Nvidia emerges as top pick in quantum computing with strong revenue and potential for growth

From Nasdaq: 2025-06-19 20:00:00

The Defiance Quantum ETF has surged by 41% in the last year, driven by quantum computing stocks like IonQ, Rigetti Computing, and D-Wave Quantum with gains exceeding 1,000%. Despite the strong performance, there is another company on the radar that could outperform these stocks in the long run.

Nvidia is emerging as a top pick in quantum computing, with 90% of revenue coming from the data center segment. The company’s CUDA programming platform integrates software and hardware, providing a competitive edge in generative AI development. Nvidia’s move into quantum computing with CUDA-Q could be a lucrative strategy for the company.

With Nvidia’s forward P/E ratio at 33.7, the stock is not cheap but has experienced valuation expansion recently. The company’s pursuit of quantum computing and software applications through CUDA could help maintain a healthy profit margin profile. Despite recent momentum, Nvidia remains a cheaper stock compared to a year ago based on forward P/E trends.

Investors should consider Nvidia as the rise of quantum computing presents an opportunity for the company to diversify beyond AI data centers. The stock looks reasonably valued, and with a multibillion-dollar market in quantum computing, Nvidia’s long-term narrative remains compelling. Consider joining the Stock Advisor to access the 10 best stocks for potential high returns.



Read more at Nasdaq: If I Could Only Buy 1 Quantum Computing Stock, This Would Be It (Hint: It’s Not IonQ)