Over the last few years, growth investors have identified a new pocket of the tech realm with fascinating potential: quantum computing. While quantum computing remains a speculative and research-heavy ambition for the time being, some investors anticipate that this technology could become a core pillar of the artificial intelligence (AI) opportunity in the long run.
Last year, shares of the Defiance Quantum ETF soared by 35% -- more than double the gains in the S&P 500 and handily outpacing the Nasdaq's 21% total return. And while several names in the industry have become overbought due to the hype narrative around the technology, there are two magnificent quantum computing stocks that look quite attractive right now.
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1. Nvidia
There's virtually nothing in the AI landscape that Nvidia(NASDAQ: NVDA) doesn't touch. In the last three years, the company has become a massive player in the data center industry thanks to its comprehensive AI stack, which spans both hardware and software.
One of the cornerstones of the company's quantum computing strategy is the CUDA-Q ecosystem -- an open-source platform that allows developers to program computing applications in a hybrid quantum/classical environment. This innovation piggybacks off of Nvidia's CUDA software platform, which is designed for application development in parallel with its graphics processing unit (GPU) architectures.
Another way Nvidia is investing in quantum computing is through its cuQuantum software developer kit. This suite enables researchers to create simulated models to explore the behaviors of qubits instead of investing in costly physical hardware.
Eventually, quantum computing could be the foundation for breakthroughs in applications such as complex business simulations, optimizing neural networks, and reducing data centers' energy consumption. Against this backdrop, research and development into quantum computing reinforces the long-term need for Nvidia's GPUs and accompanying software -- paving the way for its sustained growth beyond AI data centers.
Image source: Nvidia.
2. Alphabet
Alphabet(NASDAQ: GOOGL)(NASDAQ: GOOG), too, is pursuing quantum computing through both new hardware and software.
Through its Google Quantum AI division, Alphabet has developed a quantum chip -- dubbed Willow. According to the company's marketing, the Willow chip was able to process a complex benchmark test computation in roughly five minutes that would have taken the world's most advanced supercomputers 10 septillion years to solve.
In addition, Alphabet offers an open-source quantum platform called Cirq, as well as a hybrid framework known as TensorFlow.
Each of these applications could provide significant improvements to the core products within Alphabet's ecosystem. For example, quantum AI algorithms could lead to improved indexing on Google -- leading to better ad targeting. In addition, the ubiquity of Cirq and TensorFlow could unlock opportunities for Alphabet in new markets such as drug discovery, financial services, and even energy modeling.
Why Nvidia and Alphabet are no-brainer buys right now
Despite the long-term upside quantum computing could have on their respective businesses, Nvidia and Alphabet have both experienced meaningful valuation de-ratings as of late.
With a forward price-to-earnings (P/E) of just 22, Nvidia stock is now hovering near its cheapest level since the AI revolution took off. Meanwhile, Alphabet's forward P/E of 27 is nominally below the two-year high above 30 that it touched in late 2025.
To me, these trends suggest that growth investors may be pricing Nvidia and Alphabet with a degree of caution right now. Whether that is due to fears of an AI bubble, concerns about the sustainability of accelerating data center infrastructure investments, or a discounting of quantum computing's potential, it would appear that capital is rotating away from these megacaps at the moment.
Indeed, deploying quantum computing at the enterprise level will take quite some time -- and none of the systems available thus far are ready for commercialization. Nevertheless, it's encouraging to see Nvidia and Alphabet deploying capital beyond their respective core markets and aggressively seeking ways to branch into new verticals.
I expect that quantum computing will become another structural layer in AI technology that should help Nvidia and Alphabet maintain their durable, strong positions in that landscape. For this reason, investors with long-term horizons can view this as a rare opportunity to buy the dip in these two industry-leading AI developers.
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Adam Spatacco has positions in Alphabet and Nvidia. The Motley Fool has positions in and recommends Alphabet and Nvidia. The Motley Fool has a disclosure policy.
