Last year, investors poured into artificial intelligence (AI) stocks, and the biggest players — from Nvidia (NASDAQ: NVDA) to Amazon — helped the overall growth of the market. The S&P 500the Dow Jones Industrial Averageand Nasdaq each climbed to double digits. The technology has fueled such excitement because it has the potential to revolutionize many industries.
As this artificial intelligence boom gained momentum, another popular technology began to accelerate. I’m talking about the related field of quantum computing. In AI, large language models (LLM) train to learn everything people know so they can then go on to solve problems that involve reasoning.
Quantum computing uses the principles of quantum mechanics to solve problems that classical computers cannot handle. These technologies can be very complementary — and that’s why investors paid close attention to the recent words of Nvidia boss Jensen Huang.
During CES earlier this month, Huang said that useful quantum computers would be about 20 years away, disappointing investors hoping for a closer opportunity. Shares of quantum players plummeted, with Rigetti Computing(NASDAQ: RGTI) and Quantum computing(NASDAQ: QUBT) losing 45% and 43% respectively in one trading session.
However, these two players are up more than 1000% over the past year. While Huang’s words and the stock’s subsequent performance will not be forgotten, there is some reassuring news for anyone invested in quantum computing supplies today. Let’s go check it out.
Image source: Getty Images.
So first, let’s back up and consider what quantum companies are doing today and what Jensen Huang said recently. As mentioned, this type of computing relies on quantum mechanics — the science that deals with the behavior of matter. Instead of using bits to process data, as ordinary computers do, quantum computers process much more data using qubits.
Quantum computers process information differently than classical computers, which can result in tremendous speed. A quantum computer may take a few minutes to solve a particular problem, while a classical computer would take thousands of years.
Rigetti, the developer of the first multi-chip quantum processor for scalable systems, has been selling its quantum computers since 2023. The company recently launched its 84-qubit Ankaa-3 system, a platform that has reached a key accuracy milestone. The system includes a new hardware design and an improved qubit chip.
Quantum Computing offers customers business software for quantum computing and high-performance quantum systems. The company’s long-term project involves increasing the use of a crystalline material called lithium niobate in the design and manufacture of optical integrated circuits used for quantum computing products — and it is currently building a manufacturing facility for that purpose.
Neither Rigetti nor Quantum is profitable yet. This is generally the situation for companies currently focused on quantum computing, as they are still very focused on research and development of these new systems.
This brings me to the comments that hit quant companies hard earlier this month. Nvidia CEO Huang said that “very useful quantum computers” will probably be available in about 20 years.
While investors saw this as disappointing, there is some reassuring news. Quantum computing is advancing, which means these companies are likely to report achievements and milestones in the months and years to come — and they’re the catalysts for quantum computer stock growth.
Certain positive catalysts may also be just around the corner. Microsoft announced that 2025 is the year companies will become “quantum ready” and launched a new Quantum Ready program to help companies do just that. The company will offer tools to guide customers on the right path, build their quantum skills, access quantum computers and more.
And Nvidia, in a move that shows its faith in this potentially game-changing technology, has announced its first Quantum Day on March 20. It will be part of the GPU Technology Conference (GTC), Nvidia’s annual AI conference. With a number of experts in the field, Quantum Day will cover what is happening in quantum computing today and what could be in the future. A special address will highlight a job that can shorten the timeline to usefulness.
All of this means that while it could take years for quantum computing companies to potentially generate large revenues and profits, their shares could still rise on news of the progress in the months and years to come. And that’s great news for investors who intend to hold onto these stocks for the long term.
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