In an era where technology and finance are intricately interwoven, the realm of quantum computing has become a focal point for investors and tech enthusiasts alikeLast week, the comments made by NVIDIA's CEO Jensen Huang regarding the future of quantum computing sent ripples throughout the capital markets, akin to a boulder cast into a tranquil lake, inspiring a frenzy of sell-offs in related stocksInvestors were taken aback, unaware that this would only mark the beginning of a tumultuous week in the quantum sectorFollowing Huang's remarks, Meta’s CEO Mark Zuckerberg swiftly emerged as the latest tech titan to pour cold water on the quantum computing discourse.
As the clock struck Monday, Zuckerberg issued a stark warning, asserting that quantum computing is still years away from widespread application
“I’m not a professional in quantum computing,” he openly stated during a highly publicized blog interview last Friday, “but from what I understand, there’s a long, long way to go before this technology can serve as a truly practical and widely utilized example.” He elaborated further, mentioning that many insiders within the industry estimate that practical applications may still be a decade away.
Zuckerberg’s comments acted as a bolt from the blue, triggering a strong reaction in the stock market as quantum computing-related stocks took another nosediveOn that fateful Monday, D-Wave Quantum Inctook the lead in the downturn, with its share prices plummeting an alarming 33%. Rigetti Computing faced a similar fate with a drop exceeding 32%, while Quantum Computing Inc
also suffered significant losses, registering a 27% declineReflecting on the year, the market capitalizations of these three stocks have been halved, yet intriguingly, compared to three months ago, their prices had skyrocketed several timesThis demonstrates the dramatic fluctuations in market sentiment surrounding quantum computing.
IonQ Inc., amidst this storm, saw comparatively smaller losses at 14%. However, since the beginning of the year, this stock has also experienced a total decline of 33%, unable to escape the effects of market sentiment.
Notably, this marks the second significant dip for quantum computing stocks this yearThe first occurred the previous Wednesday when Huang had voiced his cautious outlook on quantum computing
He articulated that while NVIDIA possesses the capability to produce traditional chips compatible with quantum computing, realizing a genuinely “useful quantum computer” would require quantum processing units in quantities a million times greater than what currently existsHuang went on to predict that bringing such a “really useful quantum computer” to market could take between 15 to 30 years.
In recent months, the quantum computing landscape had shone with promise as related stocks soared due to burgeoning investor interest in the technology's enormous potentialThe announcement last December from Google about its unprecedented quantum computing chip “Willow” acted as a catalyst, igniting investors' enthusiasm for quantum-related stocksDriven by this fervor, stocks in quantum computing surged in 2024. Rigetti’s share prices soared by an astounding 1,449%, while D-Wave's shares climbed by 854%. Investors were convinced that quantum computing would become another transformative technology following artificial intelligence, possessing the unique potential to handle exceptionally complex computational tasks and efficiently process vast amounts of data across various sectors, including technology, finance, and healthcare.
Confronted with the skepticism from Huang and Zuckerberg, D-Wave Quantum’s CEO Alan Baratz expressed deep dissatisfaction last week
