Nvidia (NVDA) Stock: Venture Arm Backs French Quantum Startup Alice & Bob

TLDR

• Nvidia’s venture arm, NVentures, has invested in French quantum computing startup Alice & Bob, bringing its Series B round to €100 million.
• Alice & Bob develops fault-tolerant quantum computers using “cat qubit” technology, which aims to reduce errors in quantum systems.
• Nvidia and Alice & Bob have been collaborating since 2024 on tools including CUDA-Q, cuQuantum, and NVQLink.
• The investment follows the Trump administration’s announcement of $2 billion in equity stakes across nine quantum computing companies.
• Wall Street holds a Strong Buy consensus on NVDA, with an average 12-month price target of $299.97 — implying roughly 36.6% upside from current levels.

Nvidia (NVDA) closed most recently with analysts pricing a 12-month target of $299.97, implying 36.6% upside. The company is now making moves that go well beyond its GPU and AI core business.

NVIDIA Corporation, NVDA

NVentures, Nvidia’s corporate venture capital arm, has invested in Alice & Bob, a French startup building fault-tolerant quantum computers. The deal closes out a €100 million Series B round for the Paris-based company. Nvidia did not disclose how much it put in.

Alice & Bob’s approach centers on “cat qubit” technology — a method designed to reduce the error rates that have long been quantum computing’s biggest problem. It’s a hardware-and-software play aimed at making quantum systems actually usable at scale.

This isn’t a new relationship. Nvidia and Alice & Bob have been working together since 2024. That collaboration has spanned Nvidia’s CUDA-Q platform, its cuQuantum library, Alice & Bob’s open-source Dynamiqs simulation tool, and the NVQLink interconnect framework.

Alice & Bob CEO Théau Peronnin said the investment reflects a shared view that future quantum systems will need to combine quantum and classical computing. In other words, Nvidia’s chips stay in the picture even as quantum hardware matures.

Trump’s $2 Billion Quantum Push

The timing isn’t random. The Trump administration recently announced plans to take $2 billion in equity stakes across nine quantum computing companies. Commerce Secretary Howard Lutnick framed it as a push to build out the domestic quantum supply chain and stay ahead of China in advanced tech.

Nvidia’s move into Alice & Bob fits neatly alongside that policy backdrop — though the investment is driven by its own strategic logic rather than government coordination.

What This Means for Nvidia Investors

For investors watching near-term numbers, this won’t move the needle on earnings. Quantum computing remains years away from commercial scale. But Nvidia is clearly positioning itself as infrastructure for whatever form that next computing wave takes.

The company already sits at the center of AI data center buildout. The Alice & Bob bet suggests it wants a similar position in quantum — supplying the classical compute layer that quantum hardware will depend on.

Wall Street remains firmly behind the stock. Of 42 analyst ratings issued in the past three months, 40 are Buys, with one Hold and one Sell. The average 12-month price target sits at $299.97.

Alice & Bob said it will use the Series B funding to continue developing its fault-tolerant quantum systems and expand its engineering team.

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