My No. 1 Stock “Behind” Quantum Computing’s Rise

1 SPECIA L REPORT. My No. 1 Stock Behind . Quantum Computing's Rise By Jeff Brown A Brownstone Res ea rch Pub lica tion Special Report 2021. My No. 1 Stock Behind Quantum Computing's Rise By Jeff Brown, Editor, The Near Future Report What the hell's a portable cell phone? in the future of communications. That's what Rudy Krolopp asked his boss, Marty It took the team close to 12 weeks to fully test Cooper, when Cooper told him he had six weeks and build the phone. to build one. On April 3, 1973, Cooper made the first call on This conversation happened deep in the halls of a portable cellular network. He called his main Motorola's research and development center in rival, Joel Engel at Bell Labs. He said, Joel, this December 1972. At the time, Cooper headed up is Marty! I'm calling you from a cell phone, a real Motorola's communications systems division.

2 Handheld portable cell phone.. Krolopp was a lead designer with the company. While this was a huge win for Motorola, the Krolopp's engineering team of eight men had company didn't generate any revenue from this to design a phone and how the entire wireless invention for 10 years. And it cost them over network would work, something that had yet to $100 million in development costs. That's a be done in 1972. After all, what good is a fancy quarter of a billion in today's dollars. That was new phone without a network to work on? a big gamble, especially for a company that was only worth about $2 billion at the time. And time was of the essence . Very few companies have that kind of capital AT&T was already in talks with the Federal or patience to put vast sums of money into the Communications Commission (FCC) to build development of an unproven technology with a wireless networks for its car phones.

3 At the 10-year time horizon. time, the car phone was a 30-pound box of communications equipment people shoved into But this paid off for Motorola. At the beginning the trunk of a car. The user could then operate of 1983, the company was trading at $9 a share. the car phone via a controller attached to the By 1993, the Stock was trading at $62 a share. dashboard. And at its peak, the share price was $220. That's a 2,300% gain from 1983 levels. Cooper knew cellular phones could be more portable. And he didn't want the FCC to approve By investing well into the future, Motorola was these networks, giving AT&T a virtual monopoly able to double its Stock price, on average, every The Near Future Report 2. years in the '80s and '90s. out there, it's important that readers know I'm truly committed to the world of bleeding-edge This report's company has the same mentality.

4 Technology. It's always looking forward at least five years. It was investing in its 5G products in 2014, years With this research service, we look for stable, before the 5G rollout would bring in revenue. mid- to large-cap companies with products enabling the newest technological trends. We can And now it's developing its products for 6G and think of these as sleep well at night stocks with Quantum computing. great growth potential. This forward-looking mentality has turned the In the past years, we've covered technology company into a powerhouse in its industry. trends like 5G, artificial intelligence, and cloud- based software services. Nearly every large tech firm in the world uses the testing, measurement, and verification And in this report, we're focusing on one trend equipment of this company to speed along that has exploded over the past year: Quantum research and development of bleeding-edge computing.

5 Technological innovations. Devices Are Getting More Complex And we're investing in this visionary company. We'll profit in the near term from the record Before I share more about how the levels of investment happening right now in recommendation in this report will shape 5G wireless technology. And as you'll see in a Quantum computing, let's take a step back to moment, we'll have early exposure to 6G wireless look at the bigger picture. Understanding these technology and Quantum computing. broad technology trends is a key part of our success here at The Near Future Report. Welcome to The Near Future Report Today, our electronics are getting smaller, Welcome to The Near Future Report. I'm Jeff faster, and more powerful. Consider the bulky Brown, your editor. car phones from the 20th century I mentioned earlier.

6 Now compare that to the small, ultra- For nearly 30 years, I worked as a technology powerful smartphones in our pockets. executive for firms like Qualcomm, NXP. Semiconductors, and Juniper Networks. I've Just as these devices get more powerful and earned degrees from Purdue University and the compact, the components inside become more London Business School. complex. We can just look at the difference in complexity between 4G and 5G devices. I've also received professional certificates from MIT, Stanford, and most recently the University Longtime readers will need no reminding. But of California, Berkeley, School of Law. And I am for newer readers, 5G is the next generation of also an alumnus of Yale University's School of wireless technology. And 5G will be 100 times Management. faster on average than our current 4G networks by the time the new wireless networks are I'm also an active angel investor in early stage completely built out.

7 5G is a game changer and technology companies. I've invested in dozens one of the best investment trends of this decade. of private deals. I don't tell you all this to brag. But with so many so-called technology experts 5G devices will work on 5G networks, but they The Near Future Report 3. also need to work on 4G and 3G networks. That's because United States Radio Frequency Allocations the 5G network build-out will take several years to be fully constructed. And while the 5G infrastructure is being built out, 5G devices will occasionally have to fall back . onto 4G and 3G networks when a 5G (or 4G) network signal isn't accessible. This creates significant engineering challenges. Dedicated radio frequency (RF) semiconductors are needed for a phone to connect Source: FCC & Millimeter Wave Wireless Communications to each of these wireless networks.

8 And each network As the world adopts 5G wireless technology, the operates at different frequency bands. Basically, frequencies used become even more complex. 5G. the phone needs to be able to filter out and spectrum ranges from low-band frequencies in focus on just the right frequencies in order to the ultrahigh frequency (UHF) range all the way connect to the network. Once the phone does up to the millimeter wave (mmWave) frequency so, it can make calls, send and receive messages, bands that start at 24 Ghz (gigahertz). and access the internet. The higher the frequency, the higher the power Wireless network operators purchase or license and performance and the more precise the the rights to operate their wireless network over electronics need to be to filter the RF signals on a specific area of the RF spectrum.

9 The spectrum smartphones, 5G antennas, and 5G base stations. is typically thought of as a public good. Each And keysight technologies (KEYS) this country's government usually regulates the report's recommendation develops the test and spectrum and harmonizes it with adjacent measurement equipment used to develop, tune, countries to avoid unwanted signal interference. and maintain 5G wireless networks. Wireless The problem is, when data traffic continues to network engineers literally can't do their jobs grow exponentially doubling again and again without keysight . more efficient technology and additional spectrum are required to avoid network congestion, which keysight Goes Back Over 80 Years results in dropped calls and signals. Even though keysight is a fairly new company, The spectrum allocated for services transmitted having gone public in 2014, it can trace its origins over RF is jam-packed.

10 The image above directly back to the formation of tech stalwart will give us a feeling for how busy the radio Hewlett-Packard in 1939. In fact, HP's first spectrum is. It represents the United States products were electronic test and measurement market, but most countries have similar equipment what keysight still does today. spectrum usages and allocation. The Near Future Report 4. Over the years, HP expanded into computers, These tests would show how a 5G wireless printers, servers and other electronic devices network was performing. and got away from its roots as a test and measurement company. To streamline It's not a perfect comparison, but we can imagine operations, the company decided to focus on just a car diagnostic device. A car diagnostic tool can its computer and printer businesses in 1999.