Investors have piled into artificial intelligence (AI) stocks over the last year, with the biggest players coming from NVIDIA (NASDAQ: NVDA) arrive Amazon — helping the overall market soar. this S&P 500 Indexthis Dow Jones Industrial Average,as well as Nasdaq Both climbed by double digits. What makes this technology exciting is its potential to revolutionize many industries.
As the artificial intelligence craze grows, another hot technology is also accelerating. I'm talking about the related fields of quantum computing. In artificial intelligence, large language models (LLMs) are trained to learn everything humans know so that they can go on to solve problems involving reasoning.
Quantum computing uses the principles of quantum mechanics to solve problems that classical computers cannot handle. These technologies can be very complementary - which is why investors are paying particular attention to Nvidia CEO Jensen Huang's recent comments.
During CES earlier this month, Huang said useful quantum computers were about 20 years away, disappointing investors hoping for a near-term opportunity. Shares of quantum players plummet give up calculation (NASDAQ: RGTI) and Quantum computing (NASDAQ: QUBT) They fell 45% and 43% respectively in one trading day.
Still, both players have soared over 1,000% each over the past year. While Huang's words and subsequent stock price performance will not be forgotten, there is some reassuring news for anyone investing in quantum computing stocks today. Let's take a look.
So, first, let's review what Quantum is doing today and what Jensen Huang has been saying recently. As mentioned earlier, this type of calculation relies on quantum mechanics—the science that deals with the behavior of matter. Rather than using bits to process data like a regular computer, a quantum computer uses qubits to process more data.
Quantum computers process information differently than conventional computers, which can lead to tremendous speeds. A quantum computer might take minutes to solve a particular problem, whereas a classical computer would take thousands of years.
Rigetti, developer of the first multi-chip quantum processor for scalable systems, has been selling its quantum computers since 2023. Just recently, the company launched its 84-qubit Ankaa-3 system, with the platform reaching a key accuracy milestone. The system includes new hardware designs and improved qubit chips.
Quantum Computing provides customers with enterprise software for quantum computing and high-performance quantum systems. The company's long-term project involves expanding the use of a crystalline material called lithium niobate in the design and production of optical integrated circuits for use in quantum computing products, and it is currently building a manufacturing facility for this purpose.
Neither Rigetti nor Quantum is profitable yet. This is often the case for companies currently focusing exclusively on quantum computing, as they remain very focused on the research and development of these new systems.
Which brings me to comments that hit Quantum hard earlier this month. Nvidia CEO Jensen Huang said "very useful quantum computers" could be available in about 20 years.
While investors were disappointed, there was some reassuring news. Quantum computing is making progress, which means these companies are likely to report achievements and milestones in the coming months and years, which are catalysts for quantum computer stocks.
Some positive catalysts may also be on the horizon. Microsoft Declared 2025 as the year of enterprise “quantum readiness” and launched a new quantum readiness program to help enterprises achieve this goal. The company will provide customers with tools to help them get on the right path, develop their quantum skills, access quantum computers and more.
Nvidia announced it will host its first Quantum Day on March 20, a move that demonstrates its confidence in this potentially game-changing technology. This will be part of the GPU Technology Conference (GTC), Nvidia's annual artificial intelligence conference. Quantum Day will feature many experts in the field, covering what is currently happening in quantum computing and what may happen in the future. Special presentations will highlight work that may reduce practical time.
All of which means that while it may take years for quantum computing companies to generate major revenue and profits, their stock prices could still climb on news of progress in the coming months and years. This is good news for investors who plan to hold these stocks for the long term.
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John Mackey is the former CEO of Amazon subsidiary Whole Foods Market and a board member of The Motley Fool. Adria Cimino works at Amazon. The Motley Fool owns and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: Long January 2026 Microsoft calls at $395 and short January 2026 Microsoft calls at $405. The Motley Fool has a disclosure policy.
Here’s some reassuring news for anyone investing in quantum computing stocks Originally published by The Motley Fool