Here's Some Reassuring News for Anyone Invested in Quantum Computing Stocks


Last year, investors poured into artificial intelligence (AI) stocks, and the biggest players — from Nvidia (NASDAQ: NVDA) to Amazon — helped the general market soar. The S&P 500, the Dow Jones Industrial Average, and the Nasdaq each climbed in the double digits. The technology spurred such excitement because it has the potential to revolutionize many industries.

As this AI boom gained momentum, another hot technology was picking up speed. I’m talking about the related area of quantum computing. In AI, large language models (LLM) train to learn all that humans know so that they can then go on to solve problems that involve reasoning.

Quantum computing harnesses the principles of quantum mechanics to solve problems that classical computers can’t handle. These technologies can be very complementary — and that’s why investors paid particular attention to recent words from Nvidia Chief Jensen Huang.

During CES earlier this month, Huang said useful quantum computers are about 20 years away, disappointing investors hoping for a nearer-term opportunity. Shares of quantum players plummeted, with Rigetti Computing (NASDAQ: RGTI) and Quantum Computing (NASDAQ: QUBT) losing 45% and 43%, respectively, in one trading session.

Still, these two players each soared more than 1,000% over the past year. While Huang’s words and the ensuing share performance won’t be forgotten, there is some reassuring news for anyone invested in quantum computing stocks today. Let’s check it out.

The words quantum computing written across the image of a chip.
Image source: Getty Images.

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 ordinary computers do, quantum computers process much more data using qubits.

Quantum computers handle information differently from classical ones, which can result in tremendous speed. A quantum computer may take minutes to resolve a particular problem, while a classical computer would require thousands of years.

Rigetti, developer of the first multichip quantum processor for scalable systems, has been selling its quantum computers since 2023. Just recently, the company launched its 84-qubit Ankaa-3 system, a platform that reached a key accuracy milestone. The system includes a new hardware design and an improved qubit chip.

Quantum Computing offers customers enterprise software for quantum computing and high-performance quantum systems. The company’s long-term project involves scaling up 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’s building out a manufacturing facility for this purpose right now.



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