Quantum computing stocks experienced a significant drop in value after Nvidia CEO Jensen Huang made comments suggesting that “very useful” quantum computers are still decades away. Huang’s cautious outlook dampened investor enthusiasm that had fueled a sharp rise in these stocks over the past year. While Huang expressed optimism about Nvidia’s role in advancing quantum technology, his comments indicated that widespread application of the technology is still far from imminent.
Huang stated, “If you kind of 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. If you picked 20, I think a whole bunch of us would believe it.”
The market reacted strongly to Huang’s remarks, causing a pause in the recent quantum computing rally. Stocks of companies such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. plummeted in premarket trading. IonQ dropped 43%, while Rigetti and Quantum Computing fell 49% and 46% respectively in a single day. This sell-off wiped out billions in market capitalization, a sharp contrast to the massive gains these companies had seen over the past year. QUBT shares, for instance, had surged over 1,800% in the last 12 months, while Rigetti and D-Wave recorded gains of 1,500% and 1,000% respectively.
The sell-off was not limited to U.S. markets, as China-listed quantum computing companies like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd also experienced a nosedive in their share prices.
Despite the sharp declines, proponents of quantum computing remain optimistic about the sector’s long-term potential. Market forecasts project significant growth for the industry, with a projected market size of $12.6 billion by 2032, representing an annual growth rate of 34.8%. This presents high-stakes investment opportunities in a sector poised for substantial expansion, although it comes with the inherent risks of a rapidly evolving industry.
