Jeff Brown’s Quantum Computing Stocks – Parabolic Profits?

Tech investing legend Jeff Brown thinks one technology will have a greater impact than artificial intelligence.

It's quantum computing and its about to get a short term catalyst that will be a flashpoint for a few “Quantum Computing Stocks.”

The Teaser

There's many misconceptions out there about quantum computing, which Jeff wants to clear up.

Since triumphantly returning to his namesake Brownstone Research last summer, Jeff has been kicking ass and taking names.

He's put out such teasers as the Texas Royalty Plan and Elon Musk's Silent Partner Stock, which have produced some decent picks.

The first thing Jeff wants us to know about quantum computers is that they are the real deal.

They tap into quantum physics, which is literally matter and energy at the fundamental level to identify patterns and structures in information, and solve problems once thought impossible.

This extends to biological protein folding, which is the process of repairing cells and faster and more accurate financial calculations that catch fraud and de-risk investments.

However, many of the most popular quantum computing stocks, such as IonQ

And D-Wave Systems

Have had majors run-ups on account of quantum computing's potential.

These are not the stocks that Jeff is teasing.

So, while quantum isn't a fad and it could be even bigger than AI, the way to get rich from it is to buy into businesses that are making it a reality and still trading at reasonable valuations.

Not only this, but Jeff argues that we ought to buy into a new technology around the time of a “flashpoint,” right when it is about to begin an exponential phase of progress.

This is where the “quantum flashpoint” comes in and it could be right around the corner.

The Pitch

Jeff is teasing three specific names in a new report called The Quantum Flashpoint: Three Stocks Set to Go Parabolic.

The only way to access it is with a subscription to the Exponential Tech Investor newsletter, which costs $2,300 upfront for the first year (more than half off the regular price of $5k).

*Update* Jeff's offer is now closed, so the regular retail price of $5k is in effect.

What is the Quantum Flashpoint?

Similar to capital, innovation compounds on itself.

Since the advent of an esoteric sound box called a ‘radio' before the turn of the last century, the time to mass adoption of new technologies has shrunk from an average of 30 years down to less than a decade.

All of these inventions had their “flashpoint,” when years of progress happen in mere months and the technology takes off.

For the internet, the flashpoint came when Netscape went public in 1995.

AI had it's flashpoint in 2022 when ChatGPT was first released.

Now, quantum computing is about to have it's time in the sun too.

According to Jeff, the first stage results of DARPA's Quantum Benchmarking Initiative (QBI) will be the “quantum flashpoint.”

The Quantum Benchmarking Initiative

The same federal government agency that developed the precursor to the internet is at it again.

This time around it is spearheading an initiative whose chief aim is to determine if it’s possible to build a commercially viable quantum computer faster than conventional predictions.

The initiative is working with about 20 companies that need to progress through three stages: 

• Stage A: Describe a utility-scale quantum computer concept that has a plausible path to realization in the near term.
• Stage B: Develop a Research and Development Plan capable of realizing the utility-scale quantum computer.
• Stage C: Work with the government to verify and validate that their utility-scale quantum computer concept can be constructed and operated as intended. 

The first stage of this process is due to conclude within the next few weeks and the announcement of a workable quantum computer concept could lift all boats in the sector.

But it will be especially beneficial for a few under the radar quantum computing stocks that Jeff is confident will go “parabolic.”

Revealing Jeff Brown's Quantum Computing Stocks

In his hour and thirty-minute long video presentation, Jeff describes his picks in some detail.

Starting with one stock he calls:

The NVIDIA of Quantum Computing

• This company makes a special type of chip that will become essential to every single company operating online.
• It makes hardware and software that come with built-in quantum-resistant security.

The second clue gave it away, this is SEALSQ Corp. (Nasdaq: LAES).

• Earlier this year the Swiss semiconductor company unveiled the “world’s first quantum-resistant secure hardware.”

Quantum Sensing Disruptor

• The company makes sure that quantum computers operate at peak performance, without errors. 
• It has no debt and is already working with major customers like Boeing, NASA, Lockheed Martin, US Air Force, Army, and Navy.

This one is much tougher, a company called Q-CTRL focuses on improving the performance of quantum computers by addressing issues like error rates and stability, but it is privately-owned.

The closest public match is Infleqtion, which is in the process of merging with special purpose acquisition company (SPAC) Churchill Capital Corp. and going public through the back door.

• Infleqtion makes precision sensors that are stable and accurate in tracking performance.
• On its website, it boasts about NASA, the U.S. Army and Navy being clients.

The Quantum Refrigerator

• The last company makes a special kind of refrigerator, a cryogenic device called a dilution refrigerator that keeps quantum computers from overheating.
• It is already working with the likes of Micron and Taiwan Semiconductor (TSMC).

Fortunately there aren't too many public companies like this around. Jeff is teasing FormFactor Inc. (Nasdaq: FORM).

• FormFactor offers the industry’s most comprehensive lineup of cryogenic refrigeration products for quantum applications.
• TSMC is among its confirmed clients. I wasn't able to find anything regarding Micron.

Parabolic Profits from Quantum Bits?

All roads, it seems, lead back to DARPA.

A paragraph on the agency's Quantum Benchmarking Initiative website caught my attention and may contain the answer to the trillion dollar question – when will quantum computing be commercially viable.

validate if any quantum computing approach can achieve utility-scale operation i.e. its value exceeds its cost…by the year 2033

If I were a betting man like NBA players and coaches, which I'm not, I'd bet that quantum computing's “flashpoint” comes sometime between 2030-2040.

As for Jeff's quantum stock picks, none have annual revenue that exceeds $30 million, never mind any kind of earnings, except for one.

FormFactor made nearly $16 million in profits in fiscal Q3 from it's semiconductor test and measurement products, which are totally unrelated to quantum computing.

However, at a forward price/earnings of 31x, we would be paying quite the premium for a business with no discernible competitive advantage in any of its business segments.

There's being early and then there's showing up the day before the party.

This feels like the latter, but if your timeline is long enough (years and decades), there is money to be made in quantum bits and its worth exploring the space further.

Quick Recap & Conclusion

• Tech investing legend Jeff Brown is teasing a flashpoint in one technology that will have a greater impact than artificial intelligence and a few “Quantum Computing Stocks” will be the big winners.
• The “quantum flashpoint” catalyst will come when DARPA announces the results from the first stage of it's initiative to find a commercially viable quantum computing solution.
• Jeff believes the first stage results are just around the corner and three stocks will go “parabolic” following the announcement. They are all named in a new report called The Quantum Flashpoint: Three Stocks Set to Go Parabolic. We need a $2,300 subscription to his Exponential Tech Investor newsletter to get it.
• Fortunately, you don't need to go spending thousands of dollars just for these names because we revealed them for free – SEALSQ Corp. (Nasdaq: LAES), Infleqtion (Churchill Capital Corp. X) (Nasdaq: CCCX), FormFactor Inc. (Nasdaq: FORM).
• Commercial quantum computing is at least 5-10 years away. None of Jeff's picks have revenue above the $30 million mark or any quantum computing-related earnings.

How soon will the first quantum computer retail? Give us your best guesses in the comments.