AI infrastructure spending and growing commercial interest in quantum computing are creating significant opportunities for investors as third-quarter earnings season gets underway.
AI companies continue to benefit from heavy spending on data-center and computing infrastructure, while quantum computing gained further commercial traction and government support during Q3.
The two sectors remain worth watching even as higher interest rates and inflation concerns continue to pressure growth-stock valuations across the broader market.
AI offers the stronger near-term earnings case, while quantum provides a potentially much larger long-term opportunity but carries considerably higher execution risk.
Within AI, U.S. core capital-goods orders excluding aircraft increased 1.6% in August, following a revised 0.6% gain in July, while rising 10.6% year over year.
FWDBONDS chief economist Christopher Rupkey summed up the trend plainly, stating, “The AI investment boom is real and it is carrying the economy along with it.”
The U.S. Energy Information Administration expects total U.S. electricity sales to increase nearly 2% in 2026 and another 2% in 2027, with data centers contributing to record consumption.
On the quantum side, the Department of Energy launched its Quantum Genesis Q competition with up to $215 million in planned funding to accelerate development of fault-tolerant quantum computers capable of at least 100 logical qubits.
The initiative also includes a $45 million testbed program, further cementing government commitment to advancing commercially relevant quantum computing applications.
The Federal Reserve’s September projections showed a 2026 median federal funds rate of 4.1%, up from 3.8% in June, with the median PCE inflation forecast rising to 3.7%.
August CPI increased 3.4% year over year, with core CPI up 2.4%, according to the Bureau of Labor Statistics, adding pressure on growth-stock valuations in both sectors.
Semtech Corporation (SMTC) provides semiconductor products and connectivity solutions used in data centers, high-performance computing, and communications infrastructure across global markets.
In the second quarter of 2026, Semtech’s data-center sales were up 39% sequentially and 91% year over year, an impressive acceleration that management expects to continue into Q3.
Management guided third-quarter data-center sales to rise 45% sequentially and 160% year over year, with overall third-quarter revenues guided to $410 million, up 54% year over year at the midpoint.
Non-GAAP EPS for Q3 is projected at $1.05, representing a 119% year-over-year increase, while the Zacks Consensus Estimate stands at $1.06 per share, implying 120.8% year-over-year improvement.
Third-quarter estimates for Semtech have been revised upward by 45.2% over the past two months, and the stock currently carries a Zacks Rank #1, designated as Strong Buy.
D-Wave Quantum (QBTS) develops quantum computing systems and related services designed to solve complex optimization and other computational problems for enterprise clients.
First-half bookings for D-Wave surged 1,120% year over year, while production applications accounted for 37.3% of first-half quantum-computing-as-a-service revenues, signaling growing commercial adoption.
During Q3, D-Wave expanded its AT&T relationship and secured access to up to $100 million under the CHIPS and Science Act, bolstering its financial position and strategic reach.
The Zacks Consensus Estimate for D-Wave’s Q3 results is pegged at a loss of 9 cents per share, implying a 78.1% year-over-year improvement, with revenue consensus at $3.95 million suggesting 5.7% growth.
D-Wave currently carries a Zacks Rank #3, or Hold, reflecting its earlier-stage commercial profile compared to Semtech’s more immediate revenue conversion and profitability trajectory.
