Two high-flying artificial intelligence (AI) stocks that have been front of mind for investors recently are IonQ(NYSE: IONQ) and Nvidia(NASDAQ: NVDA). Semiconductor company Nvidia has soared 53% over the past year as companies have clamored for its processors amid rising AI demand. Meanwhile, the share price of quantum computing company IonQ spiked about 125% over the same period, with investors hopeful that IonQ's tech will advance AI capabilities.
AI could be worth an estimated $15.7 trillion by 2030, according to PwC, and with these companies at the forefront of these massive trends, it's worth asking which is the better AI stock right now. Here's the case for each.
Image source: Getty Images.
Nvidia's AI opportunity is front and center
Nvidia needs no introduction among tech investors, but if you're still trying to figure out why this company is getting so much airtime in the AI conversation, consider these facts:
Nvidia's AI accelerators have an estimated 70% to 95% of the artificial intelligence chip market.
The company's data center revenue jumped 93% to $35.6 billion in the fourth quarter of fiscal year 2025, which ended Jan. 26.
Data center spending could increase to $2 trillion over the next five years.
Those are all compelling reasons to own Nvidia stock because they prove just how much the company is already benefiting from AI's rise and its potential to keep growing in the years ahead. For example, Nvidia's AI processor market share means that competitors like Advanced Micro Devices have a slim chance of encroaching on its chip territory any time soon.
Similarly, with tech giants committing hundreds of billions of dollars to data center spending, Nvidia is likely one of the biggest winners. Meta Platforms, Alphabet, Microsoft, and others have all said they'll spend hundreds of billions this year alone, with the goal of building out data center infrastructure that can keep up with the demands of AI.
Some people think DeepSeek's recent revelation that some AI start-ups can train AI models with fewer and less powerful AI processors spells doom for Nvidia. I disagree. Considering that DeepSeek's AI likely learned from more advanced AI models (known as distillation), it shows that large tech companies can't afford to fall behind in data center spending as smaller rivals nip at their heels.
The fact remains that as AI data infrastructure demand increases, companies will look to Nvidia to fill their processor needs. The company recently debuted a new Blackwell AI processor to keep pace with demand, and management said on the latest earnings call that sales have "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 nothing lasts forever, it's premature to think it's done benefiting from it.
IonQ is betting on a massive quantum computing future
While quantum computing and AI aren't the same thing, there's often overlap between the two. For example, IonQ's quantum computing system is used by Microsoft and Amazon to give AI researchers access to quantum computing models.
There are some compelling 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 jumped 92% to $11.7 million.
McKinsey estimates quantum computing could be worth $2 trillion by 2035.
IonQ says that its quantum computers can create linear chains of ions with the potential to reach 100-plus qubits (a quantum computer's unit of processing), and that it could have far fewer errors than other quantum computers.
The long-term prospects with IonQ comes from the potential that quantum computing could be a transformational technology that advances science, like drug discovery, and creating new AI models. While speculative, big tech companies are pursuing quantum computing, including Alphabet and Microsoft, with the latter recently releasing its own quantum computing processor.
Looking at the big picture, quantum computing has massive potential to disrupt traditional computing in the coming decades. But its practical applications are limited right now. Nvidia CEO Jensen Huang threw cold water on the industry recently when he said that their practical applications are still decades away.
Nvidia is the better AI stock
IonQ falls short in this matchup because its opportunities are too speculative, and its stock is too expensive. The company's shares have a price-to-sales ratio of 167, which is very expensive by any measure. And while IonQ's revenue is growing, it's still unprofitable, with a net loss of $202 million in the fourth quarter.
While quantum computing could become the next biggest tech trend, it's still very uncertain if IonQ's business will significantly benefit from it and how long that might take. Meanwhile, its shares are priced for perfection.
In contrast, Nvidia's shares are relatively well priced, with a forward price-to-earnings multiple of 30. The company is very profitable, with generally accepted accounting principles (GAAP) earnings per share of $0.89 in the most recent quarter -- an 82% increase from the year-ago quarter.
For all these reasons, Nvidia looks like the better AI stock by far right now.
Don’t miss this second chance at a potentially lucrative opportunity
Ever feel like you missed the boat in buying the most successful stocks? Then you’ll want to hear this.
On rare occasions, our expert team of analysts issues a “Double Down” stock recommendation for companies that they think are about to pop. If you’re worried you’ve already missed your chance to invest, now is the best time to buy before it’s too late. And the numbers speak for themselves:
Nvidia:if you invested $1,000 when we doubled down in 2009,you’d have $323,920!*
Apple: if you invested $1,000 when we doubled down in 2008, you’d have $45,851!*
Netflix: if you invested $1,000 when we doubled down in 2004, you’d have $528,808!*
Right now, we’re issuing “Double Down” alerts for three incredible companies, and there may not be another chance like this anytime soon.
Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
