Quantum Computing Stocks Dive After Nvidia CEO Says Tech 15-30 Years Away
Stocks in the quantum computing industry faced a sharp decline on Wednesday, January 8, 2025, after Nvidia CEO Jensen Huang shared sobering insights about the future of the technology. Speaking at an analyst event on Tuesday, January 7, Huang stated that “very useful quantum computers” are still 15 to 30 years away from being realized.
Huang’s comments sent shockwaves through the market. Companies like Rigetti Computing, D-Wave Quantum, IonQ, and Quantum Computing experienced substantial drops in stock prices. D-Wave Quantum suffered a 33% decline, while Rigetti, IonQ, and Quantum Computing all saw drops of around 40%. The Defiance Quantum (QTUM) ETF, which tracks these companies along with other tech firms like Nvidia, fell by 4.5%.
Huang explained the significant timeline, suggesting that even 15 years would be optimistic for developing highly practical quantum computers. “If you kind of said 15 years for very useful quantum computers, that would probably be on the early side,” Huang said. “If you said, you know, 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
He added that Nvidia’s position as a leader in classical computing makes it an ideal partner for quantum companies. “It turns out that you need a classical computer to do error correction with the quantum computer, and that classical computer better be the fastest computer that humanity can build, and that happens to be us,” Huang remarked.
The plunge in quantum computing stocks follows a recent surge in the sector, driven by Alphabet’s announcement of its quantum chip, Willow, in December 2024. Alphabet claimed significant breakthroughs with Willow, fueling investor optimism. However, Huang’s statement appears to have tempered that enthusiasm, shifting market sentiment rapidly.
Quantum computing has been hailed as a transformative technology, with the potential to revolutionize industries like cryptography, logistics, and drug development. Yet, the long development timeline highlighted by Huang underscores the challenges ahead for the industry.
Investors will now be watching closely for developments in both quantum technology and the broader market reaction, as confidence in the sector faces a critical test.
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