Zacks Equity Research has spotlighted four technology stocks positioned at the heart of the escalating U.S.-China competition over advanced technology.
NVIDIA (NVDA), Micron Technology (MU), D-Wave Quantum (QBTS), and Rigetti Computing (RGTI) each offer exposure to different layers of the emerging U.S.-led technology ecosystem.
The broader contest spans artificial intelligence, quantum computing, semiconductors, critical minerals, and control of strategic technology supply chains.
A key escalation came on Aug. 14, when Reuters reported that Washington is preparing to urge countries in the U.S.-led AI cooperation to choose between the U.S. and China’s competing technology ecosystems.
The effort builds on Pax Silica, a U.S.-led initiative aimed at securing supply chains for AI, semiconductors, and critical minerals.
The International Monetary Fund projects 3% global GDP growth in 2026, with China’s economy expected to expand at 4.6%, according to its July Economic Outlook.
The IMF notes that AI-driven demand is supporting economies integrated into the global technology value chain, even as the Middle East conflict weighs on activity and global disinflation has stalled.
The Federal Reserve maintained the federal funds target range at 3.5%-3.75% on July 29, noting that inflation remained elevated relative to its 2% goal while productivity and capital investment stayed strong.
U.S. nonfarm payrolls fell by 23,000 in July, sharply below expectations, though the unemployment rate edged down to 4.1% as labor-force participation declined, according to the U.S. Bureau of Labor Statistics.
NVIDIA remains the dominant supplier of accelerated computing for AI infrastructure, with fiscal first-quarter 2027 revenues surging 85% year over year and Data Center revenues jumping 92%.
The company guided fiscal second-quarter revenues of approximately $91 billion, though the outlook assumes no Data Center compute revenues from China, with results due Aug. 26.
NVIDIA carries a Zacks Rank of 2 (Buy), with projected earnings growth of 99.1% for the fiscal second quarter and revenue growth of 96.2%, while its average price target of $305.85 implies a 35.93% gain from its last closing price of $225.01.
Micron Technology (MU) delivered fiscal third-quarter 2026 revenues of $41.46 billion, up sharply from $9.30 billion in the prior-year period, with Cloud Memory revenues reaching $13.77 billion.
Micron said its strong results and outlook reflect the strategic value of memory in the AI era, with the company also supporting the broader push to strengthen semiconductor capacity.
MU also holds a Zacks Rank of 2, with earnings growth projected at 935.9% for the fiscal fourth quarter and revenue growth of 348.6%, and an average price target of $1,496.09 representing a 47.87% premium to its last close of $1,011.75.
D-Wave Quantum (QBTS) reported first-half 2026 bookings surging 1,120% year over year, with production applications accounting for 37.3% of quantum-computing-as-a-service revenues, up from 9.8% a year earlier.
Second-quarter revenues were marginally down year over year, affected by the early stage of commercialization, though rapidly expanding bookings offer a potential long-term catalyst.
QBTS carries a Zacks Rank of 3 (Hold), with 82.9% earnings growth projected for the third quarter of 2026 and 5.7% revenue growth, and an average price target of $35.79 representing a 71.47% increase from its last close of $20.87.
Rigetti Computing (RGTI) reported second-quarter 2026 revenues of $5.1 million, up from $1.8 million a year earlier, with cash and available-for-sale investments totaling $541.3 million at quarter-end.
The company also signed a U.S. Department of Commerce letter of intent for up to $100 million over three years to support quantum research and development, strengthening its strategic positioning.
RGTI holds a Zacks Rank of 3, with earnings growth projected at 71.9% for 2026 and revenue growth of 246.4%, and an average price target of $29.55 representing a 58.28% increase from its last closing price of $18.67.
