As with any investment, your capital is at risk.
Imagine a world powered by bottled stars, computers that think in terms of quantum spins, and rockets that land themselves.
These are the technologies that investment manager Luke Ward believes will be among the most significant of the coming decade, reshaping industries and challenging incumbents.
At a recent investment forum, he outlined three “new forms of hardware” that he sees pushing the boundaries of what is possible: fusion energy, quantum computing and space technology.
Ward set out three stages of innovation. First, proving that something is scientifically possible; then, making it practical in engineering terms, and finally, scaling it to be sold at a profit in large volumes.
The investor’s challenge is timing, backing the companies that can succeed in turning advanced science into products and profits.
Fusion energy: investing in a pathway
Instead of burning fuel chemically to generate energy, fusion fuses atoms in a nuclear reaction. If it can be engineered at scale, it could deliver clean, abundant power.
The hurdle is cost and complexity. Ward argued fusion machines need to become “a thousand times better” to produce net electricity and then deliver “a 10 million times increase in economic performance” to be commercially compelling.
While he believes it’s “inevitable that we’re going to power our civilisation via fusion one day,” he accepts we can’t predict when. In the meantime, he is searching for businesses that create value now while improving fusion capabilities for the future.
His example was Shine Technologies, a private company backed by Baillie Gifford. Shine uses fusion to generate neutrons for current applications, including advanced medical testing and imaging of carbon-fibre composites.
That near-term business funds a roadmap to medical isotopes used in cancer diagnosis and treatments. Further out, it could lead to the recycling of nuclear waste.
“Each of these is independently a huge growth business,” Ward said. “But the point is… we’re invested in fusion in a tangential way where fusion energy is the option at the end rather than the core investment case.”
Quantum computing: a better calculator for the most complex problems
Ward framed quantum computing as: “a better calculator than what we have today… that allows us to do better versions of simulations.”
That matters because some problems are too complex to model well with conventional computers. He pointed to drug discovery, which is still an expensive trial-and-error process. More accurate simulation could improve the odds of finding promising compounds and cut the time and cost of bringing new medicines to market.
However, he argued that any business built on the idea that no one can “come up with a better molecule or a better equation or a better form of modelling” is “ripe for disruption” and being overtaken if quantum unlocks “exponential compute” for complex problems.
Quantum machines use qubits rather than bits (ones and zeros). Ward likened a qubit to “a spinning coin,” able to represent multiple possibilities at once. The challenge is transforming lab demonstrations into reliable systems that can be manufactured at scale.
Ward suggested one avenue might be investing in firms that take proven industrial processes and “apply them to quantum.”
He singled out PsiQuantum, which uses particles of light (photons) as qubits and aims to build through advanced semiconductor chip factories. Ward noted this will enable quantum computing to be practicable by the early 2030s.
Space: when “a rocket landing” changes launch costs
Ward reminded the audience how quickly connectivity drops outside cities. “If we did have global connectivity, we’d be able to update every single piece of hardware wherever it was in the world,” he said, noting John Deere is integrating satellite communications into tractors and farm equipment.
Ward’s key point was economics: satellite connectivity becomes far more scalable when rockets are reusable. He suggested SpaceX, having already launched more than 10,000 satellites as of October 2025, could become “the world’s first global utility company.”
The company has already demonstrated its ability to bring the booster back to the launch site, but with its latest rocket, Starship, the aim is to return the entire rocket to the launch stand, refuel it and relaunch it.
He contrasted that with the installation of the International Space Station, which he described as “probably the most expensive piece of real estate which we’ve ever built.”
Ward argued that, in principle, it would take Starship approximately five launches to put the same mass and volume into orbit, and that this could, in theory, be achieved within a few days.
When is the right time to invest in innovation?
Ward mapped the technologies to the three stages of innovation: fusion is still early, quantum is in the engineering phase, and space “has become a true commercial innovation.”
He suggested breakthroughs can reinforce each other. Better quantum simulation, for example, could accelerate fusion engineering.
His broader message was that the companies that are the early leaders in this next hardware wave can “pull up a ladder behind them” by pioneering high-value use cases, while also “dropping a ladder down… to make other kinds of innovation possible.”
While the timelines remain uncertain, the common thread is that when hardware breakthroughs become inexpensive and repeatable, they will enable whole new business models to emerge, making this an exciting time for investors.
Risk Factors
The views expressed should not be considered as advice or a recommendation to buy, sell or hold a particular investment. They reflect opinion and should not be taken as statements of fact nor should any reliance be placed on them when making investment decisions.
This communication was produced and approved in January 2026 and has not been updated subsequently. It represents views held at the time of writing and may not reflect current thinking.
This communication contains information on investments which does not constitute independent research. Accordingly, it is not subject to the protections afforded to independent research, but is classified as advertising under Art 68 of the Financial Services Act (‘FinSA’) and Baillie Gifford and its staff may have dealt in the investments concerned.
All information is sourced from Baillie Gifford & Co and is current unless otherwise stated.
The images used in this communication are for illustrative purposes only.
