Leo Sun, The Motley Fool
5 min read
In This Article:
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D-Wave will lock more customers into its quantum annealing services.
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Reddit's user-driven discussion forums will fuel its long-term growth.
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Both of these companies could grow a lot larger over the next few decades.
The tech sector often lures in investors who are dreaming of millionaire-making gains. After all, great tech stocks like Apple, Amazon, and Nvidia have generated huge multibagger gains over the long term.
But with multitrillion-dollar market caps, those tech giants probably won't generate more millionaire-making gains anytime soon. So instead of chasing those market leaders, investors should focus on smaller companies with more growth potential.
Two of those stocks are D-Wave Quantum (NYSE: QBTS) and Reddit (NYSE: RDDT) -- which could churn out millionaire-making gains in a few decades. Let's take a closer look.
D-Wave Quantum is one of the early movers in the nascent quantum computing market. Unlike traditional computers, which store data in binary bits of zeros and ones, quantum computers store them simultaneously in qubits. That key difference enables quantum computers to process larger amounts of data at a much faster rate than their binary counterparts, but those systems are too large and expensive to be used for mainstream computing applications. That's why they're still primarily used for niche experiments at research institutions and government agencies.
However, D-Wave's quantum annealing tools are already being used to help businesses optimize their schedules, workflows, supply chains, and logistics networks. It accomplishes that by running its quantum processes through its systems, seeing which outcome consumes the least computing power, and recommending that solution as the most efficient one.
That unique strategy makes it a quantum-powered efficiency expert that could disrupt older analytics companies. It bundles together its own hardware products and cloud services in its Leap platform, which can be directly integrated into larger public cloud infrastructure platforms. More than 100 organizations, including Deloitte, Mastercard, Lockheed Martin, and Accenture, already use its services.
Last November, D-Wave successfully calibrated its newest 4,400-qubit Advantage2 processor, which can solve complex 3D lattice problems approximately 25,000 faster than its first-gen Advantage processor. From 2024 to 2027, analysts expect the company's revenue to surge at a compound annual growth rate (CAGR) of 102% from $8.8 million to $72.1 million.
