Quantum computing stocks plummeted on Thursday after Nvidia Corp. (NASDAQ: NVDA) CEO Jensen Huang voiced skepticism about the industry’s immediate outlook.
D-Wave Quantum (NYSE: QBTS) plunged 18%, while Rigetti Computing (NASDAQ: RGTI) fell 9%. Quantum Computing (NASDAQ: QUBT) dropped 11.7%, and IONQ (NYSE: IONQ) closed the day 9.2% lower.
The sell-off followed Huang’s comments at Nvidia’s GTC conference, where he expressed surprise at the existence of publicly traded quantum computing firms. “I didn’t know they were public. How can a quantum company be public?” he said, casting doubt on the current stage of quantum computing technology.
Previously, Huang weighed in on the topic in January, saying that “very useful” quantum computers are likely decades away. That earlier statement had already negatively affected shares of companies like IonQ Inc., setting the stage for Thursday’s reaction.
Ironically, the GTC event featured discussions with leaders from quantum computing firms, including IONQ (NYSE: IONQ) and D-Wave Quantum (NYSE: QBTS), but it failed to alleviate investor concerns.
During the discussions, Huang acknowledged the novelty of quantum computing and suggested it could take years to develop fully. In response, company executives on stage argued that quantum computers are already solving complex scientific problems, while others suggested the technology is approaching a point where it could complement traditional computing systems.
Despite the mixed perspectives, investor confidence wavered as it became clear that the practical impact of quantum computing may not materialize as soon as hoped. The industry, which relies on the properties of subatomic particles for data processing, is still in an experimental phase, with startups and tech giants like Microsoft Corp. (NASDAQ: MSFT) and Alphabet (NASDAQ: GOOGL) unit Google exploring its practical applications.
Thursday’s event seemed to serve as a wake-up call for the sector, with Huang jokingly referring to it as a “therapy session” for him.
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Mary Lee is a freelance writer and journalist based in Toronto, Canada. She holds an M.S. degree in business and economic journalism from Columbia University’s Graduate School of Journalism in New York and a certificate in digital marketing from the University of Toronto. Read Full Bio
