Quantum computing stocks drop sharply after Nvidia CEO’s warning
Over $8 billion in market value was lost as quantum stocks dropped following a warning from Nvidia’s CEO.
Quantum computing stocks experienced a sharp decline on Wednesday following comments from Nvidia CEO Jensen Huang, who predicted practical quantum computers are still two decades away. His timeline dampened expectations in a sector already facing significant investment without broad applications.
Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ saw their shares plummet over 40%, with more than $8 billion in combined market value lost. Investment chief Ivana Delevska of Spear Invest, which holds Rigetti and IonQ shares, supported Huang’s prediction, noting it took Nvidia a similar period to develop accelerated computing.
The sector had previously surged due to a technological breakthrough at Google, with stocks rising at least threefold last year. Despite the optimism, revenue generation remains minimal, with IonQ valued at over $10 billion but expected to generate just $41.6 million in 2024 revenue.
Craig-Hallum analyst Richard Shannon suggested government contracts could drive future revenue, cautioning investors not to focus solely on current low earnings. He also warned quantum computing could eventually disrupt parts of classical computing, where Nvidia plays a leading role.
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