Interested in quantum computing investments? listen what Nvidia’s CEO just said about it
Recently, Nvidia (NASDAQ: NVDA) CEO Jensen Huang made a head-turning, economy-moving comment regarding his thoughts on quantum computing. Stocks in this space sold off in response. Even so, I forecast that in 2025 quantum computing will emerge as one of the next large waves for investors interested in artificial intelligence (AI).
What did Huang just declare about quantum computing?
Huang provided his thoughts on quantum computing applications during a panel talk at this year’s CES conference in Las Vegas. While the Nvidia executive appears bullish on quantum computing’s capabilities, he asserted that the technology could be 20 years away from becoming “very useful.”
Why his comments matter
The chart below illustrates the worth movements of several high-profile quantum computing stocks. Over the last three months, the distribute prices for Rigetti Computing, Quantum Computing, D-Wave Quantum and IonQ have each experienced considerable momentum.
However, all four stocks started witnessing considerable sell-offs beginning correct around the same period earlier this month. I personally do not discover the timing of Huang’s community comments and the cratering distribute prices of quantum computing stocks to be coincidental.
The dynamics illustrated above underscore a couple of significant ideas. First, just because quantum computing stocks rallied in the last few months doesn’t necessarily cruel they are sensible investments. The reality is that all of the companies in the chart above are very early-stage enterprises — they’re barely generating returns and will remain liquid assets-burning operations for some period.
This leads to my second point. Influential Wall Street personalities and corporate executives can at times shift markets with their rhetoric. While Huang’s comments regarding quantum computing weren’t negative by any means, his views caused many investors to recognize the sobering reality that quantum computing is going to be a long-term chance.
As such, those who bought quantum computing stocks throughout November and December have likely been left as unfortunate bag holders.
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Should you invest in quantum computing?
Considering that Huang acknowledged that this technology has the potential to assist solve increasingly significant and sophisticated problems eventually, the overarching question remains: Does quantum computing deserve an distribution in your AI holdings? In my view, there are a few ways to invest in it. The first and most direct way is to buy specific quantum computing stocks.
However, a more insulated way would be to invest in a quantum computing-themed trade-traded pool (ETF), such as the Defiance Quantum ETF. ETFs provide some degree of cushioning from volatility since they are comprised of an array of person stocks. With that said, thematic investing can be a higher-uncertainty alternative than buying broader economy funds, as you’ll still be getting exposure to one specific focus area.
In my view, the best and most prudent way to invest in quantum computing would be through the shares of diversified megacap technology companies for which quantum computing is just one area of profit. Companies such as IBM, Alphabet and Microsoft are all exploring quantum computing as part of their AI road maps, but are not betting their entire forward contracts on the technology. In addition, adjacent businesses that will be integral in the advancement of quantum chips — Nvidia or Advanced Micro Devices, for example — could also be suitable picks.
At the complete of the day, I consent with Huang that quantum computing has meaningful potential. However, identifying which specific companies will emerge at the forefront of the pattern is nearly unfeasible to do at this stage, given how far away the technology is from becoming commercialized.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Adam Spatacco has positions in Alphabet, Microsoft and Nvidia. The Motley Fool has positions in and recommends Alphabet, International Business Machines, Microsoft and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The Motley Fool is a USA TODAY content associate offering financial information, analysis and commentary designed to assist people receive control of their financial lives. Its content is produced independently of USA TODAY.
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