The stock market is off to a solid start of 2024, with the S&P 500 (SNPINDEX: ^GSPC) index gaining more than 5% year to date. As software giants lead the charge amidst the continued AI tools boom, not every remarkable winner is a familiar household name.
Three Motley Fool contributors with profound tech knowledge converged to unveil their market’s best-kept secrets. Explore why they ardently recommend adding shares of AI-driven automation expert UiPath (NYSE: PATH), payment-processing specialist Shift4 Payments (NYSE: FOUR), or quantum computing innovator IonQ (NYSE: IONQ) into your portfolio right about now.
Revolutionizing Automation with UiPath Studio
Anders Bylund (UiPath): In the realm of robotic process automation (RPA), UiPath stands out as a rapidly expanding sector infused with substantial AI proficiency. Setting foot in this critical market early can pave the path for long-term lucrative success.
UiPath is devoted to providing a platform for automating business processes, translating RPA concepts into practical applications. The centerpiece of their endeavor, UiPath Studio, offers an integrated development environment for constructing AI-controlled software robots to streamline tasks and workflows.
Renowned for its user-friendly graphical interface, diverse automation endpoints, and swift development process, UiPath Studio empowers clients to transition from pinpointing an automation requirement to activating production-grade automation within mere months. This seamless trajectory is attributable to the intuitive control system and an extensive collection of prefabricated templates for task automation.
The company may not stand alone, but UiPath Studio shines as a proven victor. For example, tech behemoth Microsoft (NASDAQ: MSFT) has its own RPA tool, the Power Automate. Nonetheless, UiPath remains a preferred choice whenever a client seeks an enterprise-grade automation solution.
“Microsoft has named us their preferred automation partner,” proclaimed UiPath CFO Ashim Gupta at a recent industry conference, highlighting Microsoft’s acknowledgment of UiPath’s prowess in sectors such as automating claims processing and invoice-to-cash cycles.
This resounding endorsement from one of the world’s most competent software players signifies UiPath’s exceptional value proposition. When even a tech powerhouse like Microsoft struggles to replicate or surpass a software tool’s capabilities, you know something exceptional is afoot.
Consistently outperforming analyst forecasts, UiPath epitomizes a shareholder-friendly disposition regardless of economic conditions. For investors seeking a robust AI investment capable of weathering all market seasons, UiPath emerges as a prime choice at present.
PATH Revenue (TTM) data by YCharts
Ascending to the Quantum Computing Stratosphere
Billy Duberstein (IonQ): While artificial intelligence dominates current conversations, the potential disruption of AI by a novel computing paradigm looms on the horizon.
Enter quantum computing, a realm where an atomic ion, through quantum “qbits,” can process exponentially more data than a standard electronic transistor that merely toggles between “1” and “0.” Despite Nvidia‘s (NASDAQ: NVDA) inclusion of 80 billion transistors on its H100 GPU for AI, these transistors can only convey binary data.
Quantum computing, if harnessed effectively, could tackle problems beyond the reach of even the mightiest AI supercomputers.
The elusiveness of a quantum revolution stems from the complexity inherent in the technology. However, progress inches closer daily, spearheaded by IonQ, the foremost player in the industry. With a market cap slightly exceeding $2 billion, IonQ stands as the largest publicly traded pure-play quantum computing firm.
Various methodologies exist in quantum computing, and IonQ opted for a seemingly straightforward path to commercialization via an atomic ion trap technique. In this process, an ion is levitated within an electromagnetic field, subjected to laser activation, and measurements of quantum state probabilities ensue. Unlike the synthetic materials other quantum contenders are exploring, atomic ions are intrinsic. Moreover, trapped ions can process data at ambient temperatures, a stark contrast to other methodologies necessitating near-absolute-zero temperatures.
IonQ’s strategy gains momentum, underscored by the company’s recent announcement of achieving the milestone of a #AQ 35—representing a 35 algorithmic qbit system—one year ahead of schedule. This achievement is pivotal as it signifies the threshold where quantum computing purportedly surpasses traditional computers for specific applications.
In a significant move, IonQ finalized construction of a quantum manufacturing facility and secondary quantum data center near Seattle. This development enables ubiquitous access to its quantum system across major cloud platforms.
Traversing the precipice where quantum computing rivals—if not surpasses—traditional computing for certain applications, coupled with robust partnerships and technological advancements, positions IonQ as a pivotal player in the quantum realm.