Quantum mania hit Wall Street last week, as reports surfaced that the Trump administration was considering taking equity stakes in a number of quantum companies. Though the news was subsequently denied by the U.S. Department of Commerce, that didn’t stop a number of pure-play quantum stocks from jumping upward on the news.
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Of course, there are other firms that are pursuing quantum computing advances, including familiar names such as Microsoft (NASDAQ:MSFT).
Could Microsoft be one of the quantum names that investors should be considering? Investor Bram Berkowitz believes they absolutely should. His reasoning: MSFT is a safer investment than pure-play, “all-or-nothing” quantum companies.
“That’s what’s great about owning Microsoft. The company has so many other strong tech businesses that have made it one of the largest companies and stocks in the world,” declares the 5-star investor.
Berkowitz details the many different arms of Microsoft, including its cloud business, artificial intelligence, gaming, hardware, and its well-known suite of Microsoft Office products.
Moreover, Microsoft is also at the forefront of the AI revolution, meaning that it has plenty of other opportunities for growth going forward.
“If quantum doesn’t work out, that’s OK,” adds Berkowitz.
That’s not to say that the investor is throwing in the towel when it comes to Microsoft’s quantum ambitions – far from it. He cites Microsoft’s Majorana 1, its first-ever quantum computing chip, which it introduced earlier this year.
This chip was seen as a breakthrough by many, Berkowitz explains, as the production process allowed the Majorana to avoid interference with its qubits. Microsoft also divulged that it plans to fit 1 million qubits on its chips.
Berkowitz does acknowledge that the AI hype has driven MSFT to an elevated valuation, so it’s a distinct possibility that a pullback could be forthcoming. For those thinking longer term, however, the answer is clear.
“Microsoft certainly isn’t going anywhere and will likely be a part of any tech or AI revolution down the road,” sums up Berkowitz. (To watch Bram Berkowitz’s track record, click here)
There is almost complete unanimity on Wall Street when it comes to MSFT. With 33 Buys, and nary a single Hold or Sell, MSFT coasts to a Strong Buy consensus rating. Its 12-month price target just prior to its Q3 2025 earnings report Wednesday after the market closes is $628.70, which implies gains approaching 20%. (See MSFT stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.