Last year, investors rushed into artificial intelligence (AI) stocks and the biggest companies like Nvidia. (NVDA 3.10%) On to Amazon — helped the general market soar. The S&P 500, Dow Jones Industrial Average, and Nasdaq each rose by double digits. This technology has sparked such excitement because it has the potential to revolutionize many industries.
As this AI boom has gained momentum, so has another hot technology. I’m talking about the related field of quantum computing. In AI, large-scale language models (LLMs) learn everything humans know to help humans 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 highly complementary. That’s why investors paid particular attention to recent words from Nvidia CEO Jensen Huang.
At CES earlier this month, Huang said a practical quantum computer was about 20 years away, disappointing investors who had hoped for a short-term opportunity. Quantum player’s stock plummets in Righetti Computing (RGTI -12.54%) and quantum computing (QUBT -9.65%) I lost 45% and 43% respectively in one trading session.
Still, these two players have each soared more than 1,000% over the past year. While Huang’s words and subsequent stock performance will be remembered, there is some encouraging news for those investing in quantum computing stocks today. Let’s check it out.
Image source: Getty Images.
What quantum companies are doing now
So first, let’s take a look back at what quantum companies are doing now and what Jensen Huang said recently. As mentioned earlier, this type of computing relies on quantum mechanics, the science that deals with the behavior of matter. Rather than using bits to process data like regular computers, quantum computers use qubits to process more data.
Quantum computers process information differently than classical computers, giving them incredible speeds. A quantum computer might take a few minutes to solve a particular problem, whereas a classical computer would take thousands of years.
Rigetti, developer of the first multichip quantum processor for scalable systems, has been selling quantum computers since 2023. Most recently, the company launched the 84-qubit Ankaa-3 system, a platform that has reached a key accuracy milestone. The system includes a new hardware design and improved qubit chips.
Quantum Computing provides customers with enterprise software for quantum computing and high-performance quantum systems. The company’s long-term projects include expanding the use of a crystalline material called lithium niobate in the design and manufacturing of photonic integrated circuits used in quantum computing products, and it currently has manufacturing facilities for this purpose. is under construction.
Neither Righetti nor Quantum are profitable yet. This is the prevailing situation today, as companies specifically focused on quantum computing remain focused on research and development of these new systems.
“A very useful quantum computer”
This brings me back to the comments that hit quantum companies hard earlier this month. Nvidia CEO Huang said “very useful quantum computers” will likely be available within 20 years.
Investors took this as a disappointment, but there was some encouraging news. Quantum computing is advancing. That means these companies are likely to report achievements and milestones in the coming months and years, which could be a catalyst for a rally in quantum computing stocks.
Certain positive catalysts may also be just around the corner. Microsoft has announced that 2025 is the year businesses become “quantum ready” and launched a new Quantum Ready program to help businesses do just that. The company plans to provide customers with tools to get them on the right path, build quantum skills, access quantum computers, and more.
Nvidia’s first Quantum Day
And in a move that shows its belief in this potentially game-changing technology, Nvidia announced the first-ever Quantum Day on March 20th. It will be part of Nvidia’s annual AI conference, the GPU Technology Conference (GTC). Featuring many experts in the field, Quantum Day covers what’s happening with quantum computing today and what’s coming next. Special addresses will focus on research that has the potential to shorten the timeline to commercialization.
All of this means that while it may be years before quantum computing companies generate potentially significant revenue and profits, news of progress could drive stock prices higher in the coming months and years. That means there is. And that’s good news for investors looking to hold these stocks for the long term.
John Mackey, former CEO of Amazon subsidiary Whole Foods Market, is a member of the Motley Fool’s board of directors. Adria Cimino has a position at Amazon. The Motley Fool has positions in and recommends Amazon, Microsoft, and Nvidia. The Motley Fool recommends the following options: A long January 2026 $395 call on Microsoft and a short January 2026 $405 call on Microsoft. The Motley Fool has a disclosure policy.
