Quantum stocks like Rigetti plunge after Nvidia's Huang says the computers are 15 to 30 years away

Quantum computing stocks fell Wednesday after Nvidia CEO Jensen Huang stated that useful quantum computers are still several years off.

If you put a time frame of 15 years on the timeline for really powerful quantum computers, many people would consider that a conservative estimate. However, if you said 30 years, it might be a more cautious projection. I think most experts would feel more comfortable predicting a timeline of around 20 years for such advanced quantum computing capabilities.

Huang thinks Nvidia will have a "very significant part" in making computers and getting the industry to reach its goals in the shortest amount of time possible.

Shares linked to quantum computing fell sharply after the comments, with Rigetti Computing plummeting 40%, followed by IonQ's 37% decline, D-Wave Quantum's drop of over 30%, and the Defiance Quantum & AI ETF's 4% slide. Quantum Computing, which plans to issue $100 million in stock, sank 37%.

We're not surprised by today's correction in valuations due to their recent climb, and to some extent, the market's reaction is exaggerated.

There's a broad agreement that significant quantum computing breakthroughs are still far from widespread adoption, which explains why today's negative news doesn't really hold much substance.

The sector experienced a surge nearing the end of 2024, fueled by the fervor surrounding quantum computing that kicked off after Google unveiled its latest innovation, the Willow chip. Google claimed its new chip surpassed its 2019 predecessor in minimizing errors. Many investors were also optimistic about the sector's potential to become the next major technology fad, building off the momentum inspired by the emergence of ChatGPT.

The enthusiasm on the stock of these companies lifted their shares at the end of the year, with Rigetti and D-Wave almost quadrupling and nearly increasing by more than eight times, respectively.

To eliminate practical dilemmas in the market and determine genuine applications.