Stocks that offer exposure to both the quantum computing and artificial intelligence (AI) themes may not be common, but there are a handful of companies that have their hands in both of those developing technologies. One of them is Nvidia (NASDAQ: NVDA), and it may be the most intriguing investment option of the bunch.
Missed AI’s “Act 1”? Act 2 Could Be 15x Bigger.Most investors think they missed the AI boat because they didn’t buy Nvidia in 2005. But according to our analysts, we’re only at the end of “Act 1″—the R&D phase. “Act 2” is the global rollout.Continue »
Nvidia isn’t pursuing a quantum computing unit
Nvidia has told investors that it isn’t working on its own quantum computing unit. Instead, it’s choosing to focus its resources on traditional computing, even as it recognizes that quantum computing is likely to become a significant part of the future. The tech giant is convinced that most useful quantum computing will happen in hybrid environments, with quantum computers handling the highly specific processing tasks that only they can accomplish, supported by traditional computer servers doing the rest.
So instead of spending billions of dollars trying to develop a quantum processor, it is letting others do that work.
To support them, Nvidia has launched several products. The most important is its NVQLink, which allows many different types of quantum computers to be plugged into accelerated computing networks powered by its GPUs. This gives quantum computer developers the ability to seamlessly integrate their hardware with computing networks already operating worldwide.
Nvidia has also done other useful tasks for the industry, such as adapting its nearly ubiquitous CUDA software platform to work with quantum computing systems, denoting the new software as CUDA-Q. And its Ising model speeds up the calibration of quantum processors, and performs “quantum error-correction decoding that is up to 2.5x faster and 3x more accurate than traditional approaches,” per the company.
Such products will secure Nvidia’s spot as a key partner to players in the quantum computing realm as the technology inches closer to relevance.
Furthermore, Nvidia is clearly one of the best companies in the AI space to invest in. Management estimates that its revenue will grow by 70% in its upcoming fiscal year. It also trades at an attractive 24.4 times forward earnings.
Nvidia is an excellent investment option to take advantage of the massive levels of AI infrastructure spending happening right now, but it also gives you exposure to the upside potential of viable quantum computing, assuming that the technology arrives as its proponents hope it will.
