Nvidia (NVDA 3.28%) is a clear leader in the artificial intelligence (AI) race. Its graphics processing units (GPUs) powered AI model training and processing since the start, and Nvidia has continued to release innovative products to maintain its position. However, traditional computing is just one way to train AI; another approach that could gain popularity soon is quantum computing.
While Nvidia hasn't fully committed to quantum computing, it is ensuring its support through various efforts that could enable Nvidia to bridge the gap between traditional and quantum computing. With Nvidia's involvement in the space, does that make it a smart quantum computing stock to buy now? After all, the relevance of quantum computing is still likely years away.
Image source: Nvidia.
Nvidia is acting as a support company in quantum computing
Nvidia isn't directly involved in building quantum computers. It's leaving that to pure-play quantum computing companies and other big tech companies. However, it is focusing on a hybrid approach that combines both quantum and traditional computing. Its focus on the hybrid approach involves providing the hardware and software on the traditional side to bridge the gap and interact with quantum processing units (QPUs) that others are developing.
Perhaps the biggest contribution is the launch of CUDA-Q, a quantum computing-focused version of Nvidia's software. Nvidia's CUDA software was a primary reason for the success of its GPUs in the AI realm. If Nvidia's CUDA-Q software can become the go-to platform for quantum computing, it will position itself nicely within the industry.
NASDAQ: NVDA
Key Data Points
This approach is smart, as it doesn't require Nvidia to invest a significant number of resources in the quantum computing race, unlike other companies. Instead, it's developing tools that will help the company that emerges on top to bring quantum computing to mainstream markets.
This will be some time, as most quantum computing companies point toward 2030 as an inflection point for the widespread availability of quantum computers. With relevance years away, investing in quantum computing pure-plays with no other revenue stream is perilous. That's why picking a big tech competitor in the quantum computing arms race is a smart idea, or investing in a company like Nvidia, which will benefit from the rise of quantum computing regardless of the winner.
As a result, I think Nvidia is a smart way to invest in quantum computing, and it should be on investors' short list for top quantum computing picks. But is Nvidia a smart buy in today's market?
Nvidia's stock appears to be expensive, but it has strong growth ahead
The market has had a strong few months, and Nvidia's stock has risen in tandem. The stock is up nearly 30% this year, which caused Nvidia's valuation to spike.
NVDA PE Ratio (Forward) data by YCharts
At 40 times forward earnings, it's far from cheap, but it's not all that more expensive than other big tech stocks. Unlike its peers, Nvidia is growing at a rapid pace, with revenue expected to increase 50% in Q2.
Additionally, 2026 could be another strong year for data center demand, as the AI hyperscalers have all announced record spending in 2025, which is likely to increase in 2026 as these data centers are built and require Nvidia GPUs to be installed.
As a result, I believe Nvidia remains a solid investment opportunity, with significant growth potential still to be realized from the AI buildout, and quantum computing could drive further growth around 2030.
