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Nvidia’s software will bridge the gap between traditional and quantum computing.
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Taiwan Semiconductor’s chips will be used in both applications.
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ASML’s machines help chip foundries manufacture cutting-edge chips.
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10 stocks we like better than Nvidia ›
Similar to artificial intelligence (AI) investing, quantum computing offers investors a wide range of options. There are quantum computing pure plays that give investors massive upside in exchange for risk. Other cloud computing players will benefit from increased workloads being run on their clouds due to having access to quantum computers.
And there’s another branch of companies that will provide some of the components necessary to make quantum computing a reality. That last cohort is also heavily involved in the artificial intelligence arms race and is an intriguing group to consider.
These are some backdoor quantum computing plays that not every investor is thinking about, and are worth considering buying right now.
Nvidia (NASDAQ: NVDA) and its graphics processing units (GPUs) have built the majority of the AI computing power that we know today. There is a massive amount of computing power still to be built out, which will create a massive network that quantum computing will eventually have to interface with. While quantum computing can deliver impressive results on its own, the real value comes from integrating quantum computing with traditional computing in a hybrid approach.
This will require some specialized software to communicate with quantum computers, which Nvidia has already developed. One of the main reasons why Nvidia was the dominant company in the AI arms race to date is its CUDA software, which allows developers to control GPUs to divide workloads and have them do specific tasks. Nvidia has already adopted this software to interface with quantum computers, launching CUDA-Q.
This software ensures that Nvidia hardware will need to be used to bridge the gap between quantum and traditional computing, making Nvidia a benefactor of the quantum computing arms race, regardless of which company develops a winning solution. Furthermore, Nvidia is already winning the AI computing hardware arms race, making it an already successful business.
This makes Nvidia stock a great buy in both the quantum and AI investing realms, and this stock has plenty of room to run if both of these trends continue panning out.
Both quantum computing and AI are impossible without high-tech specialized chips. There’s one chip foundry in the world that stands out from the others with its leading technology and impressive yields, and that’s Taiwan Semiconductor Manufacturing (NYSE: TSM). It’s the largest chip foundry by revenue, and has established itself as a technological leader in this space.
