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Quantum Computing Stocks Sink As Nvidia Ceo Delivers A Reality Check

Bonisiwe Shabane
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quantum computing stocks sink as nvidia ceo delivers a reality check

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 "get there as fast as possible." Stocks tied to quantum computing tumbled on the heels of the comments, with Rigetti Computing plunging 40%, while IonQ shed 37%.

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." 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%. 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. It wasn't just the CES 2025 buzz that rattled quantum stocks this week — a dose of cold water came from none other than Nvidia Corp‘s CEO Jensen Huang. Speaking at Nvidia’s Analyst Day, Huang made it clear: “very useful” quantum computers are likely decades away.

In fact, he pegged the most optimistic timeline for a breakthrough in 15 to 20 years, with 30 years perhaps being more realistic. The comments have sent shockwaves through the quantum computing space, where stocks had been soaring on speculation about the technology’s potential. Shares of key players like IonQ Inc (NYSE:IONQ), Rigetti Computing Inc (NASDAQ:RGTI), and D-Wave Quantum Inc. (NYSE:QBTS) took a hit, plunging by as much as 40% in just a few days. While these stocks had been riding high on massive gains over the past year — with IonQ up a jaw-dropping 129% and Rigetti seeing an 828% surge — the CEO's reality check has sparked... Read Also: 3 Russell 2000 Tech Stocks That Skyrocketed 1,000% Or More In 2024: Analysts Say They’re Just Getting Started

Let’s dive into the numbers and technicals: Advertisement Disclosure: When you purchase through our sponsored links, we may earn a commission from our partners. By using this website you agree to our T&Cs. A 20-year timeline may be realistic for the widespread adoption of quantum computing technology, Jensen Huang said Shares of quantum computing stocks including Quantum Computing Inc. (NASDAQ:QUBT), D-Wave Quantum (NYSE:QBTS) and Rigetti Computing (NASDAQ:RGTI) crashed by more than 20% on Wednesday’s premarket hours after NVIDIA (NASDAQ:NVDA) CEO Jensen Huang predicted a prolonged timeline for the rollout of quantum computing technology.

During a question-and-answer session following NVIDIA’s analyst day, Huang specified his timeline for the widespread onset of quantum computing technology, arguing that 15 years “would probably be on the very early side”. “If you said 30, it’s probably on the late side,” Huang added. “If you picked 20, I think a whole bunch of us would believe it.”

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