Quantum Computing Stocks Tumble After Nvidia CEO’s Long-Term Outlook

Quantum computing stocks experienced a sharp decline on Wednesday after Nvidia CEO Jensen Huang expressed a long-term perspective on the practical utility of quantum computers. During Nvidia’s analyst day, Huang suggested that “very useful” quantum computers are likely 15 to 30 years away, with a consensus around the 20-year mark being most plausible.

This statement led to significant drops in premarket trading, with shares of Rigetti Computing plunging up to 46% early in the day. Other companies in the quantum computing sector like IonQ, D-Wave Quantum, and Quantum Computing Inc. also saw their stocks fall by double-digit percentages. The market reaction reflects a recalibration of investor expectations regarding the timeline for quantum computing to become a commercially viable technology.

Despite the immediate negative impact on stock prices, Huang acknowledged Nvidia’s commitment to playing a significant role in the development of quantum technologies, suggesting optimism for long-term prospects in the field. The sector had previously enjoyed a surge in stock value towards the end of 2024, fueled by announcements like Google’s Willow chip, which promised advancements in error reduction for quantum computing.

The plunge in quantum computing stocks has sparked discussions about the sector’s valuation, with some analysts suggesting that the market might have been overly optimistic about short-term gains from quantum technology. The current downturn serves as a reminder of the technological challenges and the extended timeline for quantum computing to move from research to practical application.

This event underscores the volatility of tech stocks, particularly in emerging fields like quantum computing, where market sentiment can swing dramatically based on influential comments from industry leaders.