Two high-flying AI stocks that have recently been in front of investors are IONQ (NYSE: IONQ) and nvidia (NASDAQ: NVDA). Semiconductor company Nvidia has skyrocketed 53% over the past year as companies are looking for processors amid growing demand for AI. Meanwhile, the stock price of quantum computing company IONQ rose sharply by around 125% at the same time, and we hope that IonQ’s technology will advance AI capabilities.
According to PWC, AI is worth an estimated $15.7 trillion by 2030, and it’s worth asking if current AI stocks are better AI stocks as these companies are at the forefront of these massive trends. This is for each case.
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Nvidia’s AI opportunities are front and center
Nvidia doesn’t need to be featured among tech investors, but if you’re still trying to figure out why this company gets so much airtime in AI conversations, consider these facts.
Nvidia’s AI accelerators range from an estimated 70% to 95% of the AI chip market. The company’s data center revenues rose 93% to $35.6 billion in the fourth quarter of fiscal year 2025, ending on January 26th. Data center spending could rise to $2 trillion over the next five years.
These are all compelling reasons to own NVIDIA shares. Because they prove how much the company is already benefiting from the rise in AI and the potential to continue growing in the years. For example, NVIDIA’s AI processor market share means there is a slight chance that competitors, such as advanced microdevice, will soon penetrate the chip’s territory.
Similarly, Nvidia is probably one of the biggest winners as the tech giants commit hundreds of billions of dollars to data center spending. Meta Platform, Alphabet, Microsoft and others say they will spend hundreds of millions of millions of people this year, with the goal of building a data center infrastructure that can meet AI demands.
Some people are thinking of Deepseek’s recent revelation that some AI startups have less powerful AI models, and AI processors can spell Nvidia’s Doom. I disagree. Given that Deepseek’s AI likely learned from a more advanced AI model (known as distillation), it shows that large tech companies cannot lag behind data center spending as smaller rivals deal with nips on their heels.
As demand for AI data infrastructure increases, the fact remains that businesses will turn to NVIDIA to meet their processor needs. The company recently debuted a new Blackwell AI processor to meet demand, and management said in its latest learning call that sales “exceeded our expectations” and reached $11 billion in the fourth quarter.
In short, Nvidia is at the forefront of the current AI boom, and while there is nothing that will last forever, it is too early to think it benefits.
IONQ bets on the future of large-scale quantum computing
Quantum computing and AI are not the same thing, but they often overlap between the two. For example, IONQ’s quantum computing system is used to enable Microsoft and Amazon to access quantum computing models for AI researchers.
There are a few reasons why some investors are excited about IonQ right now:
The company’s approach to trapping ions for quantum computing processing is a unique approach to the industry. IONQ’s fourth quarter revenue rose 92% to $11.7 million. McKinsey estimates quantum computing will be worth $2 trillion by 2035.
According to IONQ, the quantum computer can create linear chains of ions with the potential to reach more than 100 qubits (the processing unit of quantum computers), and it can have far fewer errors than other quantum computers.
The long-term outlook using IONQ comes from the possibility that quantum computing is a transformational technology that advances science and promotes science, creating new AI models. Although speculative, large tech companies are pursuing quantum computing, including Alphabet and Microsoft, the latter recently releasing their own quantum computing processors.
Looking at the big picture, quantum computing has great potential to disrupt traditional computing in the coming decades. However, its practical applications are currently limited. Nvidia CEO Jensen Huang recently threw cold water into the industry when he said their real applications were still decades away.
Nvidia is a better AI stock
IONQ is lacking in this matchup because the opportunity is too speculative and its inventory is too high. The company’s stock price-to-sell ratio is 167, which is extremely expensive on any measure. And while IONQ’s revenues are rising, it still remains unprofitable, with a net loss of $22 million in the fourth quarter.
Quantum computing could be the next biggest technology trend, but it is still very uncertain whether IONQ’s business will benefit greatly from it, and whether it will take time. Meanwhile, the price of the stock is perfect.
In contrast, Nvidia’s stock prices are relatively expensive, with a forward price of 30 being a multiple. The company is extremely profitable, with the commonly accepted accounting principles (GAAP) revenues of $0.89 in recent quarters.
For all these reasons, Nvidia looks like an AI stock that has ever been there.
Don’t miss this second chance with a potentially advantageous opportunity
Have you ever felt like you missed a boat when buying the most successful stocks? If you do that, you’ll want to hear this.
In rare cases, a team of analysts issue “double-down” stock recommendations for companies they think they are trying to pop. If you’re worried about having already missed the opportunity to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
nvidia: If you invest $1,000 when it doubled in 2009, It costs $323,920! *Apple: If you invest $1,000 when it doubled in 2008, you’ll have $45,851! *Netflix: If you invest $1,000 when it doubled in 2004, then $528,808! *
Currently, we are issuing “double-down” alerts to three incredible companies, and we may not have a chance like this anytime soon.
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*Stock Advisor will return as of March 3, 2025
Randi Zuckerberg, a former director of market development, Facebook spokeswoman and sister to Metaplatform CEO Mark Zuckerberg, is a member of Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of the board of directors of Motley Fool. Chris Neger has no position in any of the stocks mentioned. Motley Fool has positions and recommendations from Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. Motley Fool recommends the following options: A $395 phone at Microsoft for January 2026 length and a $405 phone to Microsoft for January 2026 short term. Motley Fools have a disclosure policy.
The views and opinions expressed herein are the views and opinions of the authors and are not necessarily Nasdaq, Inc. It does not reflect the opinions of
