World.
