Why Nvidia Could Be a Bigger Winner in Quantum Computing Than You Might Think
The Motley Fool Australia
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Details
- Date Published
- 23 Nov 2025
- Priority Score
- 2
- Australian
- Yes
- Created
- 24 Nov 2025, 12:06 pm
Description
Nvidia doesn't need to build a quantum computer to make a lot of money in the quantum computing market.
Summary
The article explores Nvidia's strategic positioning in the quantum computing market, highlighting its choice to provide essential tools and services rather than competing in building quantum computers directly. Nvidia's GPUs and CUDA-Q platform are pivotal in quantum simulations, with major cloud providers like Microsoft Azure and Google Cloud integrating Nvidia Quantum Cloud. This 'pick-and-shovel' strategy is similar to Nvidia's successful approach in the AI industry, suggesting potential for substantial growth without the direct production of quantum hardware. While the article does not directly address existential or catastrophic AI risks, it underlines Nvidia's role in advancing critical computing infrastructures that support AI and quantum developments, indirectly influencing the broader discourse on technology safety and governance.
Body
This article was originally published onFool.com. All figures quoted in US dollars unless otherwise stated.Key PointsNvidia Quantum Cloud has already gained widespread adoption with quantum computing developers.The company recently introduced NVQLink to connect quantum and classical computers.Nvidia is following a familiar pick-and-shovel strategy with quantum computing that has worked very well with AI.Back in California's gold rush in the mid-1800s, thousands of individuals flocked to the region hoping to find gold and strike it rich. However, the easy money was instead made by the suppliers who sold tools to the gold prospectors.Today, the term "pick-and-shovel investing" honors that legacy. Oftentimes, providers of ancillary products and services achieve greater success than pure-play companies do.Could this be the case withNvidia(NASDAQ: NVDA)in the quantum computing market? Maybe so.Simulation paves the way for realitySeveral companies are racing to develop large-scale quantum computers that can be utilized in a wide range of practical applications. They include tech giants such as Google Quantum AI parentAlphabet(NASDAQ: GOOG)(NASDAQ: GOOGL),Amazon(NASDAQ: AMZN), andMicrosoft(NASDAQ: MSFT)as well as rising stars likeD-Wave Quantum(NYSE: QBTS)andIonQ(NYSE: IONQ). However, Nvidia isn't in this group.That doesn't mean that Nvidia doesn't have a vested interest in quantum computing, though. And the chipmaker doesn't have to wait for quantum computing to fulfill its potential to make money, either.Researchers must develop simulations of quantum systems to design and test algorithms and circuits. However, access to quantum processing units (QPUs) today is limited and expensive. Nvidia recognized this challenge and offers a solution: Use its graphics processing units (GPUs) on classical computers for quantum simulation.Nvidia Quantum Cloud supports quantum simulation using the company's GPUs and its CUDA-Q quantum computing platform. Roughly 75% of organizations deploying QPUs use CUDA-Q.Three of the four largest cloud service providers have integrated Nvidia Quantum Cloud into their platforms: Microsoft Azure, Google Cloud, andOracle(NYSE: ORCL)Cloud Infrastructure. The notable exception is Amazon Web Services (AWS). However, AWS allows QPU developers to use Nvidia's CUDA-Q.Nvidia's bridge to the futureNvidia's quantum opportunities aren't limited to simulation. The likelihood is that most practical quantum computers will be hybrid systems that connect QPUs with classical supercomputers for the foreseeable future.The problem is that qubits (the basic units of information in quantum computers) are notoriously unwieldy, at least for now. Because they're prone to errors, complex calibration processes and control algorithms are required to keep them on track. Nvidia is addressing this challenge in two ways.First, the company's GPUs are ideally suited for powering the supercomputers needed in hybrid quantum-classical systems. Second, Nvidia has developed a low-latency, high-throughput bridge between QPUs and its GPUs called NVQLink.Nvidia found and CEO Jensen Huang describes NVQLink as "the Rosetta Stone connecting quantum and classical supercomputers." He recently predicted, "In the near future, every Nvidia GPU scientific supercomputer will be hybrid, tightly coupled with quantum processors to expand what is possible with computing."A familiar pathMaking money as a pick-and-shovel play in quantum computing should be relatively straightforward for Nvidia. The company has successfully navigated a similar path inartificial intelligence (AI).OpenAI, Google, and others have developed powerful large language models (LLMs). Many of these companies are also pioneering agentic AI and working on artificial general intelligence (AGI) and AI superintelligence (ASI). Nvidia opted not to compete on their turf. Instead, it's supporting them with the chips and software tools that make their jobs easier.In many respects, Nvidia's strategy in quantum computing mirrors the approach it has taken with AI. With the company generating revenue of $57 billion in the third quarter of 2025 and projecting revenue of $65 billion next quarter, Nvidia's AI strategy is paying off handsomely. I think supplying the picks and shovels for the quantum computing gold rush will prove to be a winning approach over the long run, too.This article was originally published onFool.com. All figures quoted in US dollars unless otherwise stated.