Quantum computing stocks, which have enjoyed remarkable growth over the past year, took a sharp hit on Wednesday following comments by Nvidia CEO Jensen Huang. During Nvidia’s analyst day, Huang expressed skepticism about the near-term usability of quantum computers, suggesting that “very useful” systems are likely 15 to 30 years away.
“If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it’s probably on the late side,” Huang said, emphasizing the timeline’s uncertainty.
Shares of key quantum players saw steep declines:
- IonQ Inc. dropped nearly 29%, falling from its recent highs.
- Quantum Computing Inc., D-Wave Quantum Inc., and Rigetti Computing Inc. all tumbled over 30%.
The declines mark a stark contrast to the explosive gains these stocks have seen in the past year, driven by market enthusiasm for the sector. For example:
- Quantum Computing Inc. surged over 1,800% in the last 12 months, reaching $17.49 on Tuesday.
- Rigetti Computing Inc. gained more than 1,500%, closing at $18.39.
- D-Wave Quantum Inc. advanced nearly 1,000%, ending at $9.55.
- IonQ Inc. rose more than 300% to $49.59.
Huang’s cautious outlook on quantum technology also reverberated globally, affecting China-listed companies such as QuantumCTek Co. Ltd. and Accelink Technologies Co. Ltd., whose shares fell sharply.
While Alphabet’s recent quantum breakthrough had reignited optimism about the industry’s potential, Nvidia’s CEO has offered a sobering perspective, reminding investors that the path to practical quantum computing may still be a long one.