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Semiconductor behemoth NVIDIA Corporation NVDA and quantum computing company IonQ, Inc. IONQ offer valuable contributions to the artificial intelligence (AI) field, making them appealing to investors.
Shares of NVIDIA surged 26.3% over the past year as its highly regarded graphic processing units (GPUs) became indispensable for AI applications. Shares of IonQ also soared 89.5% in the past year as quantum computers promise to solve complex glitches beyond the competencies of traditional computers.
This makes it worth asking which high-flying AI stock is a better buy now. Let’s explore –
Reasons to be Bullish on NVIDIA Stock
The growing demand for the Internet of Things and the increase in sales of portable electronics are expected to boost the GPU market worldwide, with its size expected to grow from $101.54 billion in 2025 to $1,414.39 billion by 2034, according to Precedence Research. Thus, NVIDIA’s market leadership in GPUs will drive the company’s future growth. NVIDIA’s market share in discrete GPUs is over 80%, per Mercury Research.
NVIDIA is also well-poised to take advantage of the significant data center investments by tech giants like Microsoft Corporation MSFT, Alphabet Inc. GOOGL and Meta Platforms, Inc. META. In its latest quarterly result that ended on Jan. 26, NVIDIA’s data center revenues climbed 93% to $35.6 billion. With data center spending projected to reach $2 trillion in the next five years, further growth is expected in its data center revenues.
DeepSeek’s threat, by the way, is exaggerated. Its low-cost large language model will sooner or later drive more use of computing power and benefit NVIDIA. The chipmaker, anyhow, has ample resources to make cost-effective products and enhance the AI ecosystem. Moreover, as the demand for AI data infrastructure grows, companies will turn to NVIDIA for processors. Needless to say, the demand for NVIDIA’s Blackwell AI processor exceeded Wall Street expectations and touched $11 billion in sales in the fourth quarter of fiscal 2025.
Reasons to be Bullish on IonQ Stock
IonQ’s quantum computing system aids Amazon.com, Inc. AMZN and Microsoft in providing AI researchers with access to quantum computing models. IonQ is well-poised to benefit from the growth in the quantum computing market, which is estimated to reach $2 trillion by 2035, per McKinsey.
IonQ also stands out in the quantum computing space due to its creation of linear chains of ions that can reach 100-plus qubits, resulting in a lesser number of errors compared to other quantum computers. No doubt, IonQ’s revenues in the fourth quarter jumped 92% to $11.7 million. Revenues are likely to improve further as quantum computing is a burgeoning field that is much needed in the life sciences, chemical and financial sectors.