Earlier today, chipmaker Nvidia (NVDA) announced that it is teaming up with Google Quantum AI (GOOGL) in order to improve the design of quantum computers by using Nvidia’s CUDA-Q™ platform. By running simulations on Nvidia’s Eos supercomputer, Google is attempting to tackle a key problem in quantum computing – “noise,” which limits how many calculations these systems can handle before they fail.
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Using 1,024 Nvidia H100 GPUs, Google is performing some of the fastest and most detailed simulations ever. In fact, simulations that used to take a week can now be done in just minutes, which makes the process faster and more affordable. In addition, by better understanding how qubits interact with their environment, researchers can design better quantum processors capable of handling real-world tasks.
Nvidia plans to make the tools used in these simulations available through the CUDA-Q platform in order to help engineers scale their quantum hardware faster. Indeed, Nvidia’s Tim Costa, who is the company’s director of quantum and HPC, said this collaboration shows how AI supercomputing can speed up quantum computing progress.
Blackwell Chips Are Overheating
However, despite this interesting news, shares of Nvidia fell in today’s trading. This is likely due to recent news stating that Blackwell chips are overheating in server racks, which is causing customers to worry. This is because excessive heat can cause the chips to run inefficiently or, worse, become damaged. This is also leading to investor worry because it could further delay the deployment of these chips, which are one of the company’s main growth drivers.
Is NVDA Stock a Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NVDA stock based on 39 Buys, three Holds, and zero Sells assigned in the past three months, as indicated by the graphic below. After a 178% rally in its share price over the past year, the average NVDA price target of $164.29 per share implies more than 17% upside potential.