Exploring Growth Investing: The Future of Quantum Computing and More

The Three Pillars of Growth Investing Today

The other week, I was chatting with a friend who works at one of the most advanced quantum computing companies. Our conversation drifted, as such discussions often do, from physics breakthroughs to investment implications. If quantum computers truly deliver on the promises of the labs—solving problems that classical machines would take centuries to crack—then the ripple effect across industries will be enormous.

From there, we zoomed out to what many see as the three pillars of growth investing today:

1. Semiconductors (Chips)

No chips, no future. From smartphones to electric cars to AI data centers, semiconductors are the backbone of modern technology. This sector is cyclical and volatile, but every wave of innovation builds upon it. As the demand for technology continues to rise, the semiconductor industry is expected to grow significantly.

2. Artificial Intelligence (AI)

The hype surrounding AI is loud, but the applications are real. AI is transforming industries by automating workflows and creating new products and services. While a few giants dominate the field, entire ecosystems of smaller firms are racing to monetize the AI wave. This creates numerous investment opportunities for those looking to capitalize on this trend.

3. Quantum Computing

Quantum computing is still experimental, but it holds the potential to be transformative. If the technology scales, it could disrupt sectors such as pharmaceuticals, logistics, finance, and cybersecurity. For now, it’s more promise than profit, but investors who believe in the long game are paying attention. The potential of quantum computing is vast, and its implications could reshape entire industries.

Building a Growth Portfolio

Together, these three themes can be combined into a growth-oriented investment strategy. We looked at ETFs as practical vehicles:

• SOXX for semiconductors,

• AIQ for artificial intelligence,

• QTUM for quantum computing.

  
  

An equal split creates a portfolio that is bold, futuristic, and—let’s be clear—volatile. This approach allows investors to tap into the potential of these high-growth sectors while managing risk.

Monte Carlo Reality Check

To stress-test this €50,000 portfolio, we ran a Monte Carlo simulation: 5,000 possible futures over 10 years, assuming historical-style growth and volatility. The results were intriguing:

• Median outcome: ~€195,000

• 10th percentile: ~€139,000

• 90th percentile: ~€500,000

• Mean: ~€338,000 (inflated by extreme winners)

  
  

The distribution is skewed: a few paths look spectacular, but the more realistic center of gravity sits around a 3–4x increase. This analysis highlights the importance of understanding potential outcomes when investing in high-growth sectors.

Core vs. Satellite Allocation

This exercise isn’t about replacing your whole portfolio with high-tech themes. It’s about completing a satellite allocation: the orange “growth bubble” that complements your core portfolio of diversified global equities, bonds, and other stabilizers.

Growth investing can be exciting and rewarding, but it works best as a satellite—adding upside potential without compromising the stability of your financial foundation.

For more about the Core-Satellite approach, refer to: What Should My Portfolio Look Like as an Expat in Hungary.

Conclusion

In conclusion, the landscape of growth investing is evolving rapidly. With the rise of semiconductors, artificial intelligence, and quantum computing, there are ample opportunities for investors. By understanding these sectors and employing a balanced investment strategy, you can position yourself for success in this dynamic market.

Disclaimer

The content of this article is intended for educational purposes only and does not constitute personalized financial advice. The strategies discussed are most effective when understood within the broader context of the investment principles covered in my advisory course. If you haven’t attended the course, I strongly recommend doing so before applying any of the ideas presented here.