This Will Change Everything. Get Ready For the Global Power Reset.

It's the day that could change everything for  every market across the globe. And right now,   every single government is racing to be first  in this global power reset. Joining us today to   talk about quantum computing and how it could  change the game for everything is market beat   analyst Jeffrey Neil Johnson. Jeeoff, I'm so glad  to have you back on the show talking about this.   Right now, these stocks might seem quiet, but  behind the scenes, there is a lot going on. So,   let's start out by talking about what is this big  day in the quantum computing story that has the   power to really change everything. They're calling  this Qday. And here's why. It's been around for   a while now. They've talked about it. It's been  theoretical up until recent quantum advancements,   but recent advancements in quantum have  accelerated the timeline to Qday. And Qday   is basically the day where quantum uh technology  becomes so powerful that it instantaneously breaks   all encryption algorithms that we have available  today. So we're talking the encryption algorithms   for your bank. We're talking the encryption  algorithms that govern cryptocurrency. We're   talking the encryption algorithms that the  governments use to hide secrets. Everything   revolves around a certain set of algorithms. And  once this Qday hits, all of those algorithms are   rendered useless. Now, this sounds a little  bit apocalyptic and maybe science fiction to   some people watching right now, but there is some  real uh truth and real fears behind this because   governments are absolutely working towards and  putting money towards solving this problem. Yeah,   absolutely. Since this recent set of advancements  has happened, let's say within the last quarter or   so, there have been quite a few governments that  have come to the realization that this QA will   come faster than they expected. So, you recently  had the Treasury Department saying that they need   to um absolutely start moving towards quantum  safe encryption. You had the National Institute   of Safety and Technology issue their post uh  their postquantum crypto guidelines. You have   the White House itself issuing guidelines saying  that everything in the White House and everything   that the United States governs as far as like  the CIA, the FBI, the Navy, all of that has   to be quantum cryptosafe by 2030. And the thing  about that is is I honestly believe that with the   advancements that are happening and the um let's  say uh threat actors that are also working on   this kind of technology that this day may actually  come before 2030. And I'm not going to be like an   alarmist or anything like that. It's just if you  look at where the technology is and you look at   how fast we created AI, how fast PCs develop, it  just feels like it's going to be here before 2030   and that the race is now officially on. Yeah,  the race is absolutely on right now, Jeffrey,   but it's on in two different areas. There's a race  for protection, the different companies that are   out there to help protect against quantum.  And then there's the race to be the first to   to break that quantum code to really actually  make quantum computing a reality. So there's   two different areas that we're going to cover in  this video today. We have three of those quantum   defense companies that are working for protection  against that quantum computing uh algorithm being   broken. And then we'll be looking at three  of the companies that are leading the race   to really breaking that quantum computing code.  So we're going to cover all six of those names   in this video today. I think you're right there,  Jeffrey, about how quickly things are advancing.   AI is moving so much faster uh than anyone  expected and it is absolutely changing everything,   but it should also be changing the way that you  act in your personal lives. A big thank you to   Monarch for sponsoring today's video. Monarch is  using their powerful AI platform to bring all of   your finances together in one place and give you  some key insights into your own spending and your   saving patterns that can really be a gamecher for  your overall net worth. I have my bank, my credit   cards, and my investments all synced up in one  dashboard now. So, instead of guessing where my   money's going, I can actually ask Monarch and get  a real answer. I also have a goal set up right in   the app that's able to show me exactly how long  it's going to take to get there based on what I'm   putting toward it each month. And the best part  is everything stays private. Monarch isn't selling   your information or trying to sell you something.  This platform is all for your eyes only. So, while   the technology around us keeps getting smarter,  it's nice to know my own finances are keeping up,   too. If you want to see what Monarch can do for  you, scan the QR code on the screen or click the   link in the description. My promo code is  right down there as well. And don't worry,   with over 13,000 institutions syncing on Monarch's  platform, just about anyone can give Monarch a try   today. All right, Jeffrey, let's get into this  list. We have six stocks to cover today. Let's   start out with these quantum defenders. What is  the first company that you're looking at? So,   the first company that we're going to be looking  at is International Business Machines, IBM,   of course. And the reason that we're looking  at them is because they're kind of playing both   sides of the card. They're developing their  own proprietary quantum technology and at the   same time they're developing um the theoretical  mainframe that will house the quantum crypto side   of it that that keeps everything sick. Yeah. IBM  is a name that a lot of people have now attached   to quantum computing and a large part of that  because of that government investment. Let's   talk about that first. Okay, so that government  investment was specifically towards these mandates   to be to create a quantum safe environment that  helped them create their huron chip and build on   that. Right. So in the the thought would be that  IBM has got with their massive amount of quantum   related patents, they have a pretty good foothold  on being able to be the one to execute this out.   So they took that money, they were able to develop  the Huron system. And then just recently, as in   with just the last few days, they released a whole  new architecture that allows you to run their uh   silicone on the motherboard or ARM silicone on the  motherboard. And there's never been an environment   where you can seamlessly run um basically the  Linux side of things and the machine code side   of things all at the same time. And that's going  to create massive advancements. And that's being   specifically done so that every bank in the  world will buy this specific rack so that they   can start developing their quantum safe vaults.  Well, that covers some of the potential here for   IBM and where it could be headed in the future.  But looking at the reality of what is happening   in the price action on the stock right now is  a little wild for investors to really consider.   What we're talking about here today could be  years down the road yet. But let's look at the   reality of where IBM stock is today. This is wild  volatility. Is this going to continue? Yeah, it   it's it's absolutely going to continue. You know,  the IBM is right dead in the center of uh quantum,   they're right dead in the center of AI, they're  right dead in the center of AI infrastructure,   they're right dead in the center of new, you know,  new chip development, new foundry development,   everything that's volatile right now, IBM has  their hands in. But the great thing about IBM   is is they have the purse to to do that. You know,  IBM has the funds to be able to carry all of these   different things at the same time. And so now's  the time to start looking at, you know, finding   close to the bottom where you can open a position  or start accumulating your position in IBM because   we're currently, if you look at the AI thesis,  we're kind of close to the bottom of that. If you   look at the quantum thesis, we're kind of close to  the bottom of that. Speculation is at an all-time   high. Geopolitical issues are at an all-time  high. And all of this is just pushing all these   stocks down. And the value of this technology far  outweighs anything that AI ever was. Far outweighs   most of what computing ever was. I mean, this  is a complete reset in in in terms of technology   and the things that we can do with technology.  It it could absolutely be a reset and that is   why we were talking about it as a potential reset  right now. But on the flip side of that, investors   looking at quantum computing stocks right now,  they've been burned before. Maybe not in IBM,   but in some of the other names we're going to  get to of these quantum computing pure plays   where the excitement drives up for these stocks.  It drives up the price of these stocks. And then   once that excitement is gone, these stocks  lose a ton of value because the growth story,   the real growth story is still far off down the  road. Some investors saying, "Will it ever come?   Will we ever see the payoff from the investments  in some of these names that are very much   pre-revenue and are just working towards a goal,  but are nowhere near actually being profitable   right now?" Uh IBM is in a different story than  some of the others that we're going to get to,   but let's just talk about it right now before we  get to the rest of the list. Is that profitability   too far off for investors to really be looking  right now or is now a really good time to be   looking at quant? You know, I think that the  profitability is still a little ways off,   you know, maybe somewhere around the late 2027  2028 timeline. But the thing is is the volatility   that's here now is what you want to use. You  want to use that volatility to be able to create   profit that you can then accumulate a position on  top of. So, you know, when it's high, obviously   you're going to sell. When it's low, obviously  you're going to buy. these stocks are volatile   enough and the um timeline is long enough and the  story is dramatic enough that you're going to see   swings in this that you can play to help you build  your position so that when it finally does get   to the point where everything's in the green and  analysts are talking the way they're talking about   AI infrastructure now you will have had a position  for a long time at that point and you'll be one of   those players that's been in this scene for a long  time this is new stuff this is new timeline stuff   where these These advancements have fundamentally  changed the reality of when this story is going   to happen. The timeline is moving up and there are  many companies moving into the race. Let's move on   to the second stock that you are looking at as one  of those quantum defenders. Right. So, the next   stock is going to be Cloudflare and their ticker  symbol is Net NE. And the reason that we've chosen   them is because they're already quantum defenders.  they already are pushing out and rolling out that   um NIST standard quantum security that everybody  will have to roll out in the near future. And so   that kind of gives them a little bit of a moat and  a little bit of a front run on the whole thing.   And then on top of it, they are really going to  kind of be seen as the security camera slash,   you know, security guard of these new quantum  networks with the direction that they're pushing   their technology. Yeah, this is a name that is  very much associated with cyber security already   and it's still profitable. It's already making  money in some of the other areas. So, is this just   a new area of development for Cloudflare? It's  not really a new area of development for them, but   it is an area that is accelerating. So, they are  um moving to a zero trust type of model. And so,   what you're seeing is you're seeing direct sales  of this model. you're seeing upgrades of this   model and you're seeing continued sales of their  old model as this transition starts to happen. So,   it gives them a lot of room to kind of grow and  transition from the current cloud security model   to the new quantum safe cloud security model. And  they're one of the only players that's already   rolling that out to their customers. And that  innovation is part of the reason the stock is   doing so well already this year. This one is up  about 40% year to date. And that's even off of   the highs that it saw just a couple of weeks  ago. So, this chart feels a little different   than some of the other quantum computing stocks  we're going to be looking at that are all kind of   trading together and all down quite a bit right  now. This one's only on a small pullback from   the recent high. Is it still a good entry point  to be looking at Cloudflare? Yeah, their forward   price uh price to earnings ratio is is pretty  high. And that, you know, kind of indicates that   institutional capital is already frontr running  this story. I mean, that's the whole point of   this is that when you start looking at where the  institutional money is flowing, it's starting to   flow out of AI infrastructure into this quantum  sector because when this whole Qday thing happens,   if we don't have secure systems, it really won't  matter if we have AI because there really won't   be an internet to house AI on if you want to  be honest about the whole thing. Yeah. Again,   this sounds a little apocalyptic, a little Y2Kish,  and yet that's what a lot of people are preparing   for right now is the potential for this quantum  computing breakthrough to really change all of the   security in the internet, which is why companies  like Cloudflare are so important right now when it   comes to the competitive scene. Is Cloudflare  really one of the only players that's paying   attention to that quantum front or are others also  joining that race? Others are definitely joining   that race. And just like every time I I talk to  you about stocks, I like to point out the stocks   that are doing the best and that have the things  that you need to look at when you're looking at   other stocks. They will not be the only player in  this race. That is an absolute guarantee. There   are so many cyber security uh companies out there  that are going to pivot to this. And like I said   before, this will definitely be the next big hype  train that everybody's trying to get on. It's just   still sitting at the station and nobody's on it  yet. Well, I think this last one of the quantum   defenders is an even better example of that of a  stock that very few people are paying attention   to right now, even though this company had a  lot of attention just a few months ago. Yeah,   it's Arctic Quantum and it's um ARQQ and they  they've had a lot of attention recently. They   went through a 1 to25 split. They recently settled  a massive lawsuit for misrepresentation. But I   think if you look at that lawsuit, a lot of it  revolves around kind of like the misconception   of what quantum can do and the understanding of  how the whole quantum security environment works,   right? And so when you're describing  something that's never been done before,   then uh sometimes maybe you misstep. And I  feel like in Arit's defense that that's kind   of a thing that that went through for them that  they kind of misstepped and over represented or   under represented or underexlained what uh the  technology could do. But since then they've kind   of started moving past all of that, right? They  got to get past the litigation, past the split   to actually implement the technology. And the  technology is what's really important. Okay, so   some concerning background on this one, but what  really sets this one apart from the other quantum   defenders that we've already talked about. So  the thing that sets them apart is like Cloudflare   as a service that secures actual systems. IBM is  generating the actual systems, but both of these   uh systems have to be encrypted through the new  quantum standard and that encryption requires   the issuance of an encryption key. And ARKit  is developing the technology to have basically   quantum encryption keys where you have two keys  generated in two places simultaneously making   it impossible for those keys to kind of overlap  within the security environment and also making it   uh quantumly safe to transmit your data through  that particular route. Okay, interesting. A   little high-tech in the weeds there, but for some  people I know that that's going to be a really   good explanation. a little less in the re weeds  and just looking at the technicals of what what's   showing up in their data right now. Um the analyst  forecasts on this one are really interesting.   Again, you you talked about some of the issues  that have led to the stock price decline that   we've seen over the past few months, but it does  feel like analysts are still really bullish on   the future of this company, but I wonder if some  of these price targets are truly a 12 to 18month   price target or if the value they're expecting  the stock to see could be further down the road.   You know, I think this one is like a $60 price  target. And that sounds kind of crazy for 12   months down the line, but this company is such  a micro cap and they're really right there on   that bottom floor. And the thing about it is is  it's only going to take one agency, you know,   the UK defense agency, the US Defense Agency, one  of them to start utilizing their key generation   um algorithms to send this stock on a wild  ride. And then once you start looking at the   need for encryption keys post quantum like post  QA think about every single transaction that you   currently do today from banking to every HTTPS  transaction every single one of those requires   an encryption key and so that encryption key has  to be issued from somewhere and AR's hoping that   that encryption key will start being issued from  them as the industry standard as they build the   mode out as the first you know the front runner.  All right. Well, ART will definitely be one of   those more pure play quantum stocks. Uh, and that  is what we are going to start talking about. Now,   the next three stocks are the ones that are  actually working to build the quantum and break   that algorithm that we've just been talking about  this whole video. There are lots of stocks in this   quantum computing race. And we are going to cover  three of them, but there are plenty of other names   to look at. And we just very recently had a brand  new article in marketbeat.com that you can check   out for free right now. It's on all the quantum  stocks and really an evaluation of how they're   starting to choose sides and whether investors  should be doing the same right now. It's a really   interesting article and you can look at it for  free right now by scanning the QR code or clicking   the link down in the description. Again, this is  a premium article that normally you have to be a   subscriber to Market Beat in order to read, but we  are offering it for free for our YouTube viewers   today. So, if you want to dive a little bit deeper  into the entire quantum picture, this is a really   great in-depth article to do that. Again, check  out that link to get that full list and read that   full article right now at marketbeat.com. Okay,  Jeffrey, let's move on to these quantum players.   Which are the three companies that you are looking  at? Let's start with the first one. All right,   so the first one's going to be ION Q and the  ticker symbol is Zion Q, of course. And the reason   that I chose them is they're the front runner.  Um, they're the leader in commercialization for   a general purpose quantum computer. So they're  the ones that right now I believe probably will   be the first ones to get to the point that you  can actually run this shores algorithm on their   system. And that's kind of why I like them because  I'm interested to see what happens when we finally   get there. Yeah. On Q for anyone interested  in quantum this is absolutely uh not a new   name. It's one of the leaders in the quantum race  right now. It's a name we've talked about plenty   of times on the show before. But what is very new  with INQ is where the price action is right now.   Let's talk about what we've seen in recent months  with this one. Yeah, so the stock has really been   kind of up and down. Um, but recently they had  a really strong earnings report and they also   secured the US National Reconnaissance Office um  contract for radar imaging as well as they put   84 space terminals um into orbit. So this play  is becoming a situation where they're not only   developing the quantum chip, but they're also kind  of developing the quantum hardware that's going to   be needed to pull in the data that this quantum  system will be using. Right? So if you're talking   about using quantum for aerospace, quantum  for outer space, quantum for transportation   routes and stuff like that, you need a massive  amount of real-time data for this quantum chip   to process. and I in Q's already to the point  that they're building that network out. Yeah,   it does seem like they are a step ahead of a  lot of the other players right now. And also   securing some of those contracts is a key part  of getting closer to profitability. Clearly,   they're still spending plenty of money. It's not  a profitable company yet, but they are getting   closer, much closer than some of the other names  we're going to cover and other competitors in the   field. Does that really give them an advantage uh  to maybe winning this race and and getting to that   quantum computing commercialization before others?  You know, it absolutely does. But, you know, I I   think I've mentioned before that this is a this is  a race with many paths. You know, there's so many   different technologies that are being developed  whether it's a kneeling or whether it's photonic   quantum that there are also equally as many use  cases for those different technologies. And so   I feel like there's not really a race winner as  much as there is multiple winners running towards   different end points. And this is a stock I have  been following for a while. It's one I added to my   British buys watch list back in December. This is  my paper trading watch list. If you follow along,   you know I like to add a stock for every video  we talk about. You can scan the QR code if you   want to check that out yourself and and take a  look at the different stocks we talk about on   this channel. Uh it's just marketbeat.com/bidget  to take a look for yourself, but Ionq went onto   that watch list back in December and I'm down  on this name right now. At the time I thought   I was buying the dip and it has gone up since  then and it's gone down again since then. So   even just following the stock since December, I  felt that volatility and I think for investors to   see that the leader in this uh quantum computing  race right now in the US is still this volatile,   it's so hard to know if you're buying the bottom.  It's so hard to know if you're buying at a space   where it's not going to continue to go down from  there. Do you think that's still true right now?   You know, I think that it's still really volatile  and I think that in theory they could go lower,   but you know, when AI was just kind of like  hype, even when computers were kind of hype,   when cell phones were just kind of hype, you know,  there was always this kind of volatility. But once   things started shoring up, right, that volatility  sort of went away and started moving towards the   upside. and it started moving towards the upside  aggressively and we're reaching that kind of like   June 1999 Y2K moment where quantum security is all  anybody's going to talk about you know very soon   it's just going to be the newest buzzword and  these these stocks will take off just from the   sentiment change it won't even be the technology  change right and then once you start moving   towards the actual technological advancement that  quantum is going to bring that hype train is just   going to speed up faster and faster and faster.  And so when you start looking at quantum security,   right, you're you're looking at getting into it  now, right, at the same point as when the first   computer chips actually started working, June 1999  of Y2K, the first time Open AI said hello back,   like those type of situations. That's where  the quantum security market is right now.   It's an exciting time and also still a volatile  time for investors until we get to that point. But   it's an interesting time to be looking at these  names and that shows up in the next stock on your   list of companies in that quantum computing  race right now. This next one is another very   popular name in quantum computing but also still  very volatile and on the downside of volatility   too. Uh so the next one on the list is Regetti and  they are pioneering the superconducting uh quantum   computer process. So it's just another um set of  technologies you know where photonix uses lasers,   Regetti's using super cold chips and and so it's a  different technology but they are pushing towards   the same location that all of the other quantum  builders are and that's to get to a functioning   quantum supercomput that's commercially available.  Yes. But like you said they're going about it in a   different way. There's a lot of different paths  that these companies are working on to to reach   that goal. Where does Regetti stand in comparison  to where ion Q is right now in in reaching that   race? They're a little far behind. You know, I  think superconducting quantum computers are a   little bit more uh difficult basically to build  because you are using super cooling liquid and   that sort of thing versus trapped ion or photonic  lasers. Um, but I think that for the use cases   that they're searching for, the use cases that  they're reaching for, they're right on target   with where they need to be. They've been bleeding  cash for quite a while now, but there's so many   use cases where companies are researching with  their technology that it's only going to take   a breakthrough or two for that to turn around.  It won't take much to turn around, but I think   every investor wants to know when it will turn  around because right now the downward action   in this stock is really concerning, especially  for investors who are buying near the top of the   regetti and the whole quantum computing hype that  was happening a little, you know, closer to last   year. You looking at what analysts have to say,  they clearly see some upside with this company   right now, but we are trading near the bottom of  that 52- week range. Is this really a bottom? Or   like we've seen in some other speculative sectors,  could we see this continue to fall? Is this a   falling knife kind of a stock? You know, I think  it's definitely like a volatile watch. I don't   think it's a a falling knife kind of situation.  I think the Regetti has really been pushing under   kind of like a research cloak kind of thing. And  people are starting to push for them to to kind of   put up or shut up honestly. And it's not just the  investors that are pushing for them to put up and   shut up. It's their board of directors. And that's  why they just added a new COO role and filled it   in so that you can have an operating officer to  help direct the CEO and get this commercialization   track or commercialization timeline back on track.  And it's one of the reasons that I added them to   my list because if they can get back on track and  it looks like they're trying really hard to do   that, it could be definitely a stock that you want  to watch. Before we get on to your last one, one   more question about Regetti. Are they getting any  of that government investment like Ionq has? Yeah,   they absolutely are getting money back through the  um through things like the CHIPS act. They've got   contracts through DARPA and a couple of other US  agencies and so they're starting to see the hype   as well. Yeah, they're getting that government  buy into. That's something for investors to   pay attention to. All right, let's get to the  last name that you have on the list. This is   the last of those uh quantum computing players  who are working to actually break the code the   quickest that you are looking at. Which company  is this? Okay. And so it's going to be D-Wave and   it's QBTS. And just like each one of these other  companies have their own specialty, you know, with   the superconducting or the trapped ion, they have  their specialty as well and it's called quantum   analing. That is specifically a type of analing  that can be used for things like drug discovery   and logistic chains optimization. They're getting  pretty close to that discovery as well. And this   is another name that a lot of people who are  interested in quantum computing have been   following for a while. And the chart action  looks similar to the other stocks that we've   talked about in the same category. And that's on  the lower end. This one has had um maybe less of a   extreme upside compared to what the others saw um  a few months ago. Why have we not seen some of the   same big spikes for this one as we have with the  others? You know, I think that it's because they   um haven't really had any like major catalysts.  They've got a lot of people. So, there are a lot   of big companies that are playing with quantum  right now, right? And they have to figure out   how they're going to use quantum inside of their  business. And as they do that, like companies like   Regetti and IMQ, they're allowing them to utilize  this quantum technology through like the cloud or   quantum as a service type of situation as a  test to benchmark what quantum can do. Just   like with AI, once they realize what quantum  can do, they'll start implementing it in all   kinds of different directions. We're in that lull  right now where only the true believers in quantum   are accumulating. Uh institutional hedge funds  are accumulating. Governments are accumulating,   you know, and that governments and institutional  hedge funds and banks are accumulating these   stocks while issuing out warnings on what this  technology can do. And so that's a major point   where you can say like they're saying that  this is dangerous. they're getting ready for   this particular type of cryptographic situation  and at the same time they're buying these stocks   and accumulating these stocks. Yeah, I think  that the institutional ownership on all three   of these names in the quantum race uh is hard  to ignore. If you are considering these really   speculative names that are still years away from  commercialization, from that major breakthrough   that's going to change everything, you still  have about 40% institutional ownership right   now. And that is a much larger percentage than  you normally see in a truly very very speculative   stock. And so we're we are seeing the institutions  starting to jump onto these names, especially at   the rates that they are right now. Uh also still  seeing a lot of analyst coverage. That's another   thing that people definitely don't always pay  attention to what the analysts have to say,   but it's hard to ignore when companies of this  size are getting this much attention from analysts   and also um having price targets where they  are for these stocks too, right? So, you know,   that's kind of the whole point of the video  today is that, you know, just like with a lot   of these other technologies, this is leaving the  realm of speculation and moving into the realm of   like reality, right? And we're in that transition  phase right now where it's doing that. And that's   what's causing a lot of this, but it's not to  the point yet where it's like the big buzzword,   right? We're still in like January of 1999, but  we're very quickly approaching June of 1999 when   Y2K was all they could talk about. It's it's  very much that situation with this technology   right now. Yeah, these feel like some of those  names that you're going to wish you would have   bought when they were on the low. Uh is this the  lowest they're going to go? It's hard to know,   but they're definitely a group of stocks that  we can see moving higher as these breakthroughs   come. Jeffrey, thank you so much for diving  into this topic today and for the update on   kind of the sleepy quantum computing sector right  now. I think it's a great time for investors to   remember the sector is still out there and those  catalysts are on the horizon. If you want to dive   even deeper into that quantum computing space,  you can get that free article right now on Market   Beat. Just scan the QR code or click the link  we have right in the description to read that   article and dive into some other names in quantum.  We've also covered this topic a few times on the   channel. Our latest deep dive was this one. You  can watch that full interview here to learn even   more about the quantum computing space and  what the future could hold for this sector.