University of Kwazulu-Natal

Why Quantum Stocks Are Crashing Nvidia S Chilling Prediction

Bonisiwe Shabane
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why quantum stocks are crashing nvidia s chilling prediction

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 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 entire Quantum Computing stock industry took a massive hit on Wednesday as NVIDIA CEO, Jensen Huang, made comments about the industry during the company’s investor day. Juang commented that “If you said 15 years for very useful quantum computers, that would probably be on the early side,”. Juang followed-up with “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.”

Quantum computing has taken the lead role, in terms of performance, from Ai industry stocks over the last two months since Google announced the development of its “Willow” chip. The Willow chip demonstrates that quantum computers can solve specific problems much faster than classical supercomputers. Google announced that Willow performed a standard benchmark computation in under five minutes that would take one of today’s fastest supercomputers 10 septillion years. Google is the strongest candidate for quantum computing hardware breakthroughs over the next 5 years. Quantum computing stocks have been on a wild ride over the past few months. In late 2024, their prices skyrocketed, driven by the surging demand for generative AI applications and breakthroughs, such as Google's revolutionary chip, capable of solving complex problems at lightning speed.

However, the optimism faded as 2025 began, with Nvidia CEO's pessimistic market projections sending shockwaves through the sector and causing the largest players to lose billions in stock value. According to data presented by AltIndex.com, the combined stock value of the five largest quantum computing stocks plummeted by nearly $11 billion in just nine days. Ever since revealing how much it expects to profit from the rise of artificial intelligence in 2023, Nvidia has been at the frontline of the AI-fueled stock market rally that pushed the S&P 500... But the world's most valuable chipmaker isn't just a leader in AI and GPUs. Nvidia has become a tech powerhouse whose every move sends ripples across the tech sector, and the quantum stocks are the perfect example. After Nvidia CEO Jensen Huang expressed doubts about the near-term potential of quantum computing earlier this month, the stocks of the largest players in the market took a nosedive, losing billions in value practically...

In the four days following Huang's remarks, leading companies like IBM, Rigetti Computing (RGTI), D-Wave Quantum (QBTS), Quantum Computing (QUBT) and IonQ (IONQ) collectively lost $8 billion in stock value. By January 13, their loss ballooned to a shocking $10.9 billion, with stock prices dropping between 30% and 50%. Statistics show Rigetti Computing (RGTI) suffered the biggest hit, with its stock value plummeting by 53% in nine days, causing a $2.8 billion hit on the company. The AltIndex data show the sentiment around the company also nosedived, with its score on top investor forums dropping from a robust 82 at the start of January to just 57.

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