AmpliTech Group (NASDAQ:AMPG) shares were on a moon mission on Wednesday, skyrocketing 94%. The reason behind the jump has to do with a very buzzy trend – quantum computing.
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The leading-edge radio frequency (RF) components maker announced the successful launch of its proprietary low-noise cryogenic HEMT amplifiers. These advanced amplifiers enable quantum computers to function efficiently at ultra-low temperatures of 4 Kelvin (-452°F), essential for high-fidelity quantum operations.
The company also said that by delivering cryogenic low-noise amplifiers (LNAs) to two Fortune 50 leaders in quantum computing, as well as to universities and research institutions in this fast-growing field, it has “demonstrated its technological leadership.”
Recent times have seen a handful of quantum computing stocks go on some turbocharged runs so the news evidently chimed well with investors seeking exposure to the space.
AmpliTech recently secured two major multi-year agreements. In October, it entered a 5-year supplier agreement with Fujitsu for private 5G network products across the EMEA region, including ORAN radios, core servers, and other components.
And then last month, the company signed a 5-year basic order agreement (BOA) with a U.S.-based Fortune 1000 company worth nearly $1 million for its low-noise block down converters (LNBs) and engineering services, with the order to be fully recognized in the second half of next year.
Looking at the latter deal, Maxim analyst Jack Vander Aarde believes it has “potential for future expansion.” Vander Aarde also notes that AmpliTech is seeing strong momentum in its 5G-related product orders and multi-year agreements. The company’s pipeline remains robust, exceeding $100 million, although the analyst thinks conversion rates have been “slower than initially expected.” In the meantime, the new 5G product cycle has only just kicked off, with management anticipating 5G will make up 75%–80% of the company’s revenue next year.
Beyond 5G, Vander Aarde remains confident in AmpliTech’s leadership and the growing opportunities in cryogenics, quantum computing, and satellite communications (SATCOM), along with near-term prospects in private 5G networks and 4G/5G tower upgrades.
“We expect strong growth in 2025 and accelerated growth into 2026, driven by ramping purchase orders related to virtual 5G private networks and 4G/5G tower upgrades, a new LNB product portfolio, as well as growing demand from SATCOM and quantum computing verticals,” the analyst further said.
Ok, but is the stock still a Buy following Wednesday’s monumental climb? Absolutely, appears to be Vander Aarde’s take. He has a Buy rating on AMPG shares along with a $4 price target, implying the stock will gain another 107% over the next year. (To watch Vander Aarde’s track record, click here)
This name seems to be flying under Wall Street’s radar right now as Vander Aarde is the sole analyst covering it. (See AMPG stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
