Is Honeywell a quantum-computing stock now? There's a new link to Nvidia.

By Emily Bary

Nvidia's VC arm was among the participants in a recently announced capital raise for Quantinuum, which is Honeywell's quantum-computing business

Honeywell announced a new capital raise for its Quantinuum quantum business, with JPMorgan and an Nvidia venture arm among the investors.

Honeywell International Inc. could get some more street credit after Nvidia Corp.'s venture-capital arm joined a group investing in the industrial giant's quantum-computing business.

Of course, Honeywell (HON) is no slouch, with a $135 billion market value and about $41 billion in overall revenue expected this year. Quantum computing is a relative blip on the radar for the company - the latest capital raise assigns Honeywell's Quantinuum business a $10 billion pre-money equity valuation and analysts don't see meaningful revenue contributions yet - but it's nonetheless one that gives the company exposure to a buzzy corner of the technology world.

NVentures, Nvidia's (NVDA) VC arm, is one of a number of participants in the capital raise that was announced on Thursday morning. Others include Quanta Computer and existing shareholders JPMorgan Chase & Co. (JPM) and Amgen Inc. (AMGN).

Quantum investors may remember that Nvidia Chief Executive Jensen Huang sent quantum stocks tumbling earlier this year when he spoke about how long it would take for the technology to manifest, although he and Nvidia later took a more positive view on quantum's potential.

Honeywell said in a release that the Quantinuum business will work with Nvidia "as a founding collaborator on breakthroughs at the Nvidia Accelerated Quantum Research Center."

The business "continues to meet and exceed our stated objectives - strategically, technically and commercially," Chief Executive Vimal Kapur said in a release. He thinks Quantinuum will "continue to lead the quantum revolution and create long-term value for its investors and customers."

Quantum computing makes use of "qubits" to gain advantages over binary computations, though there are challenges to scaling the technology. Quantinuum in particular uses trapped ions to make qubits that can be more easily controlled, according to Morgan Stanley analysts.

See also: Cisco says it has a new chip that can make quantum computing useful more quickly

The $10 billion pre-money equity valuation puts Quantinuum in the range of some publicly traded quantum-computing plays that got hot last year but have seen their stock momentum cool in 2025. IonQ Inc. (IONQ) has a roughly $12 billion market capitalization, Rigetti Computing Inc. (RGTI) and D-Wave Quantum Inc. (QBTS) have approximately $5 billion valuations and Quantum Computing Inc. (QUBT) has a market cap just north of $2 billion.

While D-Wave's stock has risen 82% so far this year, the other three stocks have retreated on a year-to-date basis.

The investment isn't doing anything so far for Honeywell's stock, which is down fractionally in Thursday's premarket action.

Morgan Stanley analysts noted in a June report that Honeywell has more than a decade-long track record of investing in quantum, with Quantinuum the result of the merger between its Quantum Solutions business and Cambridge Quantum Computing.

The analysts estimated that the unit was still losing far more money than it was making - with perhaps a $454 million segment loss on about $24 million in revenue.

Still, they thought the business, which is headquartered in the United Kingdom, "has the potential to build a de facto standard software for quantum compute that is agnostic to the underlying architecture and hardware used." The analysts noted that Quantinuum had been focused on using quantum computing for things like making drug discovery more efficient and fueling better development of new chemicals, in addition to data-center work.

-Emily Bary

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09-04-25 0921ET