University of Kwazulu-Natal

Quantum Stocks Plummet After Nvidia S Ceo S Comments Extinguish Rally

Bonisiwe Shabane
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quantum stocks plummet after nvidia s ceo s comments extinguish rally

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. 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." The Company is a publisher.

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Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, The Canberra Times, and... Read more Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists.

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You Understand And Agree That No Content Published On The

You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Content on the Site is provided for information purposes only, and none of the information contained on the Site constitutes an offer, solicita...