Is Jensen Huang’s Caution a Buying Chance for Quantum Stocks?
Editor’s note: This article titled “Quantum Jackpot: Latest Selloff Unlocks a Fantastic Opportunity” was originally published in January 2025 and is updated to reflect current information.
In late 2024, quantum computing stocks created a buzz on Wall Street. Companies like IonQ (IONQ), Quantum Computing (QUBT), D-Wave Quantum (QBTS), and Rigetti Computing (RGTI) saw their stock prices soar by hundreds of percent within just a few months.
However, earlier this week, when Nvidia (NVDA) CEO Jensen Huang stated that practical quantum computers are approximately 15 years away, the stock rally hit a steep decline. Many related stocks plummeted by over 40% in just one day.
So, did Huang signal the end of the quantum stock bull run, or did he provide savvy investors with a prime buying opportunity?
The latter seems more likely.
Quantum computing could represent a major technological leap—potentially as significant as the discovery of fire or the wheel. This presents a unique investment chance.
To grasp this potential, it is essential to understand how quantum technology works.
Understanding Quantum Computing
The physics behind this revolutionary technology—quantum mechanics—is complex, and fully grasping it would take more than 500 pages. So, let’s distill it down into a brief summary.
For centuries, scientists have honed the laws of physics that govern our everyday world, known as classical mechanics. These principles explain how things work and why they happen.
However, everything changed in 1897 with J.J. Thomson’s discovery of the electron, which opened the door to a subatomic world that defies classical mechanics. This new realm follows its own unique set of rules, termed quantum mechanics.
Quantum mechanics diverges from classical mechanics in two remarkable and almost magical ways.
First, classical mechanics dictates that objects occupy one position at a time—you cannot be at two places simultaneously.
Conversely, in quantum mechanics, subatomic particles can theoretically exist in several places at once until observed. A single particle may be in both point A and point B simultaneously until it is measured, at which point it takes a definite position at either point A or point B.
Thus, the true “location” of a subatomic particle is a combination of all its possible states.
This phenomenon is known as quantum superposition.
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The Quantum Computing Revolution: A Shift Beyond Classical Limits
Understanding Quantum Entanglement
To start, classical mechanics teaches us that objects interact only with what is tangible. For instance, you wouldn’t ask an imaginary friend to help move furniture; you need someone real.
In contrast, the location of a subatomic particle isn’t fixed; instead, it’s defined by a combination of all probabilistic states, which are entangled. This means that knowledge about one particle’s position provides insights into the position of another. The interconnectedness allows these probabilistic states to collaboratively form a complex ecosystem.
This phenomenon is known as quantum entanglement.
Thanks to both entanglement and superposition, subatomic particles can exist in multiple states simultaneously, enabling them to work together to complete tasks effectively.
It’s fascinating, isn’t it?
This concept challenges everything we learned from classical mechanics. It seems counterintuitive, yet it’s a reality. Today, we are beginning to harness this phenomenon, promising transformative changes in technology.
Some experts believe quantum computing could be as groundbreaking for humanity as the discovery of fire or the invention of the wheel.
And I share this sentiment.
Quantum mechanics is poised to reshape our understanding of the universe in the coming years, and early investors might reap substantial rewards.
The Power of Quantum Computing
Over the last century, quantum theory has advanced significantly, especially in the past decade.
Researchers from top laboratories and tech companies are now unlocking the extraordinary capabilities of quantum mechanics to develop a new generation of super quantum computers that far exceed the capabilities of today’s fastest supercomputers.
Haim Israel, Bank of America’s head of Thematic Research, states:
“By the end of this decade, the amount of calculations that we can make [on a quantum computer] will exceed the number of atoms in the visible universe.”
Though the principles behind quantum computing are intricate, here’s a simpler summary.
Current computers rely on classical mechanics, storing data as bits that represent either “1” or “0.”
Imagine replacing these classical bits with quantum bits – qubits – which can represent both “1” and “0” simultaneously due to superposition.
If we utilize entanglement, multiple qubits can collaborate on difficult computations simultaneously.
With such a machine, the computational capabilities could overwhelm today’s most advanced supercomputers.
This is precisely what is happening now.
Exploring Quantum Computing’s Limitless Potential
Recently, Google introduced its latest quantum processor, Willow.
At the launch, Google shared that Willow completed a complex calculation, one that would take its fastest classical supercomputer approximately 10 septillion years, in just five minutes.
To put this in perspective, ten septillion years (10,000,000,000,000,000,000,000,000) reduced to five minutes illustrates the remarkable potential of quantum computing.
This is the real strength of quantum technology.
Imagine if we could resolve global challenges at such speed.
We might achieve the level of AI depicted in films. Currently, AI development faces limitations due to the performance of machine learning algorithms, which depend on supercomputing power. Enhancing that capacity can lead to vastly superior machine learning and smarter AI.
We could also eliminate diseases. While we currently have gene-editing technology, its efficiency is still tied to conventional computing. Quantum computing could enable precise gene manipulation instantaneously.
What about a million-mile electric vehicle? Battery improvements rely on testing, which is constrained by real-world conditions. Quantum simulations could accelerate this process, making innovative battery designs feasible.
The possibilities of such advancing computing power are boundless.
Hence, the economic potential in this field is immense.
Conclusion: The Time to Invest is Now
I firmly believe quantum computing is one of the most underrated and transformative breakthroughs since the internet.
It may even surpass the internet’s impact.
Admittedly, this transition will take time; the Quantum Revolution will unfold in stages over several years and decades.
However, it is crucial to act now to invest.
Reflect on the Internet Revolution, which unfolded over 30 years from 1995 to 2025, during which leading internet stocks experienced tremendous growth.
For instance, since 1995, Oracle (ORCL) has seen stock prices soar by about 7,500%. Microsoft (MSFT) has increased over 11,000%, while Apple (AAPL) has surged nearly 70,000%.
To maximize returns from significant tech advancements, early investments are vital.
That is our focus with quantum computing stocks. Adopting a long-term perspective and investing in these transformative changes is essential.
We believe quantum computing will greatly influence AI, facilitating better artificial intelligence. Hence, one promising route to engage with the Quantum Revolution is through AI stock investments.
To discover top AI stocks for the upcoming year, we’ll look to the insights from Elon Musk and his AI initiative.
Stay tuned for xAI to prepare for the potential gains ahead.
On the date of publication, Luke Lango did not have (either directly or indirectly) any positions in the securities mentioned in this article.
P.S. Follow Luke’s latest market analysis through our Daily Notes! Explore the latest issue on your Innovation Investor or Early Stage Investor subscriber site.
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