Quantum computing stocks plunged significantly after Nvidia CEO expressed skepticism on immediate impact

From Nasdaq: 2025-01-08 15:45:02

Quantum computing stocks plummeted after Nvidia CEO Jensen Huang expressed skepticism about the sector’s immediate impact. Rigetti Computing, Quantum Computing, and D-Wave Quantum all saw steep declines, with Rigetti down by 41%, Quantum Computing by 40%, and D-Wave Quantum by 30%. These companies have minimal revenue and have been largely driven by hype and sentiment.

Huang’s comments at CES suggested that it may be 15-30 years before quantum computers have a significant impact. Despite recent milestones, companies like Rigetti Computing, Quantum Computing, and D-Wave Quantum have minimal revenue, small balance sheets, and are largely bets on future monetization. Alphabet’s Willow announcement, while significant, was more of a scientific research milestone.

Investors should heed Huang’s caution and consider the inflated nature of quantum computing stocks. These companies have surged based on hype, not revenue. Until quantum computing reaches a monetizable opportunity, it may be best to avoid investing in these stocks. The market’s reaction to Huang’s comments indicates the volatile nature of these investments.



Read more at Nasdaq: Why Quantum Computing Stocks Rigetti Computing, Quantum Computing, and D-Wave Computing All Plunged Today