We recently published a list of 11 Best Quantum Computing Stocks to Buy Right Now. In this article, we are going to take a look at where NVIDIA Corporation (NASDAQ:NVDA) stands against other best quantum computing stocks to buy right now.
Quantum computing continues to advance rapidly, which has been helping businesses get new opportunities related to security, AI, optimization, and scientific discovery. As per PwC, the increasing recognition of quantum computing’s potential to revolutionize numerous industries has placed the momentum for significant breakthroughs. For example, quantum simulations in healthcare enable scientists to model complex molecular interactions, which helps in ramping up the discovery of new drugs and materials.
Therefore, quantum has the potential to advance complex problem-solving, speed up the scientific discovery, and lead to the development of entirely new technologies. PwC believes that quantum possesses numerous implications for operational, R&D, and security and controls.
What Lies Ahead for Quantum Computing Industry?
As per Stellar Market Research, quantum computing use cases are expected to have a hybrid operating model, representing a blend of quantum and traditional high-performance computing until around 2032. For instance, a quantum-inspired algorithm can result in improvements in traditional high-performance computers. Fortune Business Insights believes that the quantum computing market growth is expected to be fueled by advanced problem-solving, AI advancements, and global investments.
Commonwealth Scientific and Industrial Research Organisation (CSIRO) mentioned that the United Nations has designated 2025 to be the International Year of Quantum Science and Technology. Over the upcoming years, quantum chips are expected to scale up. Furthermore, the next generation of quantum processors are expected to be supported by logical qubits. Through the use of quantum simulations on normal computers, the researchers continue to develop and test numerous quantum algorithms. When the quantum hardware catches up, this can make quantum computing ready for useful applications, says the firm.
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Our Methodology
To list the 11 Best Quantum Computing Stocks to Buy Right Now, we sifted through several online rankings to shortlist the companies catering to the broader quantum computing sector. Next, we chose the ones that are popular among the hedge funds. Finally, the stocks are ranked in ascending order of their hedge fund sentiments, as of Q4 2024.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A close-up of a colorful high-end graphics card being plugged in to a gaming computer.
NVIDIA Corporation (NASDAQ:NVDA)
Number of Hedge Fund Holders: 223
NVIDIA Corporation (NASDAQ:NVDA) developed cuQuantum, which is a software development kit accelerating quantum circuit simulations with the help of its powerful GPUs. Also, NVIDIA® CUDA-Q happens to be a first-of-its-kind platform for hybrid quantum-classical computers, allowing integration as well as programming of QPUs, quantum emulation, GPUs, and CPUs in one system. NVIDIA Corporation (NASDAQ:NVDA) has announced that it is working with Google Quantum AI to accelerate the design of its next-generation quantum computing devices through simulations powered by NVIDIA CUDA-Q™ platform.
As per Guifre Vidal, research scientist from Google Quantum AI, the development of commercially useful quantum computers is possible only if it can scale up quantum hardware while, at the same time, keeping noise in check. Notably, Google using the CUDA-Q platform exhibits the central role GPU-accelerated simulations have in advancing quantum computing in a bid to help solve real-world problems. NVIDIA Corporation (NASDAQ:NVDA) has been integrating quantum computing into the AI ecosystem, enabling developers to leverage quantum-inspired AI algorithms utilising its GPUs.
Therefore, research and AI companies are expected to increase spending on NVIDIA Corporation (NASDAQ:NVDA)’s quantum-powered AI solutions, enhancing data center and AI market share. With the expansion of quantum across industries, NVIDIA Corporation (NASDAQ:NVDA)’s cuQuantum SDK, alliances with quantum hardware companies, and AI integration can cement its critical role in hybrid quantum-classical computing, aiding revenue growth.
Overall, NVDA ranks 3rd on our list of best quantum computing stocks to buy right now. While we acknowledge the potential of NVDA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued AI stock that is more promising than NVDA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
