Quantum stocks like Rigetti plunge after Nvidia’s Huang says computers are 15 to 30 years away
Nvidia CEO Jensen Huang speaks to the press during the launch of the Gefion supercomputer at the Vilhelm Lauritzen Terminal in Kastrup, Denmark, on October 23, 2024.
Ritzau Scanpix | Mads Claus Rasmussen | Via Reuters
Quantum computing shares fell on Wednesday after Nvidia CEO Jensen Huang stated that useful quantum computers are many years away.
“If you said 15 years for very useful quantum computing, it 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 role” in creating the computers and helping the industry “get there as quickly as possible.”
Rigetti falls for comments made by Nvidia CEO Jensen Huang
Stocks linked to quantum computers tumbled on the heels of the comments, with Rigetti Computing falls 40%, while IonQ fall more than 32%. D-Wave Quantum fell more than 38%, while the Defiance Quantum & AI ETF fell 5%. Quantum computingwhich announced a stock offering to raise $100 million, sank 39%.
The sector had received a boost into late 2024 as excitement around quantum computers exploded after Google unveiled its latest Willow chip, which it said performed better than its 2019 predecessor in reducing errors. Many investors also hoped that the sector would become the next big tech craze since the rise of AI in the wake of ChatGPT.
The excitement boosted the shares to the end of the year, with Rigetti and D-Wave up 1,449% and 854% respectively.
Proponents of quantum computers say the technology will be able to perform computing tasks ordinary computers cannot and process far greater amounts of data.
But many investors have warned that it may be too early to rule out real winners in the sector and real use cases for the technology.