Over the past few years, Nvidia (NVDA +1.73%) has gone from a mid-tier tech company to the world’s most valuable public company, with a market cap of over $5.1 trillion as of May 7. It has the artificial intelligence (AI) boom to thank, but you could make the strong case that the AI boom wouldn’t have happened without Nvidia.
Nvidia isn’t just stopping at its highly sought-after GPUs, either. Its CEO, Jensen Huang, announced that the company had created the world’s first family of open-source quantum AI models, called Nvidia Ising.
Image source: The Motley Fool.
If you’re wondering what that means, you’re not alone. But to put it semi-simply: Quantum computing is a new way of solving massive problems that is millions of times more powerful than a traditional computer or supercomputer. The problem, though, is that quantum computing is still in its early stages and has too many errors and stability issues to be a viable mainstream option.
Instead of joining companies like Alphabet, IonQ, and IBM that are building hardware to make quantum computing work, Nvidia is building the AI software to manage them. No matter who winds up making the best quantum computing hardware, Nvidia is trying to control the “brains” of it.
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Quantum computing is a ways off from being commercially practical, but Nvidia Ising shows that the company is positioning itself as part of an emerging technology, even if nothing tangible may come of it in the next decade. That’s the long-term vision investors should appreciate.