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The $8 Trillion Computer Revolution Continues

As I’ve predicted, quantum computing investment is intensifying. Last week, news broke that International Business Machines (IBM) has partnered with Quebec’s provincial government to deploy Canada’s first-ever quantum computing facility (though it’s IBM’s fifth quantum installation worldwide). The Quebec facility is expected to help advance the fields of battery development, artificial intelligence, microelectronics, and Cloud deployment. Michael’sresearch has already identified some of the top company’s investors can buy to maximize their profit potential on this mega-trend.

On Deck This Week: Earnings from the Largest Crypto Stock

These past few weeks have made the megacaps seem like microcaps with their 20%-plus daily swings. Last week, Meta (FB) booked its largest one-day drop in history, losing over $200 billion in market cap. On the other hand, we saw Alphabet (GOOG) and Amazon.com (AMZN) – worth a combined $3.4 trillion – add more than $100 billion in market cap; Google jumped 10% on strong earnings and Amazon rocketed nearly 20% in after-hours trading. Both of these FANG constituents saw strong growth in their Cloud divisions, which is a bullish sign for other software-as-a-service (SaaS) companies. As Michael predicted exactly this kind of performance last week, we have a positive atmosphere for the rest of earnings season.

This week promises to be no less eventful. We’ll hear from automotive chip supplier ON Semiconductor on Monday, but Michael is looking forward most to Coinbase (COIN) on Tuesday. We could see a big surprise here. You see, Coinbase makes its money on crypto trading. While Bitcoin and many of the major cryptos have dropped recently, that volatility has sparked the kind of trading volume that puts companies like Coinbase deep in the green.

Strategic Tech Updates

Tension in Europe, Profit Catalysts at Home

“Will Russia invade Ukraine?” is the global geopolitical question of the moment. The United States has put 8,500 troops on alert and moved 3,000 troops closer to Ukraine, where they’re all but eyeball to eyeball with an estimated 175,000 Russian personnel. The international tension has added fuel to the volatility roiling U.S. and global markets, but it’s important to keep this in mind: Historically, defense stocks have done well in times of tension and conflict. Congress recently boosted its military budget by $25 billion, bringing the full spend to $768 billion. While this is good for big players like Boeing (BA), Raytheon (RTX), and General Dynamics (GD), it’s extremely bullish for an under-the-radar defense company I’m watching right now.

Cloud Earnings Growth Is Just Ramping Up

One of the most important investor takeaways from the current round of tech earnings is this: The Cloud is still growing extremely fast, and by all accounts its biggest profits lie ahead. Amazon Web Services delivered almost 40% growth in the Q4 2021, Microsoft‘s Azure platform (MSFT) rose 46%, and Google’s Google Cloud saw total deal volume grow over 80%. No doubt that’s great news for these specific stocks, but Michael believes that when it comes to the Cloud, the “pick and shovel” plays – the suppliers – can deliver even bigger profits. That’s why we always come back to one of his favorite stocks. This company supplies chips to Cloud data centers all over the planet.