Quantum Computing Sector Bubble Bursts Nvidia Ceo S Warning Triggers

Bonisiwe Shabane

-Jan 2, 2026, 2:16 AM

quantum computing sector bubble bursts nvidia ceo s warning triggers

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... 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." Nvidia (NVDA) chief executive Jensen Huang doesn’t think useful quantum... 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... 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! Quantum computing stocks have experienced a significant pullback.

The catalyst was NVIDIA CEO Jensen Huang’s recent public statement: “Truly useful quantum computers may still be 15 to 30 years away.” This remark quickly triggered panic in the capital markets, causing the share... As the next-generation computing paradigm, quantum computing is seen as a potential solution to problems that traditional computers can’t tackle, such as materials simulation, complex optimization, and cryptography breaking. During the initial investment boom, companies like IonQ, Rigetti Computing, and Quantum Computing Inc. saw their stock prices surge in a short period—for example, Rigetti’s stock once soared over 1,800%. However, the reality is that these companies have yet to achieve mature revenue streams, widespread user adoption, or clear commercialization paths. As the article notes, “While quantum computing seems like something out of a sci-fi movie, its practical application still has a long way to go.” Many investors jumped in early based on high expectations,...

During a Q&A session with Wall Street analysts, Huang was asked about the development trajectory of quantum computers. He responded, “If we say there will be ‘very useful’ quantum computers in 15 years, that may be an optimistic estimate; if we say 30 years, that might be a pessimistic one.” The key signals from his comments include: Nisha Gopalan is a former Senior Overnight Assignment Editor for Investopedia News. She is an award-winning financial journalist who has worked in London, where she is currently based, and Hong Kong. She previously worked at The Wall Street Journal and Bloomberg.

Mustafa Yalcin / Anadolu via Getty Images Quantum computing shares are jumping in premarket trading Wednesday after Nvidia (NVDA) CEO Jensen Huang said that the industry is “reaching an inflection point." Huang's comments during his keynote speech at the chipmaker’s GTC Paris developer conference mark more optimistic take by the Nvidia CEO, who said early this year that quantum computing technology is 15 to 30... “Quantum computing is reaching an inflection point,” Huang said in the speech Wednesday. “We are within reach of being able to apply quantum computing, quantum classical computing, in areas that can solve some interesting problems in the coming years.” In the shadow of the AI boom, quantum computing stocks have surged into the spotlight, with companies like IonQ (IONQ), Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and Quantum Computing Inc.

(QUBT) seeing their share prices skyrocket. Some rose by over 3,000% in the past year. Investors are piling in, lured by visions of a technology that could revolutionize drug discovery, cryptography, and optimization problems beyond the reach of classical computers. Bulls argue we're still early in a world-changing paradigm shift, with quantum poised to unlock trillions in economic value. But here's the stark reality: these stocks are grotesquely overvalued, fueled by speculative frenzy rather than fundamentals. Many resemble borderline science projects, promising in theory but years, if not decades, from meaningful commercialization.

This isn't innovation. It's a classic bubble, and when it bursts, the fallout could be brutal. Let's start with the numbers, which paint a picture of absurdity. As of October 2025, IonQ boasts a market cap of around $23 billion on projected 2025 revenue of just $100 million, a price-to-sales ratio of 200x. Rigetti, with its Q2 revenue down 41% year-over-year to a paltry $1.8 million, commands a $13 billion valuation despite burning through cash and posting massive losses. D-Wave sits at $11 billion, while Quantum Computing Inc.

hovers around $4.5 billion, despite generating only $61,000 in Q2 revenue and no profits whatsoever. These aren't businesses. They're hype machines. Pure-play quantum firms like these trade at enterprise value-to-revenue multiples that make even the frothiest AI stocks look conservative, with valuations detached from any realistic path to profitability. The issue isn't the technology's potential. Quantum computing is sound science, leveraging qubits that can exist in multiple states simultaneously to perform calculations exponentially faster than classical bits.

The problem is timing and execution. These companies are still in the lab phase, with revenues trickling in from government grants, pilot projects, and cloud access deals rather than scalable products. IonQ, often touted as the sector's leader, reported just $20.7 million in Q2 revenue against $463 million in losses. Rigetti and D-Wave face similar cash burns, relying on dilution and hype to stay afloat. As one analyst put it, these are "glorified research projects" masquerading as investable opportunities. Quantum computing's promise is real, but commercialization remains a distant horizon.

Experts estimate a median timeline of 10-20 years for practical, large-scale applications, with pessimists arguing it may never fully materialize due to intractable challenges. Key barriers include error correction (qubits are notoriously unstable and prone to "decoherence"), scalability (building systems with thousands of reliable qubits), and extreme operational requirements like near-absolute-zero temperatures. While Google recently touted its Willow chip for solving a problem in minutes that would take classical supercomputers eons, this is a controlled demo, not a commercial breakthrough. IonQ's roadmap aims for 100 physical qubits by 2025 and 10,000 by 2027, but even optimists like Google's Hartmut Neven peg full commercial viability within five years at best, and that's for niche uses. In the meantime, classical computing, bolstered by AI accelerators like Nvidia's GPUs, continues to advance, solving many of the problems quantum promises to tackle at a fraction of the cost and complexity. Quantum's "supremacy" moments are impressive lab feats, but they don't translate to real-world revenue anytime soon.

As McKinsey notes, while quantum could add trillions to the economy by 2035, the path is fraught with delays, funding crunches, and technical misses. Betting on these stocks now is like investing in the internet in the 1980s. It's exciting, but way too early for most to profit. Wall Street just got hit by a quantum shockwave. On 12 June 2025, Quantum Computing Inc. Its biggest spike since December (QUBT) shocked the markets with a 25 percent stock jump.

The catalyst was none other than Jensen Huang, the visionary CEO of Nvidia who caused a stir at GTC Paris by announcing that quantum computing has reached a turning point. Just a few months ago, Huang predicted quantum's prime time was 15-30 years away. Now? He’s flipping through the script, saying real-world breakthroughs are closer than ever, and hybrid systems that blend quantum and classical computing are nearly ready to tackle the world's toughest problems. Quantum Computing Inc. has been making significant strides in advancing quantum technology.

In May 2025, the company completed its Quantum Photonic Chip Foundry in Tempe, Arizona, positioning itself as a leader in scalable quantum hardware development. This facility enables the production of photonic chips, which are crucial for the development of practical quantum computers. Additionally, Quantum Computing Inc. has been expanding its partnerships with government agencies and commercial enterprises, further solidifying its position in the quantum computing ecosystem. QUBT wasn’t alone in its surge. The ripple effect across the quantum tech space was immediate:

What a difference five months makes. Back in January, Nvidia (NVDA) CEO Jensen Huang told the crowd at CES 2025 that quantum computing was a technology that was decades away from being ready for practical use. It sent the entire sector crashing lower. Fast-forward to yesterday, and Huang seems to be singing a different tune. Speaking at Nvidia's Paris GTC conference, the CEO said "we are within reach" of applying quantum computers “in areas that can solve some interesting problems in the coming years." In particular, Huang said "there is an inflection point happening in quantum computing" with more logical qubits being created and over time they will be better, more robust, and of higher performance than what...

The endorsement sent several quantum computing stocks soaring, with Quantum Computing (QUBT) leading the way with a 25% gain for the day. Rigetti Computing (RGTI) was up 11% and Arqit Quantum (ARQQ) was 8% higher. The sector's response was uneven, however, as both D-Wave Quantum (QBTS) and IonQ (IONQ) fell on the day, down 2% and 0.1%, respectively. The explosive rise of artificial intelligence has fuelled a global investment frenzy, and the warnings about an overheated market are getting louder. Economists, central banks and major tech leaders have already voiced concerns about excessive valuations across the AI sector. Now a striking new claim has entered the debate.

Quantum Computing Sector Bubble Bursts Nvidia Ceo S Warning Triggers

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The Catalyst Was NVIDIA CEO Jensen Huang’s Recent Public Statement: