University of Kwazulu-Natal

Quantum Computing Stocks Drop Sharply After Nvidia Ceo S Warning

Bonisiwe Shabane
-
quantum computing stocks drop sharply after nvidia ceo s warning

Several stocks across the quantum computing industry, including Rigetti Computing (RGTI), D-Wave Quantum (QBTS), IonQ (IONQ), and Quantum Computing (QUBT), fell sharply Wednesday following comments from Nvidia (NVDA) CEO Jensen Huang about the technology. Huang said at an analyst event Tuesday that "very useful quantum computers," which could make a number of computing tasks more efficient, are likely 15 to 30 years away. "If you kind of said 15 years for very useful quantum computers, that would probably be on the early side," Huang said. "If you said, you know, 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it." Huang also said Nvidia is an ideal partner for quantum computing companies because "it turns out that you need a classical computer to do error correction with the quantum computer, and that classical computer...

D-Wave Quantum was down 33% Wednesday afternoon, while Rigetti, IonQ, and Quantum all declined around 40%. The Defiance Quantum (QTUM) exchange-traded fund (ETF), made up of the listed companies along with other chip and tech companies like Nvidia, was down 4.5%. 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. 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. Quantum Stocks Drop Globally as Nvidia... Nvidia CEO Jensen Huang’s remark that useful quantum computers are still years away caused quantum stocks to drop on January 8, 2024. According to CNBC, Jensen outlined the realities in the quantum computing sector during a Q&A session with analysts at the Consumer Electronics Show (CES) event in Las Vegas.

Huang expressed confidence that Nvidia will play a significant role in developing quantum computers and assisting the industry to grow faster. This comment had a ripple effect on leading quantum computing stocks. Rigetti Computing stocks dropped by 40% while those of D-Wave Quantum and Arqit Quantum dipped by more than 38% each. IonQ share prices dropped by about 32% while those of AI ETF and Defiance Quantum lost 5% of their value. Shares of Quantum Computing also plunged by 39%. “If you said 15 years for very useful quantum computers, that would probably be on the early side.

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.

People Also Search

Several Stocks Across The Quantum Computing Industry, Including Rigetti Computing

Several stocks across the quantum computing industry, including Rigetti Computing (RGTI), D-Wave Quantum (QBTS), IonQ (IONQ), and Quantum Computing (QUBT), fell sharply Wednesday following comments from Nvidia (NVDA) CEO Jensen Huang about the technology. Huang said at an analyst event Tuesday that "very useful quantum computers," which could make a number of computing tasks more efficient, are li...

D-Wave Quantum Was Down 33% Wednesday Afternoon, While Rigetti, IonQ,

D-Wave Quantum was down 33% Wednesday afternoon, while Rigetti, IonQ, and Quantum all declined around 40%. The Defiance Quantum (QTUM) exchange-traded fund (ETF), made up of the listed companies along with other chip and tech companies like Nvidia, was down 4.5%. Home | Updates | Quantum computing stocks drop sharply after Nvidia CEO’s warning Over $8 billion in market value was lost as quantum st...

Rigetti Computing, D-Wave Quantum, Quantum Computing, And IonQ Saw Their

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 ...

Quantum Computing Inc. (QUBT), IonQ Inc. (IONQ), Rigetti Computing (RGTI),

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 Alpha...

Huang’s Prediction Not Only Affected U.S.-based Companies But Also Had

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 be...