Top Stocks in Quantum Computing and Robotics for 2025 Growth

The U.S. stock market has shown impressive gains over the last five years, with the S&P 500 recording double-digit growth in four of those years. This bull market has largely been driven by advancements in artificial intelligence (AI) and specialized semiconductor chips. However, many of the leading tech companies now have high valuations that could make investors cautious about entering the market.

For instance, Nvidia, a leading semiconductor company that is significantly driving the AI sector, has a forward price-to-earnings (P/E) ratio exceeding 31. Similarly, Microsoft, which is advancing the field of artificial general intelligence (AGI) through its partnership with OpenAI, has a forward P/E ratio above 34. Both of these valuations are significantly higher than the S&P 500's forward P/E of 24.1.

This environment is prompting investors to explore opportunities outside the established tech giants. Instead of investing heavily in leading AI companies, there is a notable trend of funds flowing into related sectors that stand to benefit from AI development, such as energy infrastructure, enterprise software, industrial automation, high-performance computing, and robotics.

This strategic repositioning is understandable. As AI technology continues to integrate into different hardware and software platforms, the standout companies of 2025 might come from small and mid-cap firms that are innovating within these sectors. Here, we will look at two companies that seem well-placed to benefit from advancements in next-generation AI by 2025 and beyond.

A Leader in Quantum Computing

IonQ (IONQ 12.80%) is at the forefront of quantum computing, a technology leveraging quantum mechanics to solve intricate problems beyond the capabilities of the most powerful supercomputers today. IonQ's shares have impressively surged by about 173% in 2024 (as of December 13), reflecting growing optimism about its trapped-ion quantum technology, which has potential for massive commercial use.

According to projections from McKinsey & Co., the quantum computing market is on track to reach $173 billion by 2040. This remarkable growth is expected to be fueled by quantum computing's ability to transform various fields, including drug discovery, financial modeling, cryptography, and crucially, advancing AI technologies.

Despite IonQ's market cap of $7.32 billion suggesting high expectations for a company still in the early stages of revenue scaling and technology development, the potential of quantum computing is substantial enough to make this a worthwhile risk for long-term investors. Recent partnerships with industry leaders and government entities underline strong interest in IonQ's trapped-ion approach.

In the future, quantum computing has the potential to unlock significant value by providing solutions to complex problems that have puzzled scientists and engineers for years. IonQ’s unique trapped-ion technology combined with its robust cash reserves of $382.8 million indicates it could play a major role in this emerging market.

AI-Powered Urban Delivery

Serve Robotics (SERV 15.34%) brings an AI application into daily life through its autonomous sidewalk delivery robots. The company’s systems utilize advanced AI algorithms for navigation and obstacle avoidance, improving as the technology itself evolves.

Serve Robotics has been making strides recently, including raising $32.3 million in new funding in the third quarter of 2024 and expanding its collaboration with Uber Eats to roll out 2,000 robots by the end of 2025.

Industry forecasts estimate that the market for autonomous delivery robots may rise to $450 billion by 2030. By integrating increasingly sophisticated AI models into its robots, Serve Robotics is positioned to capture a sizeable portion of this growing market.

With a market capitalization of $579 million, Serve offers attractive valuation metrics given its technological edge, expanding partnership with Uber, and the vast opportunities available in automated urban delivery. The company’s strategic role in the automation of delivery services suggests substantial growth potential, especially as AI technology continues to advance and become a fundamental part of everyday life.

Technology Meets Opportunity

IonQ and Serve Robotics serve as compelling options for investors looking to capitalize on the growing capabilities of AI. IonQ’s advancements in quantum computing could significantly enhance AI systems’ data processing abilities, while Serve Robotics exemplifies how AI can transform daily activities such as food delivery. Both companies are in the early phases of their growth trajectories, targeting extensive markets that could reward investors willing to endure some short-term volatility.

stocks, quantum, AI, technology, delivery