If you're intrigued by Quantum Computing, You Might Find Nvidia's CEO's Recent Remarks of Interest
In a recent talk at CES 2025, Nvidia CEO Jensen Huang shared his thoughts on quantum computing, causing a stir in the tech world. While recognizing the potential of quantum computing, Huang warned that we might need to wait up to 20 years before we see "very useful" quantum computers. This is due to the technical challenges of scaling these machines to fault-tolerant systems.
Huang's remarks sent shockwaves through the market, as several quantum computing stocks took a dive. And it's not hard to see why. After all, these stocks had been on a roll for months, with companies like Rigetti Computing, IonQ, and D-Wave Quantum enjoying significant momentum. However, Huang's doubts about the technology's readiness cast doubt on these investments.
But before you decide to bail on quantum computing, it's important to remember that these tech giants are still in their infancy. They're not generating much revenue, and they'll likely burn through cash for a while. And let's not forget that influential players in the industry – like Huang himself – can have a big impact on market trends with their words. So while Huang's comments were far from negative, they prompted investors to take a hard look at quantum computing's long-term potential.
So should you dive into the quantum computing sector? If you're set on investing in this space, you have a few options. You could purchase specific quantum computing stocks, like those of Rigetti Computing or D-Wave Quantum. Or you could opt for a bit more insulation with a quantum computing-themed ETF, such as the Defiance Quantum ETF. But remember, thematic investing can be riskier than investing in a broader market fund.
If you want to play it safe, you might consider investing in diversified megacap technology companies that are dabbling in quantum computing as part of their broader AI strategies. Companies like IBM, Alphabet, and Microsoft are all exploring quantum computing, while still focusing on other areas of innovation. You might also consider companies like Nvidia or AMD, which will play a significant role in developing quantum chips.
At the end of the day, Huang's skepticism about quantum computing's immediate potential is worth considering. But it's important to remember that even if quantum computing isn't ready for primetime just yet, its long-term potential is immense. And you know what they say – patience is a virtue. So while you may want to exercise caution in this space, there's no reason not to keep an eye on developments in quantum computing as the industry continues to evolve.
Investors should be wary of Huang's doubts about quantum computing's readiness, as they could impact investments in companies like Rigetti Computing and D-Wave Quantum. Despite the challenges, the long-term potential of quantum computing is immense, making it a compelling investment option for those willing to exercise patience.
