Alan Baratz, the CEO of quantum computing firm D-Wave Quantum (QBTS), said that chipmaker Nvidia should be worried that quantum computing could eventually outperform today’s AI chips. Specifically, he pointed out how much power traditional AI systems require and noted that D-Wave’s quantum computer uses only about 10 kilowatts, which is comparable to a few GPUs. He also claimed that the system can solve certain problems in minutes that would take massive GPU setups a million years to solve.
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Trade NVDA with leverageAs interest in quantum computing grows, the sector is starting to gain attention from investors. In response, Nvidia recently introduced its “Ising” models that are designed to improve quantum error correction. In addition, CEO Jensen Huang emphasized that AI will play a key role in making quantum computing practical.
Nevertheless, the reality today is that quantum technology is in its early stages. In fact, D-Wave reported modest revenue growth but missed expectations and continues to lose money. Moreover, quantum computers are not yet ready to replace traditional chips, as they are still specialized, less stable, and cannot run large AI models. However, future demand looks stronger, with bookings rising significantly and new deals in both commercial and government sectors.
What Is a Good Price for NVDA?
Turning to Wall Street, analysts have a Strong Buy consensus rating on Nvidia stock based on 41 Buys, one Hold, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average Nvidia price target of $273.57 per share implies 39.4% upside potential.
