Last year, investors poured into artificial intelligence (AI) stocks, and the biggest players — from nvidia (NASDAQ: NVDA ) to Amazon – Helped the general market grow. The S&P 500The Dow Jones Industrial AverageAnd Nasdaq Each climbed into double digits. The technology spurred such enthusiasm because of its potential to revolutionize many industries.
As this AI boom gained momentum, another hot technology was gaining momentum. I am talking about the related field of quantum computing. In AI, Large Language Model (LLM) Train to learn all that humans know so that they can then proceed to solve problems that involve logic.
Quantum computing uses the principles of quantum mechanics to solve problems that classical computers cannot handle. These technologies can be very complementary — and that’s why investors have paid particular attention to recent words from Nvidia chief Jensen Huang.
During CES earlier this month, Huang said that useful quantum computers are about 20 years away, disappointing investors hoping for a near-term opportunity. Shares of Quantum Players fell, too Righetti Computing(NASDAQ: RGTI ) And Quantum computing(NASDAQ: QUBT ) In one trading session, losing 45% and 43% respectively.
Still, both of these players have grown more than 1,000% in the past year. While Huang’s words and subsequent share performance will not be forgotten, there is some reassuring news for anyone investing. Quantum Computing Stock Let’s check it out today.
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So, first, let’s back up and consider what quantum companies are doing today and what Jensen Huang said recently. As mentioned, this type of computing relies on quantum mechanics – the science that deals with the behavior of matter. Instead of using bits to process data, as normal computers do, quantum computers process much more data using qubits.
Quantum computers handle information differently than classical ones, which can result in much higher speeds. A quantum computer can take minutes to solve a particular problem, while a classical computer needs thousands of years.
Righetti, the developer of the first multichip quantum processor for scalable systems, is selling its quantum computers from 2023. Recently, the company launched its 84-qubit Anka-3 system, a platform that has reached a major precision milestone. The system features a new hardware design and an improved qubit chip.
Quantum Computing offers customers quantum computing and enterprise software for 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 used for quantum computing products — and it is currently building a manufacturing facility for the purpose.
Neither Righetti nor Quantum are profitable yet. This is usually the case for companies focused exclusively on quantum computing at the moment, as they are still very much focused on the research and development of these new systems.
This brings me to the comments that hit quantum companies hard earlier this month. Nvidia CEO Huang said that “very useful quantum computers” will probably be available in about 20 years.
While investors may find this disappointing, there is some reassuring news. Quantum computing is making progress, meaning these companies will likely report achievements and milestones in the coming months and years — and that represents a catalyst for quantum computer stocks to climb.
Some positive catalysts may also be around the corner. Microsoft announced that 2025 is the year for companies to become “quantum ready” and launched a new Quantum Ready program to help businesses do just that. The company will offer tools to set customers on the right path, build their quantum skills, access quantum computers and more.
And Nvidia, signaling its belief in this potentially game-changing technology, announced its first Quantum Day on March 20. It will be part of the GPU Technology Conference (GTC), Nvidia’s annual AI conference. Featuring many experts in the field, Quantum Day will cover what is happening in quantum computing today and what may be next. A special address will highlight work that can shorten the timeline for utility.
All of this means that even though quantum computing companies may take years to generate potentially large revenues and profits, their shares could still climb on news of progress in the months and years ahead. And this is great news for investors who aim to hold these stocks for the long term.
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