The quantum computing sector faced a setback following comments from Nvidia (NASDAQ: NVDA) CEO Jensen Huang, who suggested that the practical application of quantum computing might still be two decades away.
This statement had a ripple effect across the stock market, leading to a sharp decline in the shares of several quantum computing companies. Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NASDAQ: QBTS), and IonQ (NYSE: IONQ) saw their market value decrease by over $5 billion.
Investors reacted swiftly to Huang’s forecast, reflecting concerns over the timeline for quantum technology’s commercial viability, contrasting with the optimistic projections surrounding Google’s recent advancements with Willow last month.
Quantum Computing Stocks Crash After Nvidia’s CEO Comments on Progress
The stock market witnessed notable fluctuations in several quantum computing stocks following recent developments. RGTI, for instance, experienced a dramatic drop, opening at $12.65 and falling to a current price of $9.355, with a day low of $9.00.
This decline reflects investor apprehension following Nvidia’s comments. Similarly, IONQ saw its stock price decrease significantly, from a previous close of $49.59 to $26.75, with the day’s trading range between $26.14 and $39.00. The volatility in these stocks underscores the market’s sensitivity to industry forecasts and technological advancements.
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Google Remains Relatively Stable
Despite the quantum computing sector turbulence, Google’s parent Alphabhet’s stock (NASDAQ: GOOG) has shown relative stability. Opening at $192.585, the current price at the time of writing stands at $194.19, with a trading range for the day between $192.38 and $196.29. Google’s market capitalization remains robust at $2.38 trillion, and analysts maintain a positive outlook with a “Buy” recommendation.
The company’s recent quantum chip announcement has captured the tech world’s imagination and reinforced investor confidence in its long-term potential. As Google continues to push the boundaries of innovation, its stock performance reflects a steady trajectory amidst a fluctuating market landscape.
Disclaimer: The author does not hold or have a position in any securities discussed in the article. All stock prices were quoted at the time of writing.
About the author
Tim Fries is the cofounder of The Tokenist. He has a B. Sc. in Mechanical Engineering from the University of Michigan, and an MBA from the University of Chicago Booth School of Business. Tim served as a Senior Associate on the investment team at RW Baird’s US Private Equity division, and is also the co-founder of Protective Technologies Capital, an investment firm specializing in sensing, protection and control solutions.
