Quantum Computing Stocks Plummet After Nvidia CEO's Reality Check
Quantum computing stocks suffered heavy losses after Nvidia CEO Jensen Huang stated 'very useful' quantum computers are decades away, contradicting recent optimism sparked by Google's Willow chip.
Quantum Computing Stocks Plummet Following Nvidia CEO's Comments on Timeline
On Wednesday, quantum computing stocks took a sharp dive after Nvidia CEO Jensen Huang cast doubt on the near-term prospects of the technology during his keynote at the Consumer Electronics Show (CES). Rigetti and Quantum Computing each fell around 47%, IonQ dropped 45%, and D-Wave Quantum declined nearly 50%.
Nvidia CEO Questions Quantum Computing Timeline
Huang, speaking at CES on Tuesday, stated that "very useful" quantum computers are still likely 15-30 years away. He emphasized the need for more advancements in technology, especially for solving large data problems.
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. But if you picked 20, I think a whole bunch of us would believe it.
Huang acknowledged the current capabilities of quantum computing in addressing small data challenges, such as cryptography. However, he believes that Nvidia, as a key player in the industry, could significantly contribute to accelerating the development of the technology.
A Stark Contrast to Previous Optimism
This sudden downturn marks a significant shift from the optimism that swept through the sector in late 2024, when Google revealed its new Willow chip. The chip promised faster and expanded applications for quantum computing, leading to an upswing in the stocks of Rigetti, D-Wave Quantum, and Quantum Computing.
Analysts were bullish on the Willow chip, pointing out its potential impact on drug discovery, advanced material design, and new encryption solutions. Yardeni Research referred to the chip as a "quantum leap in quantum computing," highlighting its improved performance over current supercomputers.
Conclusion
While Nvidia CEO Huang's comments have cast a shadow over the immediate future of quantum computing, the technology remains a promising and exciting field. As the technology advances and more players enter the space, the timeline for practical applications may be shortened.
For now, the focus turns towards overcoming the challenges associated with scaling quantum computing capabilities. Stay tuned as the industry navigates these hurdles and strives for the next breakthrough.
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