Last year, investors poured into artificial intelligence (AI) stocks, and the biggest players – from Nivea (NASDAQ: NVDA ) to the Amazon — Helped the overall market grow. of S&P 500of Dow Jones Industrial AverageAnd Nasdaq Each of them came out in double figures. The technology has inspired such excitement because it has the potential to transform many industries.
As this AI boom accelerated, other hot technologies picked up speed. I am talking about the related area of quantum computing. In AI, Large Language Models (LLM) Train people to learn everything they know and then solve problems that involve reasoning.
Quantum computing uses the principles of quantum mechanics to solve problems that classical computers cannot handle. These technologies could be very helpful — and that’s why investors are paying particular attention to recent words from Nvidia boss Jenson Huang.
During CES earlier this month, Huang said that useful quantum computers are about 20 years away, giving investors hope for an imminent possibility. Shares of Quantum Players fell, with It eliminates the calculation(NASDAQ: RGTI ) And Quantum computing(NASDAQ: QUBT ) 45% and 43% loss per trading session.
Still, these two players have each grown over 1,000% over the past year. While Huang’s words and subsequent share performance were memorable, there is some reassuring news for anyone investing. Shares of quantum computing Today. Let’s check it out.
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So, first, let’s consider what quantum companies are doing now and what Jensen Huang recently said. As mentioned, this type of calculation is based on quantum mechanics — the science that deals with the behavior of matter. Like ordinary computers, quantum computers process large amounts of information using qubits instead of using bits to process information.
Quantum computers handle information differently than classical ones, resulting in higher speeds. A quantum computer can take minutes to solve a problem, while a classical computer takes thousands of years.
Righetti, the developer of the first multichip quantum processor for microscale systems, is selling its quantum computers starting in 2023. Just recently, the company released its 84-qubit ANKA-3 system, a platform that has reached key precision. The system includes a new hardware design and an improved qubit chip.
Quantum Computing provides customers with enterprise software for quantum computing and high-performance quantum systems. The company’s long-term project involves designing and manufacturing the crystalline material lithium niobate for use in quantum computing products – for which it is currently building a manufacturing facility.
Rigetti or Quantum are still not profitable. This is generally the case with companies currently focused specifically on quantum computing, as they are still very focused on the research and development of these new-ish systems.
This brings me to the harsh comments of quantum companies earlier this month. According to Huang, the CEO of NVIDIA, “very useful quantum computers” will probably be available in 20 years.
Although investors may see this as disappointing, there is some reassuring news. Quantum computing is on the way, which means these companies will report breakthroughs and breakthroughs in the coming months and years — and these could represent catalysts for quantum computing stocks to move higher.
Some positive stimulus may also be around the corner. Microsoft In the year It announced that 2025 is the year companies will become “quantum ready” and launched a new Quantum Ready program to help businesses do just that. The company offers tools to help put customers on the right track, build their quantum capabilities, access quantum computers, and more.
And Nvidia, in a move that shows its faith in this potentially game-changing technology, announced its first ever Quantum Day on March 20. It will be part of the GPU Technology Conference (GTC), Nvidia’s annual AI conference. Featuring many experts in the field, Quantum Day will cover what is happening in quantum computing today and what might happen in the future. A special address highlights work that can shorten the timeline to relevance.
All of this means that even if it takes years for quantum computing companies to achieve significant revenue and profits, their shares can still rise on growth news in the months and years ahead. And that’s great news for investors looking to hold these stocks for the long term.
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