Quantum-computing stocks suffered a dramatic sell-off following remarks by Nvidia CEO Jensen Huang, who suggested that practical applications of the technology remain decades away. Huang estimated that “very useful” quantum computers could become a reality within 20 years, a timeline that appears to have rattled investors. Shares of Rigetti Computing tumbled 45% yesterday, while other quantum-focused companies, including D-Wave Quantum, Quantum Computing Inc., and IonQ, saw their stock prices decline by approximately 40%.
Huang stated that Nvidia is positioned to play a “very significant part” in the evolution of quantum computing, highlighting that most quantum-computing firms worldwide currently collaborate with Nvidia. However, the steep market downturn indicates that many investors are questioning the near-term potential of the sector.
Quantum computing has been a hot topic, particularly after Google’s introduction of its quantum chip, Willow, which reportedly solved a complex problem in under five minutes—a task that would take traditional computers billions of years. Proponents of quantum technology have highlighted its potential to revolutionize industries by accelerating drug discovery, advancing artificial intelligence, and enhancing weather prediction. Skeptics, including Huang, caution that such breakthroughs are unlikely to materialize soon. Concerns also persist about the technology’s ability to disrupt cryptographic systems, potentially threatening blockchain security and digital currencies like Bitcoin.
Quantum stocks had surged in late 2023, with Rigetti shares climbing by over 1,500% and D-Wave shares increasing nearly tenfold. However, recent volatility has left investors uneasy, and doubts about the technology’s timeline for widespread usefulness have prompted a significant market correction. Quantum stocks, known for their high risk, remain some of the most volatile in the tech sector as enthusiasm gives way to tempered expectations.
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