Quantum computing stocks declined on Wednesday, following Nvidia CEO Jensen Huang’s statement that practical quantum computers are still several years off.
If you predicted that truly valuable quantum computers would arrive in 15 years, that would likely be a bit overly optimistic,” he said during Nvidia’s analyst day. “If you said 30 years, that would probably be overly pessimistic. But if you guessed 20 years, I think many of us would agree it’s a reasonable estimate.
Huang said he believes that Nvidia will be “very significant” in developing these computers, and will help the industry achieve its goals as quickly as possible.
Stocks related to quantum computing declined sharply following the comments, with Rigetti Computing plummeting 40%, and IonQ falling by 37%. D-Wave Quantum also dropped more than 30%, and the Defiance Quantum & AI ETF declined 4%. The stock Quantum Computing, which announced a $100 million stock offering, sank 37%.
We’re not shocked by today’s market correction, considering current valuations have become somewhat inflated,” said AXS Investments CEO Greg Bassuk, describing the reaction as a bit “overreactive.
“There’s a general understanding that the widespread adoption of quantum computing is still a ways off, so today’s negative stories aren’t particularly newsworthy,” he explained.
The quantum computing sector gained momentum in late 2024 as the unveiling of Google’s new Willow chip generated immense excitement. The chip reportedly surpassed its 2019 counterpart in error reduction, a significant achievement in the field. Investors believed that quantum computing would be the next major technology trend, building on the success of recent advancements in AI, specifically those driven by the emergence of ChatGPT.
The enthusiasm led to a surge in year-end stock prices, with Rigetti and D-Wave seeing their shares rise by 1,449% and 854%, respectively.
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