Nvidia S Quantum Outlook Crushes Ionq And Rigetti Computing A Deep Div

Bonisiwe Shabane

-Jan 2, 2026, 8:13 AM

nvidia s quantum outlook crushes ionq and rigetti computing a deep div

Daily stocks & crypto headlines, free to your inbox By continuing, I agree to the Market Data Terms of Service and Privacy Statement Quantum computing stocks experienced a significant market correction after Nvidia’s CEO, Jensen Huang, tempered expectations by suggesting that practical, “very useful” quantum computers might be 15 to 30 years away from realization. This statement led to a collective $8 billion market value loss for companies like Rigetti (RGTI), D-Wave Quantum (QBTS), Quantum Computing (QUBT), and IonQ (IONQ). This development stymied what had been a speculative bubble, fueled by last year’s excitement around Google’s quantum computing breakthrough. The search giant’s Willow chip demonstrated remarkable capabilities, solving in five minutes a problem that would take one of the world’s fastest supercomputers an astonishing septillion years.

Despite the potential in areas like national security and government contracts, the immediate revenue generation of these firms remains negligible, casting doubts on their investment value due to potential dilution risks. At the same time, the U.S. government is ramping up efforts, as per a Bloomberg report, to limit AI chip exports to nations such as China and Russia, seeking to preserve its technological advantage in an increasingly tense geopolitical environment. Expected to be unveiled this week, the new restrictions will implement a three-tier system: top-tier U.S. allies will have unrestricted access to U.S. chips; second-tier, adversaries will face a complete ban on semiconductor imports; and third-tier countries, comprising most of the world, will encounter limits on the total computing power they can acquire.

Nvidia (NVDA), a leader in AI hardware, has publicly criticized these measures, warning that they could hinder U.S. economic growth and threaten its technological leadership. Huang has articulated that while national security is paramount, a balanced approach is crucial to sustain U.S. competitiveness in the AI sector, highlighting the delicate balance between security and economic innovation. Despite these challenges, Nvidia is pressing forward. At CES 2025, CEO Jensen Huang unveiled the GB10 Grace Blackwell Superchip, delivering a petaflop of AI performance at FP4 precision — a bold step toward democratizing AI computing power.

This move aligns with Nvidia’s broader strategy to dominate AI while tapping into trillion-dollar markets like autonomous vehicles. Currently a $5 billion business for Nvidia, this sector is viewed as just the starting point. To solidify its position, Nvidia has announced new partnerships with major automakers, including Toyota, Aurora, and Continental, to develop next-generation autonomous vehicle fleets. Even more intriguing, the company’s vision extends beyond autonomous vehicles into gaming, robotics, and other sectors poised for AI-driven innovation. With its chips in high demand and a track record of groundbreaking advancements, Nvidia is tackling regulatory and market challenges head-on, solidifying its influence across the tech landscape through relentless innovation and expansion. Huang’s announcements and Nvidia’s strategic direction illustrate a company that is playing the long game in tech, focusing on transformative technologies that could redefine industries.

While the quantum computing sector faces a reality check, Nvidia’s approach to AI and its broader tech ecosystem underscores its commitment to shaping a future where technology not only advances but also navigates the... WallStreetPit does not provide investment advice. All rights reserved. Nvidia CEO Jensen Huang recently predicted it could take 15 to 30 years to bring “very useful quantum computers” to the market. He said those systems would require a million more quantum bits (qubits) than they have today. Huang’s cautious comments caused two of the market’s most popular quantum computing stocks, IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI), to plunge 39% and 45%, respectively, on Jan.

8. Let’s see why that happened — and if IonQ and Rigetti are still worth buying after their precipitous declines. Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » Traditional computers store their data in binary bits of zeros and ones.

Quantum processing units (QPUs) can store zeros and ones simultaneously in qubits, which enables them to process data much faster than traditional computers. But quantum computers are much larger and pricier than their binary counterparts, and they tend to produce more errors with their rapid fire calculations. That’s why they’re still mainly used by universities, research institutions, and government agencies for niche calculations instead of more practical applications for mainstream businesses. The past few years have seen the rise of the artificial-intelligence infrastructure engine. Companies such as NVIDIA NVDA, Microsoft MSFT, Amazon AMZN and Google have racked up massive gains as the world pours capital into generative AI, large language models (LLMs), cloud infrastructure, data-center growth, GPUs and... This surge has translated into astonishing performance for AI infrastructure.

For example, NVIDIA delivered a 114% year-over-year jump in full-year revenues last fiscal. However, while investor attention remains focused on this fast-growing technology segment, signs of growth moderation are prominent. In fiscal 2026, NVIDIA reported year-over-year revenue increases of 69% and 56% in the first and second quarters, respectively, still impressive, but notably slower than the explosive growth seen earlier in the cycle. At this stage, when AI infrastructure is becoming crowded and valuations are getting overly stretched, according to many market watchers, Quantum Computing is the next frontier to step in. In fact, many are of the belief that AI is merely the warm-up and quantum computing will be the real technological disruption that redefines computational capability and unlocks the next trillion-dollar wave. Here we have picked two pureplay quantum stocks consistently identified as leaders in the quantum computing space — IonQ IONQ and Rigetti RGTI.

Last month, Goldman Sachs cautioned that AI-focused stocks were trading at valuations driven more by future hopes than current profits, raising early bubble signs. According to a Bloomberg report, a Bank of America survey in October showed a shift in sentiment, with 54% of global fund managers now viewing AI as a bubble risk. The alarm grew louder when, around the same time, the Bank of England warned that AI valuations looked “stretched.” As per the report, too much of the market's value depends on a few AI... If investors become less confident about AI, those stocks could fall and drag the whole market down. Meanwhile, MIT research already suggested as many as 95% of generative-AI pilots weren’t yet generating returns, highlighting a widening gap between investment and real-world payoff (as published in a Forbes report). Rigetti Computing (RGTI), IonQ (IONQ), and other quantum computing stocks fell roughly 40% Wednesday after Nvidia (NVDA) CEO Jensen Huang told Wall Street analysts that “very useful quantum computers” are likely 20 years away.

Rigetti Computing stock was down 45% at market close while IonQ dropped 39%. Fellow stocks in the sector, D-Wave Quantum (QBTS) and Quantum Computing (QUBT), plummeted 36% and 43%, respectively. Responding to a question from Evercore ISI analyst Mark Lipacis during a conversation with analysts at the tech industry’s annual CES trade show in Las Vegas, Huang said, “Quantum computing can't solve every problem.” “If you kind of said 15 years for very useful quantum computers, that'd probably be on the early side. If you said 30 is probably on the late side. But if you picked 20, I think a whole bunch of us would believe it,” he said.

Quantum computing stocks enjoyed a massive rally in late November and throughout December as growing interest and technological advancements fueled bets that the technology would take off sooner rather than later. Nvidia CEO Jensen Huang recently predicted it could take 15 to 30 years to bring "very useful quantum computers" to the market. He said those systems would require a million more quantum bits (qubits) than they have today. Huang's cautious comments caused two of the market's most popular quantum computing stocks, IonQ (NYSE: IONQ) and Rigetti Computing (NASDAQ: RGTI), to plunge 39% and 45%, respectively, on Jan. 8. Let's see why that happened -- and if IonQ and Rigetti are still worth buying after their precipitous declines.

Start Your Mornings Smarter! Wake up with Breakfast news in your inbox every market day. Sign Up For Free » Traditional computers store their data in binary bits of zeros and ones. Quantum processing units (QPUs) can store zeros and ones simultaneously in qubits, which enables them to process data much faster than traditional computers. But quantum computers are much larger and pricier than their binary counterparts, and they tend to produce more errors with their rapid fire calculations.

That's why they're still mainly used by universities, research institutions, and government agencies for niche calculations instead of more practical applications for mainstream businesses.

Nvidia S Quantum Outlook Crushes Ionq And Rigetti Computing A Deep Div

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