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Alphabet (NASDAQ:GOOGL) shares are up 51% over the past 12 months. But that’s nothing compared to many of the stocks in my quantum computing watchlist. Several of them are up more than 1,000%.

So, why am I talking about Alphabet and quantum computing?

Well, if you’ve been following this rather exciting sector you’ll know that Alphabet — the parent company of Google — is advancing its own quantum technologies, and it’s doing rather well.

Pure-play quantum computing stocks have been in vogue over the past 12 months, but they’re small companies, with relatively short pockets, and often no cash flow.

Alphabet on the other hand is a technology giant. Among other pros, it’s has a huge net cash position of over $50bn. I think its pockets are so deep that it could buy all of the pure-plays and have money left over.

Google’s recent demonstration of verifiable quantum advantage (doing something faster than a supercomputer) with its Willow chip and the Quantum Echoes algorithm is a milestone for quantum computing.

The experiment showed that complex simulations — such as molecular modelling — could be performed thousands of times faster than on the world’s fastest classical supercomputers.

From an investment perspective, this is important because it signals that quantum computing is moving from theory to practical application. In fact, Alphabet believes we will see real-world applications of quantum computing in the next five years.

Companies leading in this space are building a technological and competitive advantage that could one day open up opportunities in pharmaceuticals, materials science, and optimisation problems.

Early adoption could translate into faster innovation cycles and new revenue streams. For investors, breakthroughs like this highlight the potential of quantum technologies to reshape industries and generate long-term value.

For now, I don’t believe Google’s quantum computing achievements are really reflected in the share price. Which is strange because some of the pure-play quantum stocks are trading at ridiculous valuations.

However, if Alphabet continues to deliver these updates as we move towards a real-world application, I have no doubt that it will be reflected in the share price.

Personally, I believe Alphabet is among the best value mega-cap stocks. It’s often wrongly compared with communications peers when it’s really a technology giant.

Looking at the figure, the stock is currently trading around 26 times forward earnings. That’s broadly in line with the information technology sector average.

However, it’s expected to grow earnings by around 16% annually over the medium term, leading to a price-to-earnings-to-growth (PEG) ratio around 1.5. That’s a 15% discount to the information technology sector average.

Concerns? Well, there’s always the impact of AI on Google’s search dominance. Some analysts were concerned that ChatGPT’s Altas programme may undermine Google’s dominance — I’m not sure myself.

Nonetheless, it’s definitely worth considering. It’s well-valued and has many strings to its bow.

The post Looking to beat the market? Quantum computing could lift Alphabet shares even higher… appeared first on The Motley Fool UK.

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James Fox has positions in Alphabet. The Motley Fool UK has recommended Alphabet. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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Result: UNDERVALUED

Head to the Valuation section of our Company Report for more details on how we arrive at this Fair Value for Bank of China.

Our Excess Returns analysis suggests Bank of China is undervalued by 53.8%. Track this in your watchlist or portfolio, or discover more undervalued stocks.

The price-to-earnings (PE) ratio is a favored valuation tool when assessing profitable companies like Bank of China, because it directly relates a company’s market price to its earnings power. A lower PE can signal that a stock is undervalued relative to its profitability, while a higher PE suggests higher market expectations for future growth or increased risk.

Growth outlooks and risk perception both play a role in what is considered a standard or “fair” PE. Companies with higher, more reliable growth tend to warrant higher PEs, while firms in riskier or slower-growing environments usually see lower multiples. Currently, Bank of China trades at a PE of 5.79x. This is below both the peer average of 6.66x and the banking industry average of 6.00x, indicating that the market prices the company more conservatively than many of its rivals.

Simply Wall St’s proprietary “Fair Ratio” refines the idea of appropriate valuation. The Fair Ratio for Bank of China stands at 6.71x, factoring in the company’s unique growth, risks, profit margins, and scale. This serves as a more holistic gauge than simple peer or industry comparison, as it accounts for detailed company-specific financials as well as broader sector dynamics.

Compared to its Fair Ratio, Bank of China’s current PE is just 0.92x lower. This places it very close to what would be considered fairly valued based on the company’s fundamentals and future prospects.

Result: ABOUT RIGHT

PE ratios tell one story, but what if the real opportunity lies elsewhere? Discover companies where insiders are betting big on explosive growth.

Earlier we mentioned that there is an even better way to understand valuation, so let’s introduce you to Narratives. A Narrative is simply your own story or viewpoint about a company, connecting your beliefs about its future growth, profitability, and risks to a clear financial forecast and a fair value estimate. Narratives link the numbers to real-world drivers by allowing you to explain why you think Bank of China’s value will move in a certain direction and compare that story to other investors’ perspectives.

Available right on Simply Wall St’s Community page and trusted by millions of investors, Narratives are quick and easy to use. You can write your case for why Bank of China’s digital innovation, international reach, or economic risks will impact its future, then instantly see how your fair value stacks up against the market price and other users’ forecasts. When new earnings or news are released, Narratives update automatically, keeping your story relevant and actionable. For example, some investors see Bank of China’s urbanization push and digital payments strategy unlocking long-term value, leading to price targets as high as HK$5.90. Others remain cautious about risks like low interest rates and assign a price as low as HK$2.79, highlighting how Narratives can clarify decisions about buying or selling at any time.

Do you think there’s more to the story for Bank of China? Create your own Narrative to let the Community know!

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include 3988.HK.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Uranium Energy (UEC) shares climbed 3% at the open, catching attention after a strong performance this year. With uranium prices in focus across the market, investors are watching to see if this momentum can continue.

See our latest analysis for Uranium Energy.

Uranium Energy’s share price has charged ahead this year, notching a year-to-date gain of 79.3%, and its 3-year total shareholder return sits at an impressive 223.7%. Recent volatility has been part of a broader surge in uranium equities, as shifting sentiment and renewed interest in the sector have pushed momentum higher instead of fading.

If the strength in uranium has you curious, it might be the perfect moment to expand your search and discover fast growing stocks with high insider ownership

The question now is whether Uranium Energy’s rally still leaves the shares undervalued, or if the current price already reflects all of the company’s future growth potential. Is there genuine upside left for buyers, or is the market a step ahead?

At a price-to-book ratio of 6.7x, Uranium Energy shares are trading at a premium to both industry peers and the broader sector. The last close price of $13.66 positions the stock in expensive territory on this metric, prompting a closer look at whether such a valuation holds up given where the company stands today.

The price-to-book ratio measures the market value of a company’s equity relative to its net assets. For resource-focused companies like Uranium Energy, where asset values play a crucial role, this multiple provides an essential snapshot for investors assessing whether the stock’s market value makes sense given its asset base.

Uranium Energy’s price-to-book of 6.7x is above the average for its peer group (5.8x) and far exceeds the broader US oil and gas industry average of 1.4x. This reflects a hefty premium. If the market were to move toward a lower, more typical level, it would represent a significant re-rating lower for the stock.

See what the numbers say about this price — find out in our valuation breakdown.

Result: Price-to-Book of 6.7x (OVERVALUED)

However, if uranium prices retreat or investor enthusiasm subsides, Uranium Energy’s premium valuation could quickly come under pressure and alter the narrative ahead.

Find out about the key risks to this Uranium Energy narrative.

Switching lenses from asset multiples to our DCF model, Uranium Energy appears to be trading almost exactly at its calculated fair value. While the price-to-book ratio signals overvaluation, the discounted future cash flows suggest UEC could be fairly priced. Will the market follow the fundamentals, or do investors still expect more upside?

Look into how the SWS DCF model arrives at its fair value.

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Uranium Energy for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover undervalued stocks based on their cash flows. If you save a screener we even alert you when new companies match – so you never miss a potential opportunity.

If you’d rather dig into the numbers yourself or have a different take on Uranium Energy’s outlook, you can assemble your own view in just a few minutes, and Do it your way.

A great starting point for your Uranium Energy research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.

Put yourself ahead of the curve and open up a world of opportunity with investment ideas handpicked for every strategy. Don’t miss out on these dynamic markets; the next big winner could be just a click away.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include UEC.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Illumina (ILMN) is capturing attention following the debut of its proprietary 5-base sequencing solution and impressive results from GeneDx’s pilot of the constellation platform. Both developments were showcased at the American Society for Human Genetics meeting.

See our latest analysis for Illumina.

Illumina’s shares have seen a notable rebound in recent weeks, logging a 9% gain over the last month as investors responded to a flurry of new product launches and encouraging partnerships. However, the stock is still down 24% on a year-to-date share price return basis, and its one-year total shareholder return stands at -29%, reflecting the longer road ahead for a sustained turnaround.

If Illumina’s fresh innovation streak has you watching the sector, it could be the perfect moment to browse other breakthroughs. See the full list of healthcare movers in See the full list for free.

But with Illumina’s fundamentals still recovering and shares trading below analyst price targets, investors are left to consider: is there real upside from here, or is future growth already priced into the stock?

Illumina’s narrative-based fair value estimate lands at $111.95, which is about $12 above the last close of $100.11. This gap spotlights perceived upside in the current share price versus analyst consensus.

Ongoing innovation, multiomics expansion, and operational efficiency are enhancing gross margins and creating new growth opportunities. Strategic expansion into multiomics, notably the planned acquisition of SomaLogic and integration of proteomics capabilities, creates incremental growth opportunities by increasing the breadth of Illumina’s data and platform offerings, contributing to future revenue and operating margin expansion.

Read the complete narrative.

Curious which bold, forward-looking financial shifts power this valuation? The answer lies in a mix of aggressive margin bets, platform scale-up strategies, and the kind of future earnings moves you might not expect. The most debated projections are all embedded here. Click through to discover what really drives this narrative.

Result: Fair Value of $111.95 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, persistent funding constraints and mounting regulatory hurdles in China still pose meaningful risks that could alter Illumina’s long-term trajectory.

Find out about the key risks to this Illumina narrative.

If you see things differently or want to run your own numbers, it’s quick and easy to craft a unique Illumina outlook in just minutes with Do it your way.

A great starting point for your Illumina research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Expand your horizons now, or you might miss fantastic opportunities shaping the market’s future. Use these targeted ideas to unlock your next big win:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include ILMN.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

Rumble (RUM) has caught investor interest lately as its shares shift slightly after a period of muted returns. The platform continues to generate buzz, prompting a closer look at where its financials and fundamentals stand this year.

See our latest analysis for Rumble.

The past year has been a wild ride for Rumble’s investors. While the share price currently sits at $7.14 after some recent swings, the stock has notched a 25.7% total shareholder return over the past 12 months, even though momentum has cooled from its earlier highs. Despite softer recent price movement, Rumble’s ability to generate long-term gains suggests the market is weighing both its growth potential and shifting risk outlook.

If you’re thinking about branching out from the usual names, consider expanding your toolkit and discover fast growing stocks with high insider ownership

With Rumble’s stock still far below analyst price targets despite recent gains, the debate remains: is there an overlooked buying opportunity here, or has the market already factored in all of Rumble’s future growth?

With the consensus narrative setting Rumble’s fair value at $14.50, the gap from its recent $7.14 close is too wide to ignore for investors watching for a potential breakout.

*The upcoming launch of Rumble Wallet, with integrated crypto tipping and international payments, is poised to increase global user acquisition and drive engagement by tapping new markets where decentralized, creator-driven monetization is highly valued. This could accelerate top-line revenue growth and expand the platform’s total addressable market.*

Read the complete narrative.

Curious what powers such a bullish narrative? The bold forecast hinges on aggressive new features, partnerships, and a financial roadmap packed with ambitious growth assumptions. Will the platform’s reinvention really deliver such outsized upside, or are there hidden risks baked into the price target? Find out which forecasts drive the gap. These could change how you view Rumble’s potential.

Result: Fair Value of $14.50 (UNDERVALUED)

Have a read of the narrative in full and understand what’s behind the forecasts.

However, Rumble’s aggressive global expansion and increasing operational costs could jeopardize its path to profitable growth if ambitious targets are not met.

Find out about the key risks to this Rumble narrative.

Looking beyond fair value estimates, Rumble trades at a price-to-sales ratio of 23.2x. This is much higher than both its industry peers at 1.4x and its own fair ratio of 1.3x. This suggests investors are paying a big premium for future growth. Does this make the risk worth it, or is caution better here?

See what the numbers say about this price — find out in our valuation breakdown.

If you have a different perspective or want to dive deeper into the numbers yourself, you can craft your own Rumble outlook just as quickly. Do it your way

A great starting point for your Rumble research is our analysis highlighting 1 key reward and 2 important warning signs that could impact your investment decision.

Make sure you do not miss out on tomorrow’s market leaders. Take your strategy further and find stocks with strong potential using these ready-made screeners:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include RUM.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• Earlier this month, Brookfield Asset Management and Bloom Energy announced a collaboration involving up to US$5 billion to deploy Bloom’s advanced fuel cell technology for the next generation of artificial intelligence data centers worldwide.

• This partnership signifies a major shift toward integrating reliable, rapidly deployable onsite power with compute infrastructure, aiming to address the surging global energy needs driven by AI advancements.

• We’ll explore how Brookfield’s large-scale investment in fuel cell-powered AI infrastructure could alter Bloom Energy’s projected growth and profitability outlook.

The end of cancer? These 27 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer’s.

To be a shareholder in Bloom Energy today, you have to believe that demand for resilient, scalable onsite power, driven by the AI data center boom, will remain strong, and that Bloom’s solid-oxide fuel cell technology can carve out a significant role even as clean energy competition grows. The recent US$5 billion Brookfield partnership is a headline-grabbing endorsement, but analysts highlight that it is an early-stage memorandum with only gradual impacts expected for near-term results. The greatest short-term catalyst is continued expansion into AI infrastructure, while the biggest current risk remains rapid advancements in zero-emission battery and renewables technologies that could erode the market for Bloom’s natural gas-based solutions.

Among Bloom’s recent client announcements, its agreement to deploy fuel cells at Oracle Cloud Infrastructure data centers stands out, underscoring both urgency in AI-linked power needs and the company’s ongoing traction with marquee technology clients. This supports the thesis that hyperscaler adoption, and successful execution on these high-visibility projects, could quickly influence both Bloom’s revenue outlook and investor sentiment.

But just as the opportunity in AI is growing, investors should also watch for signs the market could shift if the pace of battery innovation accelerates…

Read the full narrative on Bloom Energy (it’s free!)

Bloom Energy’s outlook anticipates $2.7 billion in revenue and $395.4 million in earnings by 2028. This scenario is built on analysts’ assumptions of a 19.0% annual revenue growth rate and an earnings increase of about $371.7 million from the current $23.7 million level.

Uncover how Bloom Energy’s forecasts yield a $76.83 fair value, a 30% downside to its current price.

Simply Wall St Community members assigned fair values ranging from US$15.38 to US$230.14, with nine individual perspectives captured. While investor opinions vary widely, many are factoring in risks from rapidly evolving zero-emissions technologies that could impact future growth, making it crucial to compare both sides of the argument.

Explore 9 other fair value estimates on Bloom Energy – why the stock might be worth over 2x more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

The market won’t wait. These fast-moving stocks are hot now. Grab the list before they run:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include BE.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

• eInfochips and NXP Semiconductors recently announced a multi-year collaboration to provide software distribution, tools, and support services for NXP’s S32 family of microcontrollers and microprocessors.

• This partnership emphasizes NXP’s growing focus on enabling faster customer application development and strengthening its role in software-driven automotive and industrial platforms.

• We’ll examine how NXP’s commitment to software solutions through this alliance may reshape the company’s growth outlook and investment narrative.

Outshine the giants: these 27 early-stage AI stocks could fund your retirement.

To own shares in NXP Semiconductors, it helps to believe in a sustained rebound in global automotive and industrial semiconductor demand, as well as NXP’s ability to leverage advanced software solutions in these sectors. The recently announced collaboration with eInfochips to accelerate software distribution for S32 platforms is a meaningful nod to this vision, though it is not expected to materially shift the primary near-term catalyst, which remains the normalization of automotive Tier 1 inventory levels. The key risk, weak end-demand recovery and modest revenue performance, remains unchanged and central for shareholders to monitor.

Of the recent announcements, the multi-year partnership with eInfochips stands out for its alignment with the company’s ambition to drive software-enabled innovation in automotive and industrial solutions. While this announcement reinforces NXP’s positioning in software-driven automotive platforms, the bigger immediate catalyst continues to be improved order visibility as inventory headwinds ease across core automotive customers, a development closely awaited by investors.

Yet, with persistent concerns over customer inventory normalization possibly stalling if macro conditions weaken, it’s essential that investors understand the risk posed by…

Read the full narrative on NXP Semiconductors (it’s free!)

NXP Semiconductors’ narrative projects $15.5 billion revenue and $3.5 billion earnings by 2028. This requires 8.7% yearly revenue growth and a $1.4 billion earnings increase from $2.1 billion today.

Uncover how NXP Semiconductors’ forecasts yield a $258.19 fair value, a 18% upside to its current price.

Ten fair value estimates from the Simply Wall St Community range from US$187.08 to US$294.09 per share, showcasing wide disagreement on future possibilities. With inventory recovery as a decisive catalyst, it’s worth considering how quickly opinions can shift among market participants, explore these differing perspectives to inform your view.

Explore 10 other fair value estimates on NXP Semiconductors – why the stock might be worth as much as 34% more than the current price!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

Right now could be the best entry point. These picks are fresh from our daily scans. Don’t delay:

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Companies discussed in this article include NXPI.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com

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Chinese carmaker Geely wants to sell 100,000 cars a year in the UK and would consider local production as it aims to take on Tesla and BYD in Europe’s second-largest market for electric vehicles.

The UK has become a battleground for European expansion by Chinese carmakers because of strong EV sales and the absence of import tariffs.

“Currently the UK market is more open and a friend for Chinese brands,” Michael Yang, the head of Geely Auto UK, told the Financial Times.

Geely would aim to launch 10 electric and plug-in hybrid models over the next three years and sell about 100,000 cars a year in the UK, he said in an interview. This would give it a market share of around 5 per cent in the country. BYD and Tesla have a share of around 2 per cent each this year.

“In the future, if we find that local production has more of an advantage, why not do that? We are open about that,” he added, saying the company planned to hire about 300 workers in the UK.

Geely Auto is a Hong Kong-listed unit of privately held Geely Holding, one of the world’s biggest auto groups, with stakes in Volvo Cars, Polestar, Lotus, London black-cab maker LEVC and Aston Martin.

The first Geely car to be sold in the UK will be the all-electric EX5 sport utility vehicle, a rival to Tesla’s flagship Model Y, with a starting price of £31,990. 

The UK government has been courting Chinese carmakers to produce in the country. But it has had little success so far because of the high cost of energy and labour compared with other locations such as Turkey, Hungary and Spain, which have managed to attract Chinese groups to build European production hubs.

The UK is aiming to produce 1.3mn vehicles a year by 2035, almost double the 755,000 units the Society of Motor Manufacturers and Traders expects to be made this year.

Hitting the target will require new manufacturing. Chinese brands have become a focus as established groups grapple with various problems.

Nissan, which owns the largest UK plant, is downsizing its global operations because of financial difficulties. Jaguar Land Rover’s production had to be halted for more than a month following a cyber attack, which caused vehicle output in the UK to fall 36 per cent in September, according to the SMMT.

Meanwhile, the UK has become BYD’s biggest market outside China with sales increasing nearly 10-fold in a year, according to the latest data.

Chery, another Chinese carmaker, which sells the Chery, Omoda and Jaecoo brands, accounted for nearly 4 per cent of new car sales last month, compared with 0.4 per cent just a year earlier.

When asked whether Geely would consider using existing LEVC and Lotus manufacturing facilities for new UK production, Yang said: “It all depends, but hopefully we can use the existing plant. It’s easier.”

Lotus said earlier this year that it would pull out of manufacturing in the UK. This decision was later reversed but it has been talking with other carmakers about building models at its plant in Hethel in eastern England. 

Yang also said that the various Geely brands would not cannibalise each other since they all target different customers.

“Volvo and Polestar, they are more like premium brands and Lotus is a performance car,” he said. “LEVC in the UK is for the iconic taxi, so Geely is focusing more on the mainstream.”