Quantum stocks tumble as Nvidia CEO forecasts decades for 'very useful' computers; sector faces correction
Quantum computing stocks fell sharply Wednesday after Nvidia CEO Jensen Huang stated that useful quantum computers are still many years away, according to CNBC.
Speaking during Nvidia’s analyst day, Huang said, “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 also emphasized Nvidia’s role in the development of quantum computing, stating the company will play a “very significant part” in accelerating progress within the industry.
Despite these assurances, his remarks triggered steep declines in quantum computing-related stocks. Rigetti Computing plummeted 40 percent, IonQ dropped 37 percent, and D-Wave Quantum fell over 30 percent.
Quantum Computing, which had recently announced a US$100m stock offering, sank 37 percent. The Defiance Quantum & AI ETF also fell 4 percent.
AXS Investments CEO Greg Bassuk called the market reaction somewhat “overblown.” He said, “As valuations have become a bit lofty, we’re not surprised by today’s correction.”
Bassuk added that the consensus has long been that quantum computing’s mass adoption remains years away, making the sell-off unsurprising.
The quantum computing sector experienced significant gains toward the end of 2024, driven by Google’s unveiling of its Willow chip.
The chip reportedly improved error correction compared to its 2019 predecessor, fuelling investor optimism.
Many hoped quantum computing would emerge as the next major technological frontier following the rise of AI spurred by ChatGPT. These developments propelled stocks like Rigetti and D-Wave to rally 1,449 percent and 854 percent, respectively.
Advocates of quantum computing highlight its potential to perform tasks beyond the capabilities of traditional computers and handle far greater data volumes.
However, some investors remain cautious, warning it may be premature to identify definitive leaders or real-world applications in the sector.
