Investors looking to gain exposure to quantum computing might find a more prudent strategy in diversifying their portfolios with established technology giants rather than placing bets on niche companies specializing purely in quantum technology. As quantum computing transitions from experimentation to commercialization, its market is projected to grow significantly. According to MarketsandMarkets, the global quantum computing market is expected to expand from $3.5 billion in 2025 to $20.2 billion by 2030.
Investing in companies that focus solely on quantum computing can be risky due to their minimal revenue streams and the substantial ongoing investments required for research and development. Instead, established tech companies, which can fund quantum initiatives through their profitable operations, offer a more balanced investment strategy.
Two notable companies that exemplify this approach are Nvidia and Microsoft.
Nvidia has already solidified its position as a leader in the global artificial intelligence infrastructure sector. The company is focused on developing advanced AI server systems that integrate chips, networking hardware, and software for both training and real-time deployment of significant AI models within data centers globally. Nvidia’s robust demand is evident, as management reports over $500 billion in orders for its latest processors, suggesting a strong cash flow that could positively influence its stock price.
In addition to its AI dominance, Nvidia is pioneering connections between traditional supercomputers and quantum technology via its NVQLink technology. This innovation enables supercomputers to take on essential tasks in quantum computing, such as calibration and error mitigation, effectively providing a hybrid platform that could bring quantum computing into the mainstream.
Building on this foundation, Nvidia, in collaboration with Quantum Machines, recently launched the DGX Quantum system, which has an early access program set to commence in early 2025. This initiative allows research institutions and quantum hardware enterprises to test the system in practical scenarios. Furthermore, Nvidia’s CUDA-Q open-source platform facilitates seamless program development across classical and quantum computing resources, positioning the company as a reliable avenue for investors interested in quantum technologies.
Microsoft presents another appealing option for those seeking quantum computing exposure. A significant player in the enterprise software industry and cloud computing, Microsoft’s Azure cloud platform has become essential for numerous enterprise clients. The company is actively integrating quantum technology into its services through Azure Quantum, enabling users to run hybrid workloads without the need to possess quantum hardware.
In its quest to advance quantum computing, Microsoft is developing logical qubits—groupings of physical qubits designed to enhance error resistance. Collaborating with the startup Quantinuum, Microsoft has successfully built a system that uses logical qubits for complex end-to-end chemistry simulations. These developments demonstrate the steady advancements in Microsoft’s quantum initiatives.
Furthermore, Microsoft has introduced the Majorana 1 quantum chip, which utilizes a new qubit architecture aimed at lowering error-correction costs. While still in the experimental stage, this innovation could significantly bolster Azure’s competitive position in the future if validated successfully.
Both Nvidia and Microsoft provide lower-risk pathways for investors to engage with the burgeoning field of quantum computing, stepping away from the high volatility associated with pure-play quantum firms. Their established market presence and strong business foundations create a promising backdrop for potential growth in this transformative technology sector.
