Quantum Computing Stocks Plunge as Nvidia CEO Predicts Extended Wait

Quantum Computing Stocks Plunge as Nvidia CEO Predicts Extended Wait

Nvidia CEO Jensen Huang’s recent remarks have sent shockwaves through the quantum computing industry, causing a significant decline in stock prices for leading companies in the field. Huang’s assessment that the widespread practical use of quantum computers is likely two decades away has cast doubt on the near-term viability of the technology.

Nvidia’s Cautious Outlook Dampens Expectations

Huang’s estimation of a 15 to 30-year timeline for the advent of “very useful quantum computers” has tempered enthusiasm in the sector, which had been anticipating substantial investments. The long wait indicated by Huang suggests that quantum computing’s applications may remain limited for the foreseeable future.

Market Losses Reflect Investor Concerns

Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ witnessed sharp declines in their stock prices, collectively losing an estimated $5 billion in market value. Investors’ concerns over the extended timeline for quantum computing’s practical use have prompted a reassessment of the sector’s potential.

AI Stocks Benefit from Shift in Focus

Thomas Hayes, chairman of Great Hill Capital, attributed the decline in quantum computing stocks to a shift in investor interest toward artificial intelligence (AI) stocks. Hayes believes that Nvidia’s emphasis on AI has swayed investors away from quantum computing.

Google’s Breakthrough and Microsoft’s Milestone

Despite Huang’s cautious outlook, the quantum computing industry has witnessed notable progress in recent times. In December, Google unveiled a breakthrough chip that significantly reduced the time required for complex calculations compared to classical computers. Additionally, Microsoft and Quantinuum have achieved a key milestone in the commercialization of quantum computers.

Investment Chief’s Optimism

Ivana Delevska, investment chief of Spear Invest, remains optimistic about the long-term potential of quantum computing. She draws parallels with Nvidia’s development of accelerated computing, which took a similar timeline. Delevska believes that the 15 to 20-year estimate for quantum computing’s practical use is reasonable and consistent with the industry’s development trajectory.