Better Artificial Intelligence Stock: D-Wave Quantum vs. Nvidia

Key Points

• D-Wave Quantum and Nvidia are delivering vastly different offerings to the AI sector.

• D-Wave's quantum computers can quickly complete complex calculations that would take centuries on a supercomputer.

• Nvidia's Blackwell superchip bridges the gap between today's computers and quantum technology.

• 10 stocks we like better than D-Wave Quantum ›

Artificial intelligence (AI) is transformative technology, but quantum computing could elevate AI to unprecedented heights. Quantum machines employ the properties of quantum mechanics to deliver potent processing power beyond the ability of current classical computers.

D-Wave Quantum (NYSE: QBTS) is one of the companies at the forefront of applying quantum computing to AI. But is it a better AI investment than Nvidia (NASDAQ: NVDA), a leader of today's artificial intelligence revolution?

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Arriving at an answer requires digging deeper into both companies and understanding their respective approaches to advancing artificial intelligence.

Image source: Getty Images.

D-Wave's marriage of AI and quantum computing

D-Wave is developing annealing quantum computers, a method to identify the best solution among many possible choices. The company demonstrated the strength of this approach by using it to complete complex calculations in minutes that would have taken 1 million years on classical supercomputers.

D-Wave released an AI toolkit this year, allowing software developers to tap into its quantum computers. The company described the achievement as "a milestone in quantum AI development." These tools integrate D-Wave's quantum systems with PyTorch, a leading framework for building AI models.

Leveraging quantum devices for AI can significantly lower the rapidly increasing cost of building AI models. This approach also harnesses the superior computational power of quantum computers. Research centers in Germany, Canada, and Japan have achieved AI improvements using D-Wave's quantum machines.

The company's technological advances contributed to second-quarter revenue growing 42% year over year to $3.1 million. That said, Q2 operating expenses soared 41% year over year to $28.5 million, resulting in an operating loss of $26.5 million.

Nvidia's AI advances

Nvidia's state-of-the art semiconductor chips helped to kick off the current wave of generative AI applications, such as OpenAI's ChatGPT. Its latest chip technology, called Blackwell, is pushing the boundaries of what classical computers can do.

Blackwell was designed to support the largest, most complex AI models. To do so, Nvidia fused multiple semiconductor chips together into a superchip, which lives in a rack holding other components that collectively weigh over a ton. Each rack is a single, massive computer processor.

Blackwell is so powerful, Nvidia is using it to bridge classical and quantum computers. Users can create quantum software applications through Blackwell without needing access to a quantum machine.

Nvidia envisions a period where quantum and classical computers depend on each other. Currently, quantum devices face significant hurdles, such as calculation errors, which hinder widespread adoption. Nvidia sees the Blackwell platform working in concert with quantum computers to overcome these challenges.

Blackwell production began in late 2024, and it's selling well. In the company's fiscal Q2, ended July 27, Blackwell sales rose 17% over Q1, contributing to Q2 revenue growing 56% year over year to $46.7 billion. This success resulted in operating income climbing 53% year over year to $28.4 billion.

Making a choice between D-Wave Quantum and Nvidia stocks

At this point, Nvidia's Blackwell platform is keeping pace with D-Wave in the race to power increasingly potent AI. However, shares of D-Wave have seen the greater gains in 2025, surging over 200% through the week ending Sept. 19, helped by the Federal Reserve cutting interest rates. Nvidia's stock was up more than 30% in that time, a robust gain in its own right.

But aside from the technological advances each company is making, another factor to consider is share valuation. Since D-Wave isn't a profitable business, valuation can be assessed using the price-to-sales (P/S) ratio.

Data by YCharts.

Since D-Wave's share price took off recently, its P/S ratio has skyrocketed, and the chart reveals it's now more than 10 times higher than Nvidia's. This indicates D-Wave stock is expensive by comparison.

Although quantum computing's potential is exciting, it's a nascent technology with significant challenges to overcome. It's too early to tell whether D-Wave's tech or a competitor's will win over the long run.

In addition, D-Wave's rising operating loss compared to its minimal revenue will eventually put the company in financial trouble if it doesn't reverse. Meanwhile, Blackwell's help to address quantum computing's shortcomings means Nvidia can partner with D-Wave, as well as other quantum computing companies.

Nvidia's AI tech, measured approach to a quantum computing transition, profitable and growing business, and better share price valuation make it the superior AI investment over D-Wave.

On top of these advantages, Nvidia recently announced multibillion-dollar investments in Intel and OpenAI to build out infrastructure for artificial intelligence, further strengthening its offerings. Nvidia is firing on all cylinders, making it a great long-term investment in AI.

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Robert Izquierdo has positions in Intel and Nvidia. The Motley Fool has positions in and recommends Intel and Nvidia. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.