Last 12 months, investors poured into artificial intelligence (AI) stocks, and the largest players — from Nvidia (NASDAQ: NVDA) to Amazon — helped the final market soar. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq each climbed within the double digits. The technology spurred such excitement since it has the potential to revolutionize many industries.
As this AI boom gained momentum, one other hot technology was picking up speed. I’m talking in regards to the related area of quantum computing. In AI, large language models (LLM) train to learn all that humans know in order that they’ll then go on to resolve problems that involve reasoning.
Quantum computing harnesses the principles of quantum mechanics to resolve problems that classical computers cannot handle. These technologies will be very complementary — and that is why investors paid particular attention to recent words from Nvidia Chief Jensen Huang.
During CES earlier this month, Huang said useful quantum computers are about 20 years away, disappointing investors hoping for a nearer-term opportunity. Shares of quantum players plummeted, with Rigetti Computing(NASDAQ: RGTI) and Quantum Computing(NASDAQ: QUBT) losing 45% and 43%, respectively, in a single trading session.
Still, these two players each soared greater than 1,000% over the past 12 months. While Huang’s words and the following share performance won’t be forgotten, there may be some reassuring news for anyone invested in quantum computing stocks today. Let’s test it out.
Image source: Getty Images.
So, first, let’s back up and consider what quantum corporations are doing today and what Jensen Huang said recently. As mentioned, this sort of computing relies on quantum mechanics — the science that deals with the behavior of matter. As a substitute of using bits to process data, as extraordinary computers do, quantum computers process way more data using qubits.
Quantum computers handle information in a different way from classical ones, which may end up in tremendous speed. A quantum computer may take minutes to resolve a selected problem, while a classical computer would require hundreds of years.
Rigetti, developer of the primary multichip quantum processor for scalable systems, has been selling its quantum computers since 2023. Only in the near past, the corporate launched its 84-qubit Ankaa-3 system, a platform that reached a key accuracy milestone. The system features a recent hardware design and an improved qubit chip.
Quantum Computing offers customers enterprise software for quantum computing and high-performance quantum systems. The corporate’s long-term project involves scaling up the usage of a crystalline material called lithium niobate within the design and production of optical integrated circuits used for quantum computing products — and it’s constructing out a producing facility for this purpose straight away.
Neither Rigetti nor Quantum are profitable yet. This is usually the situation for corporations focused specifically on quantum computing straight away, as they’re still so heavily focused on the research and development of those new-ish systems.
This brings me to the comments that hit quantum corporations hard earlier this month. Nvidia CEO Huang said that “very useful quantum computers” would probably be available in about 20 years.
Though investors saw this as disappointing, there may be some reassuring news. Quantum computing is progressing, meaning these corporations will likely report accomplishments and milestones within the months and years to come back — and these represent catalysts for quantum computer stocks to climb.
Certain positive catalysts could also be right across the corner, too. Microsoft announced that 2025 is the 12 months for corporations to change into “quantum ready” and launched a recent Quantum Ready program to assist businesses do exactly that. The corporate will offer customers tools to set them on the precise path, construct their quantum skills, access quantum computers, and more.
And Nvidia, in a move signaling its belief on this potentially game-changing technology, announced its first-ever Quantum Day on March 20. It can be a part of the GPU Technology Conference (GTC), Nvidia’s annual AI conference. Featuring many experts in the sphere, Quantum Day will cover what’s happening in quantum computing today and what may lie ahead. A special address will highlight work which will shorten the timeline to usefulness.
All which means despite the fact that it might take years for quantum computing corporations to potentially generate major revenue and profits, their shares could still climb on news of advancements within the months and years ahead. And that is great news for investors who aim to carry on to those stocks for the long run.
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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Idiot’s board of directors. Adria Cimino has positions in Amazon. The Motley Idiot has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Idiot recommends the next options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Idiot has a disclosure policy.