Quantum computing is an exciting technology to invest in right now. It is expected to be the next big evolution in computing, and its capabilities, in principle, will be incredible. However, the areas where this evolving technology is expected to be useful are more esoteric and narrow than the classical computers we're all familiar with, and we're still years away from truly having useful quantum computers.
Also, there are numerous variations on quantum computing technology that are being pursued by the various players in the space, and which will prove better is a question that's still very much up in the air.
Given all that, it's quite difficult to predict how the industry will evolve. As a result, I prefer to avoid investing in pure-play quantum computing stocks that could go to $0 if their tech doesn't work out.
Instead, I'm looking at stocks like Alphabet (GOOG 0.36%) (GOOGL 0.33%) and Nvidia (NVDA 0.79%), which are both competing in and facilitating the rise of quantum computing. I think they are two of the best ways to gain quantum computing exposure without purchasing shares of volatile and risky companies like IonQ (IONQ 1.64%) and Rigetti Computing (RGTI 2.30%).
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Alphabet
Alphabet is the parent company of Google and several other businesses. Its primary source of revenue is selling ads, and a small slice of the profits from that massive cash-generating machine go toward funding its quantum computing endeavors. Unlike the pure-play quantum computing companies, Alphabet isn't dependent on selling equity or borrowing money to survive. Quantum computing isn't a cheap technology to develop, either, so having deep pockets could be a big advantage for Alphabet in this race.
NASDAQ: GOOGL
Key Data Points
Recently, Alphabet also announced some important breakthroughs with its Willow quantum computing chip, including that for the first time, it was able to demonstrate a verifiable quantum computing advantage. The Willow chip delivered results for an exceptionally complex algorithm 13,000 times faster than the world's fastest traditional supercomputer would have been able to. And according to Alphabet, if Willow -- or any comparable machine -- repeated the calculation, it would get the same result.
That ability to cross-check the answer is what made the accomplishment the world's first verifiable instance of a quantum machine showing its advantages over classical computers. And it was a huge step toward proving the commercial viability of quantum computing. This convinced me that Alphabet is a true leader here. If it can develop a commercially viable quantum computing platform, then its cloud computing business could soar further as a result, making Alphabet a fantastic investment. However, even if its quantum computing endeavors fail to become profitable, it still has a great core business and a host of other units, making it a far safer investment than the quantum computing pure plays.
Nvidia
Nvidia's graphics processing units (GPUs) remain the top-tier hardware for accelerated computing, but quantum processing units could supplement such chips in the future.
While the prospect of a new type of chip gaining market share may concern some investors, I'm not particularly worried. For most types of computing tasks, CPUs, GPUs, and other conventional chips will continue to be more suitable tools than quantum computing units. However, Nvidia doesn't want to be shut out of the trend. So it developed NVQLink, an architecture that allows quantum processing units made by a variety of companies to be tightly integrated into traditional supercomputers.
This is a big deal, as it showcases that hybrid computing is closer than many investors realize. With Nvidia capitalizing on the massive AI spending spree, it's able to benefit from the two biggest computing trends of our time, making it a no-brainer stock to invest in right now.
NASDAQ: NVDA
Key Data Points
Over the next few years, Nvidia expects the quantum computing market to dramatically expand. But in the meantime, thanks to the AI trend, global data center capital expenditures are expected to reach $3 trillion to $4 trillion by 2030. Time will tell if that prediction pans out, but given the massive data center capital expenditure plans that AI hyperscalers have already discussed for 2026, it appears we're heading in that direction.
Nvidia has about $300 billion in orders for its most advanced chips to fulfill over the next five quarters, and that's not including other businesses, older chip generations, and potential sales to China that could reemerge.
In light of all that, I think Nvidia's still an excellent buy at its current valuation, as I believe it's primed to soar further throughout 2026 and beyond as AI use keeps expanding and the era of quantum computing slowly dawns.
