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Nvidia CEO Jensen Huang Admits He Was Wrong About Quantum Computing. Are Quantum Stocks Buys Right Now?
QMCOQuantum(QMCO) The Motley Fool·2025-04-11 07:00

Core Insights - Nvidia CEO Jensen Huang initially expressed skepticism about quantum computing, suggesting it was 15 to 20 years away from commercial viability, leading to a sell-off in related stocks [1] - At the recent Nvidia GPU Technology Conference, Huang reversed his stance, acknowledging potential misinformation and announcing new investments in quantum research [2] Quantum Computing Landscape - Quantum computers are designed to perform complex calculations in areas like machine learning and cryptography, surpassing traditional supercomputers [3] - Unlike classical computers, quantum computers utilize qubits, allowing for greater processing power through superposition and entanglement [4] Current Market Developments - IonQ reported 47millioninrevenuefor2024throughitsquantumcomputingas−a−servicemodel,projectingnearlydoublerevenuegrowththisyear[5]−D−WaveQuantumhas135customersexploringapplications,withitsstockupover22047 million in revenue for 2024 through its quantum computing as-a-service model, projecting nearly double revenue growth this year [5] - D-Wave Quantum has 135 customers exploring applications, with its stock up over 220% in the past year [5] Challenges and Future Outlook - The industry is still in the Noisy Intermediate-Scale Quantum (NISQ) era, facing challenges in scaling qubits and managing error rates, limiting applications to niche areas [6] - A breakthrough into the post-NISQ era could arrive sooner than expected, with systems featuring hundreds of thousands of qubits [7] Competitive Landscape - Major tech companies like Alphabet and Microsoft are investing in quantum research, with a projected 170 billion market opportunity by 2040 [8] - Microsoft introduced the Majorana 1 quantum chip, which aims to stabilize qubits and accelerate commercial applications [8] Investment Opportunities - There are near-term growth opportunities for pure play quantum companies, as early adopters across industries invest heavily in quantum development [9] - The quantum computing sector is viewed as a long-term growth driver, with potential for established tech giants and emerging companies to capitalize on this trend [10] Market Sentiment - Following a sell-off, there is cautious optimism about investing in quantum computing stocks, particularly for companies that can monetize superior platforms [11]