Quantum Computing Stocks Take a Hit as Nvidia CEO Dampens Expectations
The quantum computing sector took a significant blow on Tuesday as Nvidia CEO Jensen Huang tempered expectations about the timeline for developing practical quantum computers. Shares of companies like IonQ Inc., Quantum Computing Inc., D-Wave Quantum Inc., and Rigetti Computing Inc. plummeted in extended trading, wiping out some of the massive gains they had made in recent months.
A Reality Check for Quantum Computing
Huang’s comments, made during Nvidia’s analyst day, poured cold water on the hype surrounding quantum computing. He suggested that truly useful quantum computers are likely to take decades to develop, with a 20-year timeline being a reasonable estimate. This stark assessment sent shockwaves through the industry, causing investors to reassess their bets on these companies.
The Quantum Computing Bubble Bursts
IonQ and Quantum Computing Inc. were among the hardest hit, with their shares tumbling over 16% in the postmarket session. D-Wave Quantum Inc. and Rigetti Computing Inc. also suffered significant losses, dropping more than 14%. These companies had seen their stock prices soar in recent months, fueled by excitement about the potential of quantum computing. However, Huang’s comments brought a dose of reality to the market, highlighting the significant technical hurdles that still need to be overcome.
Alphabet’s Breakthrough Fades into the Background
Last month’s quantum computing breakthrough by Alphabet Inc. had sparked renewed interest in the sector, but Huang’s comments have now overshadowed that achievement. Alphabet’s shares, which had posted their best month since May 2023, slipped 0.3% in late trading.
A Long Road Ahead for Quantum Computing
The quantum computing sector has been on a wild ride in recent months, with some companies seeing their stock prices surge by over 1,800%. However, Huang’s comments serve as a reminder that this technology is still in its infancy. With decades of development still ahead, investors would do well to temper their expectations and focus on the long-term potential of quantum computing.
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