Quantum stocks like Rigetti plunge after Nvidia’s Huang says computers are still 15 to 30 years away

Quantum stocks like Rigetti plunge after Nvidia’s Huang says computers are still 15 to 30 years away

Nvidia CEO Jensen Huang speaks to the press during the launch of the Gefion supercomputer at the Vilhelm Lauritzen Terminal in Kastrup, Denmark, October 23, 2024.

Ritzau Scanpix | Mads Claus Rasmussen | Via Reuters

Quantum computing stocks fell on Wednesday afterward Nvidia CEO Jensen Huang explained that useful quantum computers are still many years away.

“If you said 15 years for very useful quantum computers, that would probably be a little early,” he said during Nvidia analyst day. “If you said 30, that’s probably too late. But if you chose 20, I think a lot of us would believe it.”

Huang said he believes Nvidia will play a “very important role” in the development of computers and help the industry “get there as quickly as possible.”

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Rigetti responds to comments from Nvidia CEO Jensen Huang

Stocks related to quantum computing plunged following the comments Rigetti Computing Dropped by 40% while IonQ lost more than 32%. D-wave quantum fell more than 38%, while the Defiance Quantum & AI ETF fell 5%. Quantum computingwhich announced a stock offering to raise $100 million, fell 39%.

The sector had seen a boost by the end of 2024, when enthusiasm for quantum computing exploded thereafter Google introduced its latest Willow chip, which performs better at error reduction than its 2019 predecessor. Many investors also hoped that the sector would be the next big technology trend since the rise of AI in the wake of ChatGPT.

The excitement boosted stocks through the end of the year, with Rigetti and D-Wave rising 1,449% and 854%, respectively.

Proponents of quantum computing say the technology will be able to perform computing tasks that regular computers cannot handle and process far larger amounts of data.

However, many investors have warned that it may be too early to rule out real industry winners and real use cases for the technology.

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