University of Kwazulu-Natal

Shares In Quantum Computing Plummet As Nvidia Ceo Jensen Huang Predict

Bonisiwe Shabane
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shares in quantum computing plummet as nvidia ceo jensen huang predict

CES The quantum computing industry seems to be just as delicate as the qubits it relies on. Shares in some publicly traded QC companies saw steep declines today, following Nvidia CEO Jensen Huang's CES rather reasonable remark that practical quantum systems may still be 20 years away. Speaking at a financial analyst Q&A session at the electronics super-conference yesterday, Huang said (39:30 into the video) the world is probably five to six orders of magnitude away from the number of qubits... "If you said 15 years for very useful quantum computers that would probably be on the early side," Huang predicted. "If you said 30, it's probably on the late side. If you picked 20, I think a whole bunch of us would believe it."

Yes, keep buying those Nvidia GPUs for another couple of decades, please. Huang's grim but frankly realistic outlook on the future of quantum computing added to the sector's woes, with some companies seeing stock prices plummeting when markets opened the next day. D-Wave, Quantum Computing Inc, Rigetti, and IONQ are all down nearly 50 percent as of writing. The only leading publicly-traded quantum computing firm to escape a 50-percent decline in value is UK-based Arqit Quantum, but it's still down by around 30 percent. Quantum computing stocks, including those of companies like Rigetti, IonQ, and D-Wave Quantum, experienced significant declines after Nvidia's CEO, Jensen Huang, made remarks suggesting that the widespread application of quantum computing technology may still... This statement caused apprehension among investors who had been betting on a quicker revolution in computational advancements.

The financial landscape for quantum computing companies took a hit when Jensen Huang, a respected voice in the technology industry, expressed his views on the timeline for quantum computing becoming a mainstream reality. Stocks of key players such as Rigetti Computing, IonQ, and D-Wave Quantum saw substantial losses following his comments. Investors reacted swiftly to what they perceived as a setback in their expectations for rapid growth and returns from this emerging sector. Huang's statement emphasized the challenges that still lie ahead for quantum computers to become practical tools for solving complex problems at scale. Despite ongoing advancements and investments in quantum technology, his view underscored the technological hurdles that remain significant. This assertion, coming from the leader of Nvidia—a company at the forefront of computational technologies—reverberated through the market with tangible effects.

Quantum computing is heralded as a transformative force that promises to dramatically increase computational power, tackling problems beyond the reach of current classical computers. It operates using principles of quantum mechanics, harnessing phenomena such as superposition and entanglement to process information in fundamentally new ways. However, developing functional and reliable quantum computers presents formidable challenges. Issues such as quantum decoherence, error rates, and scalability are significant hurdles that researchers continue to grapple with. The construction of stable qubits—the fundamental units of quantum information—remains technically complex and costly. A handful of quantum computing stocks have skyrocketed as some paint the technology as the next big technological innovation, but Nvidia CEO Jensen Huang warned analysts that any practical applications are still many years...

Huang said Nvidia is not worried about quantum computing and added that practical applications for the nascent but powerful computers are at least 15 years away or more. “And so if you kind of said 15 years for very useful quantum computers, that’d probably be on the early side. If you said 30 is probably on the late side. But if you picked 20, I think a whole bunch of us would believe it,” Huang told analysts, according to Axios. Quantum computers, which are powered by atom-sized “qubits” that operate via the rules of quantum mechanics, have been shown to be extremely powerful, but only in certain situations. They are distinct from existing “classical” supercomputers, which operate more similarly to a basic laptop, albeit at a much higher level.

Last month, Google researchers announced its homegrown Willow quantum-computing chip could solve a complex math problem that would’ve taken the most powerful existing supercomputers 10 septillion years, or more than the estimated age of... Quantum-computing stocks suffered a dramatic sell-off following remarks by Nvidia CEO Jensen Huang, who suggested that practical applications of the technology remain decades away. Huang estimated that “very useful” quantum computers could become a reality within 20 years, a timeline that appears to have rattled investors. Shares of Rigetti Computing tumbled 45% yesterday, while other quantum-focused companies, including D-Wave Quantum, Quantum Computing Inc., and IonQ, saw their stock prices decline by approximately 40%. Huang stated that Nvidia is positioned to play a “very significant part” in the evolution of quantum computing, highlighting that most quantum-computing firms worldwide currently collaborate with Nvidia. However, the steep market downturn indicates that many investors are questioning the near-term potential of the sector.

Quantum computing has been a hot topic, particularly after Google’s introduction of its quantum chip, Willow, which reportedly solved a complex problem in under five minutes—a task that would take traditional computers billions of... Proponents of quantum technology have highlighted its potential to revolutionize industries by accelerating drug discovery, advancing artificial intelligence, and enhancing weather prediction. Skeptics, including Huang, caution that such breakthroughs are unlikely to materialize soon. Concerns also persist about the technology’s ability to disrupt cryptographic systems, potentially threatening blockchain security and digital currencies like Bitcoin. Quantum stocks had surged in late 2023, with Rigetti shares climbing by over 1,500% and D-Wave shares increasing nearly tenfold. However, recent volatility has left investors uneasy, and doubts about the technology’s timeline for widespread usefulness have prompted a significant market correction.

Quantum stocks, known for their high risk, remain some of the most volatile in the tech sector as enthusiasm gives way to tempered expectations. Have you read? Best countries for hiring freelancers. Highest Paid Big Pharma CEOs And Top Executives. Best Websites For CEOs, business leaders, and high-net-worth individuals. Best Executive Search Firms And Consultants in America.

Revealed: Most Powerful Women In The World. 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.

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