Gotrade News - Hyperscaler capital spending on AI infrastructure is driving rotation into utility and quantum computing names. New beneficiaries are emerging outside mega-caps like Microsoft (MSFT) and Amazon (AMZN).
Key Points
- BMO Capital raises Black Hills (BKH) price target to $91 from $84.
- IonQ posts 2025 revenue of $130 million with 202 percent growth.
- McKinsey projects the quantum market reaching $72 billion by 2035.
Utilities Emerge as Unexpected Winners
BMO Capital analyst Edward DeArias lifted his Black Hills Corporation (BKH) price target to $91 from $84. DeArias maintained an Outperform rating after Microsoft acquired data center land in the utility's service territory.
DeArias said the Microsoft opportunity plus continued hyperscaler interest could extend BKH's growth trajectory. BKH currently offers a 3.79 percent annual dividend yield backed by what the analyst called a strong balance sheet.
The utility-side thesis broadens the beneficiary map beyond mega-cap names like Nvidia (NVDA). Data center power demand is becoming a fresh catalyst for regional US utilities.
IonQ and the Quantum Bet
IonQ (IONQ) reported 2025 revenue of $130 million, up 202 percent year over year, per The Motley Fool. The company guided 2026 revenue to a range of $225 million to $245 million.
Commercial clients now make up over 60 percent of IonQ sales with international clients at 30 percent of total. IonQ also logged a world-record 99.99 percent two-qubit gate fidelity benchmark.
McKinsey projects the quantum computing market expanding from $4 billion in 2024 to $72 billion by 2035. IonQ has a roadmap targeting 2 million physical qubits and 80,000 logical qubits by 2030.
The company has secured four Air Force Research Laboratory contracts worth roughly $100 million each. However IonQ trades near 96 times sales with a $510.4 million net loss reported for 2025.
Hyperscaler capex from Alphabet (GOOGL) to Meta (META) keeps fueling massive data center buildouts. The theme is pulling capital into power, cooling, and next-generation compute ecosystems.
