Nvidia S Ceo Pumped Quantum Computing But It S A Stock To Avoid

Bonisiwe Shabane

-Jan 2, 2026, 5:48 AM

nvidia s ceo pumped quantum computing but it s a stock to avoid

Nvidia is entering into a non-exclusive licensing agreement for Groq’s AI inference technology. Nvidia's reportedly paying $20 billion for this deal, about three times Groq's most recent valuation. Groq founder and CEO Jonathan Ross -- who will join Nvidia along with other Groq personnel -- is widely considered the creator of Google’s TPU. On Friday, artificial intelligence (AI) chip start-up Groq announced via a very brief press release that it "has entered into a non-exclusive licensing agreement with Nvidia (NASDAQ: NVDA) for Groq's inference technology." The deal also includes Jonathan Ross, Groq's founder and CEO, Sunny Madra, Groq's president, and other members of the Groq team joining Nvidia to "help advance and scale the licensed technology." We’re in for one incredible ride in 2026.

After an incredibly busy 2025, let’s take a look at how Jeff’s predictions for this year have panned out… Today’s issue is a refresher, something to reflect on before we dive into what’s in store for us in... We’re in for one incredible ride in 2026. After an incredibly busy 2025, let’s take a look at how Jeff’s predictions for this year have panned out… 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! Nvidia’s (NASDAQ:NVDA) venture capital arm, NVentures, recently joined a $600 million funding round for Quantinuum, a quantum computing firm majority-owned by Honeywell (NYSE:HON), valuing it at an impressive $10 billion. This investment doubles Quantinuum’s valuation from $5 billion in January 2024, reflecting surging investor confidence in quantum technology’s potential. Alongside Nvidia, major players like JPMorgan Chase (NYSE:JPM), Mitsui, Amgen (NASDAQ:AMGN), and Quanta Computer also participated, underscoring the growing commercial promise of quantum computing.

Nvidia’s CEO, Jensen Huang, has shifted his outlook, declaring quantum computing at an “inflection point” for practical applications, a stark contrast to his earlier 15- to 20-year timeline. This strategic move positions Nvidia to integrate quantum systems with its AI-driven GPU platforms, hedging against future disruptions. With quantum investment soaring — $1.25 billion in Q1 2025 alone — are quantum computing stocks like Rigetti Computing (NASDAQ:RGTI), IonQ (NYSE:IONQ), and D-Wave Quantum (NASDAQ:QBTS) primed for a resurgence? Rigetti Computing is a pioneer in hybrid quantum-classical computing, and has been making strides with its 84-qubit Ankaa-2 system, boasting a 98% median gate fidelity. The company’s focus on integrating quantum processors with cloud-based classical computing has attracted partnerships with industry giants like Nvidia, with whom it collaborates to enhance GPU-accelerated quantum simulations. Rigetti’s recent contract with the Department of Energy and a partnership with Riverlane for error correction signal strong institutional backing.

However, RGTI’s stock has been volatile, trading at around $14.60 per share this morning, down 31% from its all-time high in January. Quantum Stock Collapse: Quantum Computing Inc. (QUBT) fell 38%, with Rigetti (RGTI), D-Wave (QBTS), and IonQ (IONQ) also suffering sharp post-CES losses. Jensen Huang's Sobering Reality: Nvidia's CEO emphasized that quantum computing remains "decades away from practical implementation," redirecting attention to AI-accelerated classical systems. Financial Fragility Exposed: Revenue growth in the quantum sector remains incremental, with companies like IonQ showing promise, but most still unprofitable and reliant on speculative enthusiasm. Investor Sentiment Recalibrated: Nvidia's critique sets a clearer benchmark for assessing quantum computing's true commercial viability, driving a market correction in overvalued stocks.

Future Path to Watch: Long-term potential in hybrid quantum-classical systems and scalable quantum solutions still exists, but disciplined evaluation of fundamentals is now critical. Nvidia (NVDA) chief executive Jensen Huang doesn’t think useful quantum computers will be here anytime soon — and stocks are not reacting well to it. Quantum computing stocks such as IonQ (IONQ) and Rigetti Computing (RGTI) fell by more than 40% Wednesday morning after Huang’s comments during Nvidia’s financial analyst day at the Consumer Electronics Show (CES). IonQ’s shares were down by about 45%, while Rigetti’s shares fell by more than 48% mid-morning. Quantum Computing (QUBT), which announced a stock offering earlier this week to raise $100 million, saw its shares fall by about 49%. D-Wave Quantum (QBTS), meanwhile, saw shares fall by around 47%.

“If you said 15 years for very useful quantum computers, that would probably be on the early side,” Huang said. “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.” The Nvidia chief said he thinks the AI chipmaker will play “a significant part” in the development of quantum computers, and push it toward getting “there as fast as possible.”

Nvidia S Ceo Pumped Quantum Computing But It S A Stock To Avoid

People Also Search

Nvidia Is Entering Into A Non-exclusive Licensing Agreement For Groq’s

After An Incredibly Busy 2025, Let’s Take A Look At

Nvidia (NVDA) Chief Executive Jensen Huang's Controversial Remarks About Quantum

Many Tech Companies Have A Stake In OpenAI's Success Or...

Nvidia’s CEO, Jensen Huang, Has Shifted His Outlook, Declaring Quantum