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Quantum Computing Drives Tech Stocks as Investors Eye 2026

Market Movers: The Opening Bell

December 19, 2025

Video Transcript

Markets are near record highs after a CPI report that came in below estimates with signs of easing price pressures.

Investors are eyeing that rate cuts as well as liquidity support and possible fiscal stimulus to drive stocks higher.

Now strong consumer spending a healthy labor market and also solid productivity are also supporting earnings growth.

Well joining me as we keep a close eye on the tech sector this morning is Steven or AKA the big beat founder and CEO of Quasar Markets.

Steve, great to have you here.

Thank you so much for joining me.

Thanks.

Thanks for having me.

What a week it's been, the final full trading week of 2025.

I do want to zoom in on Oracle.

So today we are looking at that name up by 7%.

So tell us what's going on and what this means, especially on the heels of the TikTok deal.

Well, I think quite frankly with Oracle it's been beaten up so much over the last few weeks, so it's always been expected to have a little bit of a bounce here, correction back to the upside.

But I'm not a big fan of Oracle, and it's not the future to me.

Oracle doesn't seem to be having its game plan in place, shall we say.

So I'm a little bit concerned about Oracle.

The bounce is great, but I'm, I'm not positive on the future of Oracle.

Yeah, and as we wrap up 2025, we know artificial intelligence has been a key investment theme this year.

So tell us why not Oracle and what you actually are bullish about.

Well, the one that I am very bullish about is Broadcom ABGO.

I think it's also been beaten up, and I think the chipsets there are really good and I think you're going to see some collaborations that we haven't seen in the past.

Now which ones they are right now, I'll keep that to myself for a little bit, but I I'll tell you that I do see Broadcom as the big winner here in 2026.

And why Broadcom?

Well, I think that the chipset already has the ability to manufacture it quicker, and I think that's what the president's been asking, right, to go back to a manufacturing country and Broadcom is one of those countries that companies that can do that.

And so I really like Broadcom.

I really like it on this on this dip here.

So I'm really, I'm really I've been buying the last week now.

And of course when we take a step back and look at the S&P 500 double digit percentage gains this year and we're looking at communication services, IT, and industrials leading the way higher, but give us your take on what we can expect heading into 2026 and why we've had a rotation right out of AI and tech stocks into the industrial, which was a good thing.

We need to have a more broader rally going into this.

And we've had some tech selling as well and we've had some AI selling that got a little bit overt skis, but going into 2026 and 2027, I think it's quantum computing that's going to be on the forefront.

We're talking about that with Bitcoin, right?

I think quantum computing is going to be hot, and the one that I really like here is IBM.

I think Big Blue's got ready to go with Nighthawk and J Bird and Starlink.

They've got some pretty cool products coming up that I really like here.

Yes, so can you expand on this because when we think of IBM we might not be focused on that as a key play when it comes to AI, but quantum computing here, so why Big Blue?

Well, the very same reason, right, they're already in the game already and they already have the manufacturing processes.

They already have the people in place.

They're kind of a quieter move on.

And I think that's what people are looking for is where's the move where I can find something that's not a hot stock, right?

Moving up 20% down 20% the next day, right?

Looking for something a little more steadier.

But I'll also say that Big Blue, the reason they have been in the game since the beginning of AI.

They were the forefront of all of this, and they know where the future is.

So and the hardware side of this, they've already been prepared for this.

And one headline that's been breaking this morning is Palo Alto Networks announcing a multibillion dollar deal with Google Cloud.

We're looking at shares of Google as well as Palo Alto up by 0.5% point.

So what do you make of this?

Well, I think that's key, right?

Cloud is we have to have cloud computing right in order to make this happen.

But the one thing that I said that this year is going to happen and next year even bigger will be mergers and acquisitions.

So those at M&A, it's happened whether it's Netflix and Warner Brothers or in this case Google Cloud.

I think M&A is going to be very hot and in this case it has to be strategic and so in this case cloud and Palo Alto Networks is a very smart move for both companies.

So you mentioned M&A, but are there other factors that you expect given what we're seeing as we head into the new year?

Well, with lower inflation obviously and we're going to see consumer confidence turn around a little bit or we might not have that rally that we're expecting, but right now I I think we're going to have a Santa Claus rally.

I'm excited for it, right?

And that's a factor that I think makes people happy at the beginning of the year.

If they're making money, then everybody's happy and that's good.

Job losses are a concern, right?

If we see more job losses, then I'm a little concerned too, but I don't think so.

I think we'll have a very steady January and February, and then by March as the thaw happens, I think you'll see a market pushing higher.

And speaking of markets pushing higher and that rotation that you mentioned earlier, there's some lofty price targets when.

Comes to the S&P 500 for 2026 by the end of next year.

So where do you stand when it comes to the S&P 500?

And I know we talked about rotation, but what are you zooming in on 7500?

I think I've been pretty bullish on this for next year, and I think you're going to see a lot.

I think the president's agenda right now is very strong when it comes to the economy.

I think he's going to push for more lower rates, especially with the Fed's.

Accommodated to him, so lower rates should push the markets up, especially in small caps.

And finally, before I let you go, since you mentioned quantum computing, what are some key names you're paying attention to right now and tell us why?

I think Cubitts is a good one.

I think it's one that's going to be very popular and hot in the future too as well.

They have to continue to, I would say, make it happen.

They've got to actually produce, but I think they're going to, and I like cubits here and there has been this talk about this AI bubble.

Does it really?

Exist or no?

Yes, and we're going to have several bubbles in the future too.

I mean it's expected, right?

We're going to have just like the internet.

It pops and bursts and explode expansions.

So I'm not too concerned about it.

What I am concerned about is when you look at quantum computing, who's going to be the leader in quantum computing, and I want a real leader like IBM.

Well, great having you on the show.

We'll see what plays out in the new year.

Hopefully we'll have you back as we kick off 2026.

Thank you so much.

Thanks for having me.

U.S. markets moved closer to record highs as easing inflation data revived investor confidence. A lower-than-expected CPI report fueled expectations for interest rate cuts and potential fiscal support, setting the stage for renewed momentum in technology stocks. Against this backdrop, Steven Orr, known as “BigBeat” and founder and CEO of Quasar Markets, outlined why quantum computing drives tech stocks heading into 2026.

Orr noted that the recent market rally reflects optimism around slowing price pressures, but he cautioned that not all technology names are positioned equally. Oracle shares rebounded roughly 7%, yet Orr expressed skepticism about the company’s long-term outlook. He argued that Oracle has struggled to fully align with emerging technology trends that are shaping the next investment cycle.

Instead, Orr highlighted Broadcom as a stronger opportunity. He pointed to Broadcom’s advanced chipset capabilities and its role in enabling next-generation computing infrastructure. Manufacturing strength within the United States, he said, will be a defining advantage as demand for specialized hardware continues to grow.

The discussion also underscored a broader transition within the technology sector. Artificial intelligence dominated investment themes throughout 2025, but Orr believes the next major inflection point is already forming. He expects quantum computing to become a primary driver of capital allocation in the years ahead, reinforcing why quantum computing drives tech stocks across multiple subsectors.

IBM emerged as a key beneficiary in this shift. Orr emphasized IBM’s decades-long investment in advanced computing, AI, and enterprise infrastructure. With quantum initiatives such as Nighthawk and a deep foundation in hardware development, IBM is positioned to lead as quantum applications move closer to commercial viability.

Orr also addressed the growing importance of cloud computing in shaping the technology landscape. He cited the multi-billion-dollar partnership between Palo Alto Networks and Google Cloud as a signal that mergers, acquisitions, and strategic alliances will accelerate. These deals are expected to strengthen security, scale cloud services, and unlock operational efficiencies.

Looking ahead, Orr suggested that improving consumer confidence and falling inflation could support a seasonal rally into early 2026. Expectations for a year-end market lift remain intact, with technology and small-cap stocks seen as potential outperformers if economic conditions stabilize.

Still, Orr acknowledged risks on the horizon. Job losses and labor market weakness remain areas to watch closely. Even so, he maintained a constructive outlook, arguing that innovation-led sectors tend to perform well once monetary conditions begin to ease.

As markets prepare for 2026, Orr’s analysis reinforces a central theme. Quantum computing drives tech stocks by reshaping hardware demand, cloud infrastructure, and long-term investment strategies. Companies with deep technical expertise and scalable platforms appear best positioned to benefit as the next wave of technological transformation unfolds.

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