Quantum Computing Stocks Take a Hit as Nvidia CEO Dampens Expectations
The quantum computing industry suffered a significant setback on Wednesday as shares of companies like IonQ Inc., Quantum Computing Inc., and Rigetti Computing Inc. plummeted in premarket trading. This sudden downturn was triggered by Nvidia Corp. CEO Jensen Huang’s remarks, which poured cold water on the excitement surrounding the technology’s potential.
A Reality Check for Quantum Computing
During Nvidia’s analyst day, Huang stated that truly useful quantum computers are likely to take decades to develop. When asked about the timeline, he suggested that 15 years might be an optimistic estimate, while 30 years could be a more realistic target. This sobering assessment sent shockwaves through the industry, causing investors to reassess their expectations.
Stocks Take a Tumble
As a result, shares of Quantum Computing Inc., D-Wave Quantum Inc., and Rigetti Computing Inc. dropped by more than 14% in premarket trading, while IonQ fell by around 10%. These companies had experienced a meteoric rise in recent months, fueled by enthusiasm about the technology’s potential. In fact, Quantum Computing shares had surged by over 1,800% in the past 12 months, while Rigetti and D-Wave had seen gains of over 1,500% and nearly 1,000%, respectively.
Global Impact
The ripple effect of Huang’s comments was felt beyond the US, with China-listed quantum computing companies like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd also experiencing sharp declines. Even Alphabet Inc., which had made a significant breakthrough in quantum computing last month, saw its shares slip by 0.3% in premarket trading.
A Dose of Reality
Huang’s remarks served as a reality check for the industry, tempering the excitement and hype surrounding quantum computing. While the technology still holds immense promise, it’s clear that significant challenges and obstacles need to be overcome before it can become a practical reality. As investors and companies alike come to terms with this new timeline, it will be interesting to see how the industry adapts and evolves in the coming years.
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