The $2 Billion Quantum Boom Just Got BIGGER: 2 Stocks to Buy Now

A few months ago the US government put more than $2 billion to boost quantum computing. This kicks off one of the biggest new technology investment opportunities of the next decade. At the time I told you something you probably didn't want to hear, which is not to buy the pure play quantum stocks. That's because they were obscenely overpriced for companies living on more hype than substance. Since then our choices have become much, much more interesting. That's because it's no longer just about a small speculative companies to consider. We now have two huge tech companies making big moves into quantum. This greatly increased the odds they can turn this technology into a massive commercial opportunity, which bodes well for investors as well. In this video I'll show you what's changed in the quantum story, where I currently stand on the big pure play quantum stocks, and then we'll close out with the two companies I think could have huge upside potential if the quantum money keeps flowing in their direction. Now, before we get too far along I want to briefly introduce myself. I'm Steve Right Meister, but everyone calls me Righty. I've been investing for over 40 years and currently a partner at Wall Street Zen Dao .com, where our quant rating system identifies stocks with the highest likelihood to outperform the market. Now, if you like timely stock market topics like this one, then please hit that like button, as it tells me to record more videos along these lines in the future. Okay, let's get back to the quantum investment story as it just got way bigger, right? Here's the quick recap. In May the US government pledged more than $2 billion to nine companies involved in building America's quantum computing industry. This marked one of Washington's biggest investment commitments yet to technology. Those companies included IBM, Global Foundries Rigetti D-Wave and Quantinuum. Washington wants to build a domestic quantum industry before any other country does. So, what we're talking about here is a quantum arms race, and they want to win. I'm keeping this recap short and sweet, but you can see my original take in the video linked in the description below. Turns out the government backing was only the beginning of the story, because for this technology to become a massive commercial opportunity, businesses need a a way to actually use it. And that's where the story took a huge step forward starting with Oracle with the symbol of ORCL, right? Quick aside before I continue, if you enjoy discovering uh stocks aligned with current events like this, then the best thing you can do for yourself right now is sign up for my next live training session this coming Monday. The focus on timely market insights plus my top picks. Now, it's totally free, but you do need to register. Do that now to join me this coming Monday. Just go to wallstreetzen.com/live. Back to Oracle. They just announced a major partnership with uh Quantinuum, which is one of the world's leading quantum computing companies. Now, the plan is to put uh their Helios quantum computer inside an Oracle cloud data center, where businesses will eventually be able to access the awesome computing power through the cloud. And that's potentially a huge step forward because instead of quantum computers being confined to specialized labs, Oracle wants to put that power accessible to the same cloud infrastructure businesses already tap into. That could open quantum computing to far more companies, and that greatly increases the revenue and yes, the profit potential. So, is Oracle a stock to buy amidst all this quantum interest, right? Probably not. And that's because I ran Oracle through our Quant Ring system, which analyzes every stock by 115 different factors tied to stock price outperformance, and then distills it down into an intuitive letter grade of A through F. Then we share seven underlying component grades to reveal a stock's unique strengths and weaknesses. Now, indeed, you want to have a portfolio loaded with A-rated stocks as they have historically outperformed the S&P 500 by nearly 3 to 1. Sadly, Oracle only earns a C rating amounting to a hold recommendation. That's because right now, they rank in the bottom 40% of all stocks analyzed. This greatly decreases the odds of future share price strength, which is why I often say that C means see you later. Okay. Gladly, this isn't the end of the road because Oracle isn't the only tech giant making this type of move. This brings us to Hewlett Packard Enterprise uh with a symbol HPE, which recently expanded partnerships with eight different quantum companies. Now, the goal is to integrate quantum processors with the supercomputers and AI system HPE already built. And HPE is a serious player here. It built six of the 10 most powerful supercomputers in the world. So, now we have the government money pouring in, plus Oracle bringing quantum to the cloud, and Hewlett-Packard Enterprise working to connect it with some of the world's most powerful computers. Quantum is starting to move from just a science experiment towards an actual commercial ecosystem. So, is HPE worth buying? Well, you'll want to stay tuned because that topic deserves more conversation, which I will get to in just a moment. But, first I want to answer another burning question. Are the pure play quantum stocks finally worth buying with all this news? As you may recall, the last time I ran these stocks through our quant system in my last video, well, the results were pretty low ratings across the board. But, it's worth doing an update given all the recent developments. So, I ran the numbers on some of the biggest pure play names to find out where they stand now. And, yeah, they all stink, right? Let's start with INQ with a symbol of OINQ, which is always part of any quantum conversation. They recently made headlines after being selected to compete for work under the Missile Defense Agency's $151 billion Shield contract supporting the Golden Dome. Sadly, the song remains the same with this one as it earns a rock bottom F rating from our quant model scoring in the bottom 2% of all stocks, right? 98% of stocks are more attractive than this one after that full 115 fundamental factor review. Ouch, indeed. It doesn't get much better as we look at quantum computing with a symbol of QUBT. That also earns an F rating. And just for the record, the F rating stocks have averaged a 12% annual loss going back the past three decades. So, it's worth staying away from those companies. D-Wave Quantum with a symbol QBTS it steps up a notch to a D rating. But, that lowly grade scores in the bottom 9% of all stocks and also leads to underperformance and a stock to stay away from. Righetti a D, Quantinuum a D. All right, so so I'm not going to keep going on. After reviewing them through the Zen ratings, the story has not improved. So, here's the main takeaway. The quantum story has gotten much stronger in the big picture of things. Unfortunately, the pure-play quantum stocks have not. Gladly, this is not the end of our quantum investment story. We just need to move our focus to where the growth and fundamentals better line up for investors. Let's start that conversation with Dell Technologies and you know the symbol. Yeah, that Dell that we all know cuz we probably had one of their PCs or multiple PCs from them over the years. A quick ask before I dig in with why Dell is such an interesting quantum opportunity. If you're finding value in this video, then chances are you will enjoy my other videos as well. The best way to ensure that you see them is to take a moment to hit that subscribe button and the notification bell. Thank you very much. Let's get back to Dell as they are a greatly different company than we remember because it's no longer just about low margin PCs. Now, it's in the middle of the AI revolution as one of the biggest suppliers of advanced servers for all those new data centers. But, it's also positioning itself to provide the classical computing power quantum systems needed scale including the real-time processing required for quantum error correction. Dell's PowerEdge infrastructure has already achieved the ultra-low latency needed for real-time quantum error correction. So, if quantum takes off as expected, then Dell could win big by supplying the powerful infrastructure running alongside the quantum computers. And here's the best part. Dell doesn't need quantum to succeed, right? That's because their an existing business already booming. This is just a bonus on top, right? Cherry on top as it were. The The that things are already in great shape for Dell was on full display in the most recent quarterly earnings report. That's because revenue surged 88% year-over-year and profit surged 214%. Remember, this is a big company, right? AI server demand was a big story, up 750% year-over-year. Business is so good in this area that they just keep raising guidance again and again. So, this is a company already riding on the enormous and life-changing revolutions in artificial intelligence with a potential foothold in the next wave in quantum. So, for as strong as shares have been of late, Wall Street experts still see a lot more room to run. All in all, there are 14 analysts issuing buy or strong buy recommendations on Dell, but I want to focus on the most bullish call from Mandeep Singh at Susquehanna. This analyst ranks in the top 1% of all of his peers based upon actual stock picking performance, meaning that when he talks, it pays to listen, and he is pounding the table on 45% more upside for Dell shares in the year ahead. Our Zen Ratings Quant model backs that optimism as well. Dell earned an overall A rating because it scores in the top 4% of stocks we track thanks to its strong fundamental profile. Yes, top 4%, not bottom 4% like the other speculative pure plays named we already discussed a little earlier in the video. The component grades reveal the broad fundamental strength of these shares starting with the top 18% showing for financials. Then we make a big leap forward top 3% for sentiment. That means the smart money is on board. Growth comes in the top 2%. That's consistency of growth and the standout is momentum in the top 1% all stocks track. This points to a well-run company loved by the smart money crowd, and they are already very timely shares. Now, the risk with Dell is the same as all folks enjoying the AI spending boom. If that party slows, then everyone in the ecosystem will feel the pain, including Dell, right? However, current signs point to the AI spending cycle increasing, and Dell is as well-positioned as any firm. Now, layer on top the further growth potential for Quantum and you have a much more intriguing investment opportunity in these shares. Now, my next pick also ranks highly in the Zen Rings model, but before I get to it, just a quick thing. If you want to stay one step ahead of the market, then join me live every Monday because that's when I share my updated market outlook and trading plan to outperform. This is also where I unveil my trade of the week based upon our proven Zen Rings quant model and my greater than 40 years of investing experience. Now, it's a free event, but you do need to register. You can do that now by going to wallstreetzen.com/live or click the link in the description below or scan the QR code coming up on your screen. Just pause the video for a moment. I'll be patient and wait for you and then I look forward to seeing you there on Monday. Now, I'm going to circle back to a stock I talked about a little bit earlier in the video, that being the bullish case for Hewlett Packard Enterprise with a simple HPE. This is a stock that I actually recently added to my Zen Investor Newsletter portfolio, which includes 20 of my highest conviction stocks. I think you'll see why in a moment. We already talked about HPE's direct connection to this exciting growth trend. Right now, it's working with eight different quantum companies to combine quantum processors with the supercomputers and AI infrastructure it already builds. That's an interesting position because HPE doesn't need to predict which quantum technology ultimately wins. Instead, they're spraying their bets around, which is a pretty sound strategy. As quantum computing scales, then Hewlett Packard Enterprise could help provide the infrastructure that connects these machines to the rest of the computing world. But meanwhile, this isn't some struggling company hoping quantum eventually saves its bacon, right? Hewlett Packard's existing business is already gaining serious momentum much in the same way as Dell thanks to surging AI demand. In the most recent quarter, earnings handily beat expectations once again and the growth party isn't slowing down. Management now expects 29 to 33% revenue growth for the full year driven heavily by AI servers and networking, right? That's the same high performance infrastructure that could put Hewlett Packard right in the middle of the quantum build up. And Wall Street very much likes what it's seeing. That includes 11 analysts issuing resounding buy and strong buy recommendations. The highest price target comes from Wamsi Mohan of uh Bank of America. That's important to note because he is ranked in the top 1% of all analysts based upon his truly stellar stock picking track record. So, so it's worth noting how bullish this stock picker is on HPE shares because he is currently calling for 40% more upside to fair value in the year ahead. Likely even more upside if their quantum bet really starts to pay off. The Zen rating smiles broadly on these shares leading to an elite A rating. This comes from being the top 3% of all stocks for its impressive fundamental profile. Yes, better than 97% of the stocks, which is pretty darn good starting point for any investment conversation now. As we turn to the component grades, it's not hard to see why it earns this elite A rating. Momentum ranks the top 9% reflecting extremely strong price action over the past year. Sentiment ranks in the top 7% as the smart money is firmly on board these shares. But the standout grade, as it should be, is the top 3% showing for growth. This is the best category to score highly in because it greatly increases the odds of future earnings beats, which usually leads to future share price gains. Hewlett Packard Enterprise has the same risks as Dell when it comes to any potential AI spending slowdown. However, the reward is so greatly higher than those risks. Not just the current AI growth. Not just the Wall Street support. Not just the stellar Zen rating's review, but also their bet on quantum that may pay off big time in the years ahead. The bottom line here, the quantum story has only gotten bigger, but that still doesn't mean the obvious quantum stocks are the best ways to play it. Dell and Hewlett Packard Enterprise give you two great ways to potentially profit from the quantum build up. Yet in the meantime, they are already thriving companies smack dab in the middle of the AI boom. This greatly increased the odds of shareholder success. Now, I want to hear from you. Would you rather bet on one of the uh speculative pure play quantum stocks, or would you rather go for a tried-and-true players like Dell and uh you know, Hewlett-Packard? Let me know your preference and why down in the comments section below. And if you want to explore more stocks with a quantum connection that are actually worth your time, then check out the video coming on your screen right now.