University of Kwazulu-Natal

Quantum Computing Stock Bubble Bursts After Nvidia Ceo Warning Msn

Bonisiwe Shabane
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quantum computing stock bubble bursts after nvidia ceo warning msn

A handful of quantum computing stocks have skyrocketed as some paint the technology as the next big technological innovation, but Nvidia CEO Jensen Huang warned analysts that any practical applications are still many years... Huang said Nvidia is not worried about quantum computing and added that practical applications for the nascent but powerful computers are at least 15 years away or more. “And so 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,” Huang told analysts, according to Axios. Quantum computers, which are powered by atom-sized “qubits” that operate via the rules of quantum mechanics, have been shown to be extremely powerful, but only in certain situations.

They are distinct from existing “classical” supercomputers, which operate more similarly to a basic laptop, albeit at a much higher level. Last month, Google researchers announced its homegrown Willow quantum-computing chip could solve a complex math problem that would’ve taken the most powerful existing supercomputers 10 septillion years, or more than the estimated age of... 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:

The quantum computing sector experienced a significant setback on Wednesday as Nvidia (NVDA) CEO Jensen Huang‘s remarks cast a long shadow over the timeline for the practical application of quantum computers. Huang’s cautious outlook during Nvidia’s analyst day, where he suggested that “very useful” quantum computers might be 15 to 30 years away from realization, led to a sharp decline in stock prices for leading... Quantum Computing Inc. (QUBT), IonQ Inc. (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) saw their shares plummet in premarket trading, with drops exceeding 24% for Quantum Computing, D-Wave, and Rigetti, and a 16% decrease for IonQ. This downturn was particularly stark given the recent surge in these stocks, fueled by optimism about quantum computing’s potential and amplified by Alphabet’s (GOOGL, GOOG) recent advancements in the field.

Over the past year, quantum computing stocks have seen dramatic gains, with Quantum Computing Inc. soaring by more than 1,940%, Rigetti climbing over 1,450%, D-Wave surging by more than 1,025%, and IonQ rising nearly 300%. Huang’s prediction not only affected U.S.-based companies but also had a ripple effect in Asia, notably impacting Chinese quantum computing firms like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd, whose shares also fell significantly. His statement provided a stark contrast to the bullish sentiment that had driven these stocks to new heights, suggesting that the technology’s journey to becoming a mainstream, practical tool might be much longer than...

This reaction in the stock market underscores the volatility and speculation inherent in investing in cutting-edge technologies like quantum computing. While the theoretical benefits of quantum computing, including solving complex problems in cryptography, drug discovery, and optimization, are well-documented, the practical implementation faces numerous challenges. These include not only the technical hurdles of maintaining quantum coherence and reducing error rates but also the significant investment in research and development required to make these systems viable for everyday use. Moreover, Huang’s comments reflect a broader industry acknowledgment that quantum computing, despite its promise, remains in the realm of advanced research rather than immediate commercial application. This perspective tempers expectations and might encourage a more realistic approach to investment and development in the sector, focusing on long-term growth and partnerships with classical computing technologies to bridge current gaps. Home | Updates | Quantum computing stocks drop sharply after Nvidia CEO’s warning

Over $8 billion in market value was lost as quantum stocks dropped following a warning from Nvidia’s CEO. Quantum computing stocks experienced a sharp decline on Wednesday following comments from Nvidia CEO Jensen Huang, who predicted practical quantum computers are still two decades away. His timeline dampened expectations in a sector already facing significant investment without broad applications. Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ saw their shares plummet over 40%, with more than $8 billion in combined market value lost. Investment chief Ivana Delevska of Spear Invest, which holds Rigetti and IonQ shares, supported Huang’s prediction, noting it took Nvidia a similar period to develop accelerated computing. The sector had previously surged due to a technological breakthrough at Google, with stocks rising at least threefold last year.

Despite the optimism, revenue generation remains minimal, with IonQ valued at over $10 billion but expected to generate just $41.6 million in 2024 revenue.

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