Nvidia CEO’s Quantum Computing Insight Shakes Market
In a recent panel discussion at CES in Las Vegas, Nvidia (NASDAQ: NVDA) CEO Jensen Huang shared his thoughts on quantum computing. His comment that the technology could be 20 years away from being “very useful” caused a sell-off in related stocks. Nonetheless, I believe quantum computing will become a significant investment opportunity by 2025, particularly in the field of artificial intelligence (AI).
Huang’s Remarks on Quantum Computing
During the CES conference, Huang expressed optimism about the future capabilities of quantum computing. However, he cautioned that the tech is still in its infancy and could take two decades to mature effectively.
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Implications of Huang’s Statements
The price movements of key quantum computing stocks like Rigetti Computing, Quantum Computing, D-Wave Quantum, and IonQ have been noteworthy. Over the past three months, these stocks have seen significant fluctuations.
RGTI data by YCharts.
Unexpected drops in these stocks started around the same time as Huang’s comments. The correlation isn’t just coincidence; it illustrates how influential figures can impact market dynamics.
Despite recent rallies, these companies are in the early stages of revenue generation and are expected to remain non-profitable for the foreseeable future. Huang’s remarks have made many investors realize that quantum computing represents a long-term investment opportunity rather than an immediate profit avenue.
Should Quantum Computing Be Part of Your Investment Strategy?
Given Huang’s acknowledgment of quantum computing’s future potential, the critical question becomes whether it should feature in your AI portfolio. One direct method is to invest in specific stocks focused on quantum technology.
Alternatively, consider a quantum computing-themed exchange-traded fund (ETF) such as the Defiance Quantum ETF. ETFs can provide a buffer against market volatility, as they include various individual stocks. However, investing in thematic ETFs often carries a higher risk compared to broader market funds, due to their specific focus.
My recommendation leans toward investing in well-established technology giants like IBM, Alphabet, and Microsoft. These corporations view quantum computing as one aspect of their broader AI strategies, which allows for a diversified investment opportunity. Companies like Nvidia and Advanced Micro Devices that are developing quantum chips may also merit consideration.
In conclusion, while I share Huang’s optimistic view on the future of quantum computing, predicting which companies will succeed in this space is currently challenging, given the technology’s long path to commercialization.
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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 views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
