Quantum Computing Inc. (NASDAQ:QUBT) has drawn renewed investor attention after being tapped as the stalking horse bidder for selected remaining assets of Luminar Technologies as part of the latter's ongoing Chapter 11 process.This comes amid a growing bullish consensus among analysts for the stock, leading to a surge in the company’s Momentum score in Benzinga’s Edge Stock Rankings.Quantum Computing Stock Sees Spike In MomentumThe Momentum score in Benzinga’s Edge Stock Rankings is essentially a sign of st ...

Industry Outlook - The semiconductor industry is adjusting expectations for 2026 following a significant rally in 2025, where the PHLX Semiconductor Index increased by over 40% [1] - Mizuho's 2026 outlook report indicates that while the easy money has been made, there are still investment opportunities beyond the well-known industry leaders [1] Investment Focus - Mizuho continues to support established companies like Nvidia (NVDA) and Broadcom (AVGO), while also highlighting Lumentum (LITE) as a less crowded investment opportunity benefiting from industry trends [2] - Hyperscalers' capital expenditures are projected to rise by 32% year-over-year to $540 billion in 2026, which will positively impact sectors such as optical interconnects and photonics, where Lumentum operates [2] Company Profile: Lumentum - Lumentum is an optical and photonics specialist based in San Jose, California, providing essential components for data center interconnects and cloud connectivity, which are increasingly important due to AI processing expansion [3] - The company has a market capitalization of approximately $24 billion, positioning it as a noteworthy player that is often overlooked compared to larger semiconductor firms [3] Stock Performance - Lumentum's stock has shown dynamic performance, currently trading around $350, with historical fluctuations between $46 and $400, reflecting the cyclical nature of the optical market and evolving views on AI infrastructure costs [4] - Despite the S&P 500's limited upside, market sentiment can change significantly as network capacity becomes constrained [4] Valuation Metrics - Lumentum's stock is considered highly valued based on traditional metrics, with a forward price-to-earnings ratio of 89 and a price-to-sales ratio of 15 [5] - The critical factor for market participants is whether the growth narrative driven by optics and AI architecture can lead to a revaluation in the optics sector, rather than merely a contraction in multiples due to widespread AI adoption [5]

Core Viewpoint - The discussion emphasizes the critical need for power in the context of expanding data centers, particularly in Texas, and highlights the potential of photonics and quantum computing to address these challenges [1][4][6]. Power Demand and Supply - Open Air requires 20 gigawatts of power, costing $16 billion for every 2 gigawatts [1] - Texas is experiencing a grid problem, complicating the expansion of data centers [3] - Oracle's co-CEOs noted that the challenge lies in supply rather than demand, as data centers cannot be built quickly enough to meet the growing needs [4] Photonics and Quantum Computing - Cohere is focused on photonics for quantum computing, which adds complexity to the power requirements [6] - The company has launched a strategy called macro cycle opportunities, targeting themes such as space, robotics, quantum, and nuclear, all integrated with AI [6] Investment Strategies - Quanta Services has a $36 billion backlog for modernizing existing power grids [8] - The portfolio construction includes established leaders (40-50%), enablers (20-25%), and speculative names (10-20%) to mitigate risk [10] Market Dynamics - The expectation for transformation in technology is significant, with predictions of more change in the next decade than in the last century [9] - Meta's pivot to AI and its impact on revenue generation remains uncertain, despite attracting high-level talent [14][15]