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Nvidia Ceo S Remarks Impact Quantum Stock Prices

Bonisiwe Shabane
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nvidia ceo s remarks impact quantum stock prices

Quantum computing stocks dropped Wednesday after Nvidia CEO Jensen Huang declared that useful quantum computers are many years away. "If you said 15 years for very useful quantum computers, that would probably be on the early side," he said during Nvidia's analyst day. "If you said 30, it's probably on the late side. But if you picked 20, I think a whole bunch of us would believe it." Huang said he believes Nvidia will play a "very significant part" in creating the computers and helping the industry "get there as fast as possible." Stocks tied to quantum computing tumbled on the heels of the comments, with Rigetti Computing plunging 40%, while IonQ shed 37%.

D-Wave Quantum dropped more than 30%, while the Defiance Quantum & AI ETF fell 4%. Quantum Computing, which announced a stock offering to raise $100 million, sank 37%. "As valuations have become a bit lofty, we're not surprised by today's correction," said AXS Investments CEO Greg Bassuk, calling the reaction somewhat "overblown." An AI-generated image illustrates the typical "chandelier" design of a quantum computer. (bpawesome/Shutterstock) Nvidia (NVDA) Chief Executive Jensen Huang's controversial remarks about quantum computing reached Rigetti Computing CEO Subodh Kulkarni via text.

A frantic acquaintance in the investment community wanted to know, "What's going on? Why is Jensen so negative about quantum computing?" Gil Luria, an analyst with D.A. Davidson, had just given another quantum computing company, IonQ, a buy rating. He was… 12/29/2025 OpenAI news often drives many AI stocks up or down. Many tech companies have a stake in OpenAI's success or...

12/29/2025 OpenAI news often drives many AI stocks up or down.... Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Shares of quantum computing firms took a significant hit in aftermarket trading on Tuesday, following remarks from NVIDIA CEO Jensen Huang that cast doubt on the near-term viability of the technology. Companies like IONQ, D-Wave Quantum, QuantumSi, Quantum Computing Inc., and Rigetti Computing saw stock declines ranging from 3% to 15%. This downturn came on the heels of a broader sell-off in the tech sector, which has been under pressure in recent weeks. During an investor meeting, Huang made it clear that he views quantum computing as still being in its infancy, suggesting that it could take at least 20 years before the technology becomes genuinely useful.

His comments, made in response to a question from Evercore analyst Mark Lipacis, were striking. Huang noted that if one were to estimate a timeline for practical quantum computers, 15 years might be overly optimistic, while 30 years could be too conservative. “But if you picked 20, I think a whole bunch of us would believe it,” he stated, underscoring the uncertainty surrounding the timeline for quantum advancements. The skepticism from Huang is not without merit. Quantum computing, which leverages the principles of quantum mechanics to tackle complex computational problems, faces numerous physical challenges. The intricacies of manipulating quantum phenomena are daunting, and Huang emphasized that quantum technology cannot address every problem.

He pointed out that classical computing remains essential for error correction, a process that is vital for quantum systems to function effectively. This interdependence highlights a significant hurdle: quantum computing cannot yet operate independently of classical systems, limiting its immediate applicability. Despite Huang’s cautious outlook, advocates of quantum computing continue to champion its potential as a transformative force in the tech landscape. Recent announcements, such as Google’s claim of overcoming a pivotal challenge with a new quantum chip, have sparked excitement. However, even with such advancements, experts agree that practical implementation is still years away. The gap between theoretical breakthroughs and real-world applications remains a chasm that the industry must navigate.

The reaction of the market reflects a broader sentiment of uncertainty surrounding the future of quantum computing. Investors, already jittery from a tech sector slump, appear to be recalibrating their expectations based on Huang’s comments. The reality is that while quantum computing holds promise, the path to practical utility is fraught with challenges that are not easily surmountable. Nvidia CEO Jensen Huang's comments at CES in December, stating that 'very useful' quantum computers are likely 15 to 30 years away, have led to a significant drop in quantum computing stocks, which had... Companies like Rigetti Computing, IonQ, and Quantum Computing Inc. saw their share values plummet by over 40% after Huang's remarks, reflecting a broader market adjustment to the realities of quantum computing's timeline.

Despite the hype around quantum advancements, such as Google's December unveiling of a new quantum chip, Huang's statements underscore the long road ahead for quantum technology to become practically viable. Nvidia's role in the development of quantum technology remains significant, with Huang emphasizing the need for classical computers in quantum error correction, a niche Nvidia occupies. This market correction highlights a potential pivot towards AI stocks, as investors reassess quantum computing's near-term potential. Analyze and predict thedevelopment of events Get the latest news, exclusive insights, and curated content delivered straight to your inbox. The perfect gift for understanding news from all angles.

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