Nvidia Stock Rally Takes a Pause – Company in Talks With Quantum Startup

Nvidia's stock (NASDAQ: NVDA) has shown impressive gains over the past month, rising a staggering 39.72%, after a difficult start to 2025. Despite the recent rally, NVDA's share price is trading down 3.83% so far in the pre-market, and remains negative YTD, down 2.10%.

The company, a key beneficiary of the artificial intelligence trade is now looking to bolster their market position by investing in new technology, with talks of an investment in PsiQuantum, a promising quantum computing startup reported to be at an advanced stage.

The potential investment underscores Nvidia's strategic interest in expanding its influence within the rapidly evolving quantum computing sector, having hosted it's first Quantum Day at GTC 2025.

Quantum computing has garnered significant attention from tech giants due to its potential to solve complex problems much faster than classical computers. PsiQuantum, founded by a group of scientists with deep expertise in quantum physics, aims to build a quantum computer using silicon photonics technology. This distinctive approach sets it apart from other efforts in the field and reportedly offers scalability advantages.

Nvidia's interest in PsiQuantum aligns with its broader ambition to stay at the forefront of technological innovation. The company, which has a strong foothold in the artificial intelligence and machine learning domains, sees quantum computing as a complementary technology. By potentially investing in PsiQuantum, Nvidia positions itself to leverage new advancements and integrate quantum solutions in enhancing its processing capabilities and AI offerings.

Despite Nvidia's highs and lows, analysts still maintain a positive consensus on the stock. In recent updates, BofA have raised the firm's price target from $150 to $160, signalling a confident sentiment on the share price, whilst also keeping a “Buy” rating in place. UBS, also share the same confidence, with a Buy rating held in place despite lowering their price target from $180 to $175.

While the details of the potential investment in PsiQuantum are still being finalized, the industry expects such a partnership to accelerate developments in quantum computing. This move is also indicative of an increasing trend among major technology companies like Nvidia to diversify their portfolios by investing in emergent technologies with transformative potential.

As the talks continue, the sector will closely watch for official announcements from Nvidia and PsiQuantum regarding any agreements.