In the past year and more, NVIDIA has undoubtedly been the most eye-catching among technology stocks.

Not only has the business made substantial profits, but investors are also delighted. However, after the stock price surged many times, even surpassing Apple several times to become the world's largest by Market Cap, NVIDIA's performance has shown some stagnation.

From an investment perspective, NVIDIA's Market Cap has already exceeded 0.03 million dollars, and it is indeed difficult to expect it to double. This does not mean that NVIDIA will be 'out of the game,' but without further catalysts for profit enhancement, it is unlikely that the Market Cap will replicate the rise of the past year.

Moreover, past experiences have repeatedly proven that when Infrastructure is completed, the demand for Semiconductors may slow down. Additionally, Semiconductors are always a cyclical Industry, and the cyclical nature is like a sword hanging overhead; NVIDIA is likely not to escape it.

Although there are optimistic views suggesting that, considering the AI Industry has just begun, along with NVIDIA's absolute high position in the entire Industry Chain, it may evolve into a business model with long-term Cash / Money Market inflows, similar to Cloud Computing, which may counter the cyclicality of Semiconductors, nonetheless, the best investment stage for NVIDIA has already passed.

Given this, searching for the "Newland Digital Technology" in Technology investments naturally becomes a concern for everyone.

But where exactly is this "Newland Digital Technology"?

01

"Newland Digital Technology" has already appeared?

First, let's briefly review how the "Newland Digital Technology" in Technology investments emerged in the past.

In a word, it appears during the emergence of a new industrial revolution.

Let's talk about the past four years; we have witnessed two Technology revolutions: one is electric vehicles, and the other is AI.

These two revolutions have spawned many bullish stocks, such as Tesla and NVIDIA overseas, as well as the Lithium Battery Industry Chain and Optical Modules domestically.

Therefore, asking where the next investment "Newland Digital Technology" is, is equivalent to asking where the next Technology revolution is.

There has always been a forward-looking perspective in the industry. Recently, when Dr. Ge Long interviewed Dr. Kaifu Li, the latter clearly stated that the next Technology revolution will be Quantum Computing.

Why Quantum Computing?

Because Quantum Computing can solve two problems that have troubled computer technology: one is computing speed, and the other is encryption.

The method is to break the most fundamental digital units of computation that can only be "0" or "1", achieving the simultaneous existence of stable states of "0" and "1", i.e., quantum bits.

This state was actually achievable before, but the error rate was relatively high. It must be reduced to a "threshold" below which this stability can be achieved.

If this "threshold" issue can be resolved smoothly, the speed and security of computation will increase significantly, and many problems that were previously limited by this factor will also be solved.

For example, the speed of drug development will accelerate; the previous rule of "1 billion dollars in 10 years" may change to "0.3 billion dollars in 3 years". Moreover, the long-standing Moore's Law may be overturned, where chip computing performance doesn't need to double in 18 months; it could possibly double in just 1.8 months. Additionally, data storage and computation can be conducted more securely. Of course, another important aspect is that the training speed of AI may also increase significantly, and many applications may have the opportunity to be commercialized ahead of time.

Recently, Google announced its latest Quantum Computing chip, Willow, which has caused a huge stir in the Global Technology community, even prompting tech giants like Musk and Ultraman to exclaim "wow".

How impressive is Willow exactly?

Let's put it this way, Willow has solved a key problem that has persisted for many years, significantly reducing errors exponentially when scaling up with more quantum bits; in the RCS standard testing benchmarks, Willow can complete computation tests in 5 minutes, while today's fastest computers would require at least 1025 years for the same tests.

This breakthrough demonstrates the immense development potential of Quantum Computing in computational power and marks the entrance of Quantum Computing technology into a new era.

In fact, many large Technology companies have already made moves in Quantum Computing. Besides Google, there are also Microsoft, Amazon, IBM, and others. These companies will undoubtedly benefit directly or indirectly from Google's breakthrough, allowing various research and applications to arrive sooner.

Of course, as investors, what everyone is most concerned about is what opportunities in Quantum Computing can match those of Apple, Tesla, and NVIDIA as 10x stocks.

02

Where are the 10x stocks?

When it comes to investment strategies in Quantum Computing, they are actually a continuation of the previous IT industry.

It can be described as a combination of "Hardware + Software" or as a combination of "Infrastructure first, then applications." From the PC era of Wintel, to the Smart Phone era with Qualcomm + Apple + Android, and now to the AI era with NVIDIA + OpenAI, it has always been this way.

Apple's ability to break the fate of PC manufacturers having their "soul" controlled by others is actually based on its self-developed chips and operating system.

This is determined by the characteristics of IT because information technology is primarily about processing information, with chips serving as the core of information processing, and software systems acting as the instruction set for performing various operations; together, they are the core of the IT technology framework.

When investing in IT, one should focus on these two cores.

So where are the chips in the era of Quantum Computing? And where is the software system?

Google has already provided the answer for chips, and certainly other companies may follow, especially those like NVIDIA, which are likely to produce similar chips. It will be quite difficult for Google to monopolize this market alone.

We can also expect AMD and Intel, which have slightly weaker capabilities, to launch their own Quantum chips; how competitive they will be, we can only wait and see.

Regarding Software, it is believed to be a competition among large Technology companies, with traditional software giants like Microsoft, Google, and Apple being formidable contenders.

It can be said that these two major fields are all about competition among giants, with smaller companies essentially appearing only as suppliers.

There may be doubts about whether these companies, with such large Market Caps and insufficient elasticity, can really achieve high return rates.

If you think this way, it is suggested to look back to 2007, when Apple's Market Cap was over 170 billion dollars; although lower than the then highest valued Energy company (500 billion dollars), it was still quite significant in the Technology sector.

Now, Apple's Market Cap is 3.75 trillion dollars, which is equivalent to a 20-fold increase over the past 16 years. The reason is that Apple launched the Smart Phone, almost single-handedly initiating the great era of the Mobile Internet.

Therefore, there is no rule that large companies cannot grow. As long as they can present good technology and products in the new Technology growth track and gain market recognition, even elephants can dance.

Of course, in terms of stock elasticity, smaller companies may be somewhat higher.

For example, a recently popular company, Quantum Computing, specializing in photonic full-stack Quantum Computing and solutions, has seen a rise of over 700% this year; the world's first commercial Quantum computer supplier, D-Wave Quantum, has increased by 428%; the pioneer of full-stack Quantum Computing, Rigetti Computing, has surged over 354%; the industry leader in Quantum Computing, IonQ Inc, has risen by 176%; the Quantum Technology company Kunten has surged over 127%; and Arqit Quantum, focusing on Quantum encryption technology, has also seen its stock price nearly double.

IonQ predicts that by 2030, the Quantum Computing market size will grow to 65 billion dollars and will rise to 850 billion dollars by 2040, with a compound annual growth rate of 30%. (Note: The mentioned stocks are for illustration only and not recommendations.)

Quantum Computing has become another force that is changing the world.

In fact, many tech giants have already made investments in this field, including Microsoft, Amazon, IBM, and others. With Google's breakthrough, the commercialization of Quantum Computing may explode in the near future.

This force will also be reflected in our country and is likely to become another blue ocean technology track after New Energy and AI.

As for specific symbols, no comments will be made here, as many research reports from major brokerages are already available.

It should be pointed out that besides technology companies with market caps like Google, Microsoft, and Amazon, many current Quantum Computing concept stocks have relatively small market caps. For example, the price of the previously mentioned Quantum Computing rose ten times from the end of October until now, with a market cap of only 0.63 billion dollars, and domestic concept stocks are similar.

The downside of these stocks is their extreme volatility; it is advisable to position at low levels and to be cautious about chasing high prices.

Additionally, portfolio allocation should focus on a mix of 'large and small' stocks; for stable investments, a larger proportion should lean towards large tech stocks like Google and Microsoft, while a smaller proportion can be allocated to small companies, allowing for aggressive approaches as well as defensive strategies, effectively reducing volatility while maintaining flexibility.

03

Conclusion

As a Technology investor, the pursuit of the next technological revolution always unveils enormous investment opportunities.

Whether it was last year's AI, or the electric vehicles from earlier, or even the Smart Phones and PC Internet from further back, looking solely from a profit perspective, seizing the timing to invest often results in a snow-covered slope, making it effortless to gain for years, and the high investment returns speak for themselves.

Although such opportunities cannot come every day, the investment logic can be simply replicated, and the investment strategy can remain consistent.

The same formula, the same taste, what's new is just the repetition of the old, or rather, its continuation.

Now, while AI is still emerging, a new round of industry revolution seems to be right in front of us.

Often, we hear investors complain about always missing the opportunity to get on board. However, the advantage of the stock market is that the "bus routes" do not change, and new technological revolutions will always occur. Therefore, there is no need to feel regret for missing a particular "bus", because there will always be the next one; just pay attention to the timing, wait patiently, and when the bus arrives, get on it.

Just like those who missed out on Apple, they later had the opportunity with Tesla, and those who missed Tesla, eventually encountered NVIDIA.

Even in the midst of a technological revolution, investment opportunities do not just happen once; many chances will appear repeatedly in between, and as long as one is captured, there will be good investment returns.

Currently, Quantum Computing is constantly demonstrating its power to change the world, making it yet another technological wave that cannot be missed. (End of text)