Prediction: Quantum computing will be the top AI trend in 2025, and this inventory will lead the way

I am sure you are now aware that Artificial Intelligence (AI) is by far a good opportunity to boost the knowledge and experience sector. Under the AI ​​umbrella, semiconductor stocks have been among the good beneficiaries. This is wonderful because software plays a key role in approaching countless generative AI choices.

Alternatively, in the past several months, the residence defined as quantum computing has emerged as potentially the most new intellectual facility in the field of artificial intelligence.

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In the following, I will stumble on how quantum computing stocks have been provocative, and later I will show that I am very interested in which company is preparing a deal for this fresh and enthusiastic know-how.

Are quantum computing shares the new darlings of artificial intelligence?

Quantum computing represents a remarkable new chapter in the AI ​​story. Not surprisingly, investors have struggled to decide on methods for investing in quantum computing. Try the properties in the table below:

RGTI data YCharts

Towards the break in 2024, quantum computing shares are equal IonQ, D-Wave Quantum, Quantum computingand Rigetti Computing all experienced major spin-ups. Oddly enough, each of these companies first became a penny stock in 2024 – most conveniently heading their valuations effectively into the billions soon in a barely short time frame.

While the moves above may perhaps suggest that these stocks are the “next big thing” in AI, I might perhaps caution against following a herd mentality. Each of the above agencies is a fashion stage agency. This means that no one is generating more income and everyone is spending money over and over again. In other words, the exponential upsides shown in the chart above are meme stock picks rather than healthy, prudent investment alternatives.

Even assuming that the above allotment costs might mean that these stocks are underpriced, the valuation multiples suggest that none of them deserve a high valuation.

With all of this acknowledged, there are a bunch of safer alternatives with the regulation of quantum computing.

Image credit: Getty Photography.

Here’s my big wish for investors trying to get quantum computing publicity

Common industry thinking means that those who soon became the wealthiest in the Gold Urge were the distributors selling picks and shovels, not the miners trying to extract the gold. The underlying thought here is that whenever a brand new topic comes up on this investing planet, in most cases it’s right to name the agencies that sell metaphorical picks and shovels.

Regarding quantum computing, I scoff Nvidia (NASDAQ: NVDA) because tipping is an opportunity.

In a recent interview at the CES substitute event in Las Vegas, Nvidia CEO Jensen Huang admitted that he thinks quantum computing might not take off in the next twenty years. I look at the leaders and the cons on this view.

For companies the equivalent of IonQ, Rigetti Computing, D-Wave and Quantum Computing, Huang’s comments advise that there might be a fair amount of work to complete earlier than any of those agencies finding themselves in a big bid . In the interim, this apparent potential will be pursued by each of these companies by spending significant capital on teaching and fashion (R&D) and live cash-burning operations.

While this may not really represent a large-scale environment for these companies, in most cases it is a real opportunity for Nvidia. The development of quantum computing requires large investments in various AI infrastructure, including graphics processing units (GPUs), data products and providers, and power. Nvidia represents all three of these commodities, giving the company a large stake in the quantum computing circuit.

To me, Nvidia is part and parcel of the pick-and-shovel quantum computing fad. In many ways, Nvidia has the luxury of being agnostic about which companies are undoubtedly making breakthroughs in quantum mechanics and which aren’t. Regardless, Nvidia’s hardware and power is unrelenting.

Considering that quantum computing is seemingly a long way from reaching scale, this means that Nvidia has a bunch of advantages as additional companies are launching so much to acquire this new residence of the AI ​​landscape. While there are many reasons to favor Nvidia in 2025 and beyond, I loathe quantum computing as just another tailwind that can’t really even begin to be valued in the company’s long-term capabilities. I’m betting Nvidia is a lucrative opportunity to buy and protect for a bunch of extra years, especially for bid investors or those trying to get deep publicity for AI picks.

Will you need to invest $1000 in Nvidia now wisely?

Old to buy nvidia stock, set this in mind:

The Motley Idiot Inventory Advisor a group of analysts simply figured out what they had 10 easiest divisions for investors to buy now… and Nvidia wasn’t one of them. The 10 stocks that fell may just be inventing monster returns in the coming years.

Help in mind when Nvidia made this checklist on April 15, 2005… in case you invested $1000 at the time of our advice, you would have $843,960!*

Inventory consultant essentially presents investors with a hands-on, hands-on blueprint for success, including portfolio construction guidance, traditional analyst updates, and two new stock picks each month. The Inventory consultant the carrier has greater than four times S&P 500 return since 2002*.

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*Inventory Consultant returns on January 13, 2025

Adam Spatacco holds positions in Nvidia. Motley Idiot has positions and recommends Nvidia. Motley Idiot is protected from disclosure.

The views and opinions expressed herein are those of the creator and do not necessarily reflect those of Nasdaq, Inc.