University of Kwazulu-Natal

Quantum Computing Stock Bubble Pops After Nvidia Ceo Warning

Bonisiwe Shabane
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quantum computing stock bubble pops after nvidia ceo warning

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: 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.” IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing have reached valuation levels well beyond those seen during prior stock market bubbles. Each of these companies has recently raised capital through a series of equity offerings and stock issuances. These moves could suggest that the valuation levels for these businesses are not only abnormally high, but unsustainable. Last summer, companies such as IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), and Quantum Computing (NASDAQ: QUBT) were unknown penny stocks. However, as quantum computing steadily made its way toward center stage in the artificial intelligence (AI) realm, each of these companies witnessed meteoric rises in their share prices.

Over the last 12 months, IonQ stock has blasted higher by 517%, while Rigetti, D-Wave, and Quantum Computing have experienced surges of at least 1,500% as of this writing (July 21). 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. Earlier this year, Nvidia CEO wasn’t so bullish on quantum computing. At the time, during an analyst event at CES, he stated that “very useful quantum computers” were likely 15 to 30 years away, suggesting that 20 years was a reasonable estimate.”

In fact, that very statement sent Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), IonQ (NYSE: IONQ), and Quantum Computing (NASDAQ: QUBT) spiraling lower. All as Nvidia CEO Jensen Huang becomes far more bullish about quantum computing — and expects they’ll start solving real-world problems in the coming years. “We are within reach” of being able to apply quantum computers “in areas that can solve some interesting problems in the coming years,” Huang added, as quoted by CNBC. “This is a really exciting time.” That shift comes as Nvidia itself has partnered with quantum computing companies, such as Honeywell-owned Quantinuum to build out a quantum research center. NVDA Quick QuoteNVDA PLTR Quick QuotePLTR COIN Quick QuoteCOIN HOOD Quick QuoteHOOD IONQ Quick QuoteIONQ QBTS Quick QuoteQBTS

"When I see a bubble forming, I rush in to buy, adding fuel to the fire."— George Soros Bubbles are not just market anomalies, they are often features of major eras of innovation and expansion. From railroads to dot-coms and digital assets, investors have repeatedly underestimated how far narrative-driven excess can go. Today, we are in the early innings of what may become the next great bubble, driven by a convergence of artificial intelligence, quantum computing, and crypto-financial systems. Each of these technologies is transformational on its own. Together, they are catalyzing a new wave of speculative enthusiasm, and importantly, real capital investment across both public and private markets.

The last couple of years, broad markets have performed very well led by a surge in thematic stocks tied to AI infrastructure and quantum computing, while tokenized financial rails have begun to proliferate more... Like in the late 1990s, the rally may seem unsustainable, and it likely will be, eventually. But history shows that there may be explosive gains in the years ahead for those who are well positioned. This article explores what a full-blown speculative peak could look like over the next couple of years, and how much upside may still lie ahead if the current bull run evolves into a true... We’ll examine lessons from past bubbles, outline the broader themes driving this one, and highlight several individual stocks that could become major winners along the way.

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