Nvidia Corp. (NASDAQ:NVDA) has made a big leap into quantum computing with its involvement in a $600 million funding round for Quantinuum, a majority Honeywell International Inc. (NASDAQ:HON)-owned quantum technology company.
The funding round, which puts Quantinuum at around a $10 billion valuation, also involves investments from JPMorgan Chase & Co. (NYSE:JPM), Mitsui & Co. (OTCPK: MITSF), Amgen Inc. (NASDAQ:AMGN), and various venture capital firms, according to Bloomberg.
The investment is a significant vote of confidence in the commercial viability of quantum computing. Nvidia Chief Executive Officer Jensen Huang said last month that the technology is getting to “an inflection point” and could be an effective computing method sooner rather than later. The firm is uniting its quantum algorithm stack with its Grace Blackwell 200 chip, putting its hardware on the path for quantum-ready workloads.
For investors, this development has implications beyond the immediate venture funding. While pure-play quantum computing equities remain limited, several ETFs already provide indirect exposure to the theme through holdings in companies advancing quantum research, hardware, and software solutions.
The Defiance Quantum ETF (NASDAQ:QTUM) is presently the most focused vehicle in this category, targeting companies engaged in quantum computing and adjacent next-generation technologies. The fund has stakes in Nvidia, Honeywell, Microsoft Corp (NASDAQ:MSFT), and other companies working on quantum development.
Also Read: EXCLUSIVE: Why Defiance ETF CEO Sees Big Gains Ahead During Nvidia’s 6G Revolution
Wider innovation-focused ETFs such as the WisdomTree Artificial Intelligence & Innovation Fund (BATS:WTAI) and the ARK Autonomous Technology & Robotics ETF (BATS:ARKQ) expose investors to related technologies that will cross over with quantum computing in the long term. These funds take positions in companies leading robotics, artificial intelligence, and high-end computing, areas that may stand to gain from advanced quantum developments.
Similarly, the Global X Robotics & Artificial Intelligence ETF (NASDAQ:BOTZ), although primarily focused on automation, is poised to indirectly benefit from quantum computing, as it enhances the processing capabilities for AI model training, security, and industrial automation applications.
Honeywell has signaled that it will spin off Quantinuum in an initial public offering, perhaps as soon as 2027. The deal would give ETF issuers a pure-play quantum computing security to anchor new thematic products. Typically, ETF product creation lags increased market attention to nascent industries, so that dedicated quantum computing ETFs might appear before or in conjunction with a listing of Quantinuum.
Nvidia’s investment thus represents both a seal of approval on the direction of the sector and a potential stimulus for rethinking thematic ETF strategies in the next few years.
Read Next:
Photo: Chung Hao Lee / Shutterstock
