Written by Alshiya Bajwa
(Reuters) – Quantum computing stocks fell on Wednesday after Nvidia (NASDAQ:) Chief Executive Jensen Huang said commercialization of quantum computing technology is probably 20 years away. , a year-long rally was paused.
The long wait for the “very useful quantum computer” outlined by Huang has put a damper on a field that was already expected to spend millions more on the technology, which so far can only perform niche calculations. It will be showered.
“If you say 15 years…that's probably on the early side. If you say 30 years, it's probably on the slow side. But if you say 20 years, I think a lot of us would believe that,” he said. said Tuesday.
Righetti Computing, DWave Quantum (NASDAQ:), Quantum Computing, and AeonQ all fell more than 35%.
Together, the companies will lose more than $5 billion in market value.
“The dollar chasing quantum computing stocks is not chasing AI stocks,” said Thomas Hayes, chairman of Great Hill Capital.
“Jensen threw a wet blanket on the quantum story and did his best to sell the AI story. It's that simple.”
Shares of four quantum computing companies have at least tripled, driven by Google's (NASDAQ:) high-profile breakthrough last December and increased computing needs driven by generative AI applications.
Google has unveiled a new generation of chips that it says solves computing problems in five minutes that would take a classical computer more time than the history of the universe.
In April, Microsoft (NASDAQ:) and Quantinuum announced that they had achieved a significant step toward commercializing quantum computers, but questions remain about how many years it will take before the technology can be used to beat traditional supercomputers. did not comment.
“A 15-20 year timeline seems very realistic,” said Ivana Derevska, investment director at Spear Invest, which owns Righetti and AeonQ shares in actively managed ETFs.
“That's about the same amount of money it took Nvidia to develop accelerated computing.”
