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In brief: Nvidia CEO Jensen Huang’s recent remarks led to a significant decline in the stock values of several quantum computing companies this week. During a Q&A with investors at CES on Tuesday, Huang suggested that practical quantum computers might still be around 20 years away.
When answering an audience member’s question, Huang mentioned that 15 years might be optimistic and 30 years could be a more conservative estimate. “But if you picked 20, I think a whole bunch of us would believe it,” he added.
Huang’s comments had an immediate and significant impact on quantum computing stocks. As of now, D-Wave Quantum’s shares have fallen 43.8 percent. Rigetti Computing experienced a drop of over 39 percent in its stock price. IonQ, a quantum computing company from Maryland, saw its shares decrease by more than 40 percent. Quantum Computing Inc., trading on NASDAQ under QUBT, is down over 44 percent at the moment.
According to Reuters, these four companies are expected to lose over $5 billion in market value. Thomas Hayes, chairman of Great Hill Capital, expressed to the publication that any money moving towards quantum computing stocks isn’t targeting AI stocks.
“Jensen threw a wet blanket on the quantum story and did everything he could to sell the AI story. It’s that simple,” Hayes commented.
Given Nvidia’s stature in the artificial intelligence sector, it’s not surprising that many would infer such conclusions from Huang’s statements. Yet, the situation might not be so straightforward.
As Huang emphasized minutes earlier, regarding quantum computers, classical computers are necessary for error correction, and the fastest computer humanity can construct is indispensable. “And that happens to be us,” he remarked.
According to Huang, nearly all quantum computing firms globally are collaborating with Nvidia. Whether quantum computing becomes viable sooner or later, Nvidia seems poised to benefit either way. Meanwhile, it focuses on its AI initiatives.
Regarding Nvidia, its stock has gone up by a little over three percent year-to-date after nearly a 170 percent increase in the past year and an astounding 2,200 percent rise over the last five years.
