University of Kwazulu-Natal

Quantum Computing Stocks Plummet Amid Nvidia S Ceo Concerns Over Long

Bonisiwe Shabane
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quantum computing stocks plummet amid nvidia s ceo concerns over long

The quantum computing sector faced a harsh reality check Wednesday as stocks tumbled sharply following sobering comments from Nvidia CEO Jensen Huang about the technology’s practical timeline. Leading companies in the space saw their shares plunge by more than 30% after Huang suggested that “very useful” quantum computers might still be decades away. Huang’s assessment at Nvidia’s analyst day placed the timeline for practical quantum computing applications between 15 and 30 years out, with 20 years as a consensus estimate. “If you kind of 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,” Huang stated during a Q&A session, adding that a 20-year timeline would align with many industry experts’ expectations. The market reaction was swift and severe.

Industry leaders saw their valuations collapse, with Quantum Computing Inc., D-Wave Quantum Inc., and Rigetti Computing Inc. all experiencing drops exceeding 30%. IonQ, another major player in the sector, fell approximately 29%. The sell-off extended globally, affecting Chinese quantum computing firms like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd.

The dramatic decline is particularly notable given the sector’s recent performance. Quantum Computing shares had skyrocketed over 1,800% in the past year, reaching $17.49 before the correction. Rigetti had surged more than 1,500% to $18.39, while D-Wave advanced nearly 1,000% to $9.55. IonQ, despite a relatively modest gain compared to its peers, had still climbed more than 300% to $49.59. This market correction highlights the growing tension between technological optimism and practical reality in emerging technologies. While quantum computing promises revolutionary advances in fields ranging from cryptography to drug discovery, Huang’s comments underscore the significant technical challenges that remain before these possibilities can be realized.

The quantum computing sector faced a setback following comments from Nvidia (Nasdaq: NVDA) CEO Jensen Huang, who suggested that the practical application of quantum computing might still be two decades away. This statement had a ripple effect across the stock market, leading to a sharp decline in the shares of several quantum computing companies. Rigetti Computing (Nasdaq: RGTI), D-Wave Quantum (Nasdaq: QBTS), and IonQ (NYSE: IONQ) saw their market value decrease by over $5 billion. Investors reacted swiftly to Huang’s forecast, reflecting concerns over the timeline for quantum technology’s commercial viability, contrasting with the optimistic projections surrounding Google’s recent advancements with Willow last month. The stock market witnessed notable fluctuations in several quantum computing stocks following recent developments. RGTI, for instance, experienced a dramatic drop, opening at $12.65 and falling to a current price of $9.355, with a day low of $9.00.

This decline reflects investor apprehension following Nvidia’s comments. Similarly, IONQ saw its stock price decrease significantly, from a previous close of $49.59 to $26.75, with the day’s trading range between $26.14 and $39.00. The volatility in these stocks underscores the market’s sensitivity to industry forecasts and technological advancements. Despite the quantum computing sector turbulence, Google’s parent Alphabhet’s stock (Nasdaq: GOOG) has shown relative stability. Opening at $192.585, the current price at the time of writing stands at $194.19, with a trading range for the day between $192.38 and $196.29. Google’s market capitalization remains robust at $2.38 trillion, and analysts maintain a positive outlook with a “Buy” recommendation.

The company’s recent quantum chip announcement has captured the tech world’s imagination and reinforced investor confidence in its long-term potential. As Google continues to push the boundaries of innovation, its stock performance reflects a steady trajectory amidst a fluctuating market landscape. Nvidia CEO Jensen Huang speaks during the launch of the supercomputer Gefion at Vilhelm Lauritzen Terminal in Kastrup, Denmark, Oct. 23, 2024. 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." Stream NBC 5 for free, 24/7, wherever you are. Huang said he believes Nvidia will play a "very significant part" in creating the computers and helping the industry "get there as fast as possible." 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%.

Quantum computing stocks IonQ (IONQ), Rigetti Computing (RGTI), D-Wave Quantum (QBTS) and Quantum Computing (QUBT) plunged Wednesday after Nvidia (NVDA) CEO Jensen Huang said that the technology won't be "very useful" for 15-30 years. "If you kind of said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it's probably… 12/31/2025 Axsome's market cap has grown to $9.1 billion. 12/31/2025 Axsome's market cap has grown to $9.1 billion. Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20!

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The quantum computing sector faced a harsh reality check Wednesday as stocks tumbled sharply following sobering comments from Nvidia CEO Jensen Huang about the technology’s practical timeline. Leading companies in the space saw their shares plunge by more than 30% after Huang suggested that “very useful” quantum computers might still be decades away. Huang’s assessment at Nvidia’s analyst day plac...

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