Rigetti, IonQ Stocks Plunge as Nvidia CEO Dims Quantum Computing Hopes

Quantum computing stocks IonQ (IONQ), Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and Quantum Computing (QUBT) experienced a significant setback on Wednesday, following comments from Nvidia (NVDA) CEO Jensen Huang. Huang suggested that "very useful" quantum computers are likely 15 to 30 years away, casting a long shadow over the timeline for the practical application of quantum computers. This cautious outlook led to a sharp decline in stock prices for leading quantum computing companies, with Rigetti and IonQ being among the hardest hit.



Rigetti's shares plummeted by 35% in the last five days, while IonQ's shares fell nearly 30% over the same period. This downturn was particularly stark given the recent surge in these stocks, with Rigetti climbing over 1,450% and IonQ rising nearly 300% over the past year. Huang's prediction not only affected U.S.-based companies but also had a ripple effect in Asia, notably impacting Chinese quantum computing firms like QuantumCTek Co. Ltd and Accelink Technologies Co. Ltd, whose shares also fell significantly.



Huang's comments reflect a broader industry acknowledgment that quantum computing, despite its promise, remains in the realm of advanced research rather than immediate commercial application. This perspective tempers expectations and might encourage a more realistic approach to investment and development in the sector, focusing on long-term growth and partnerships with classical computing technologies to bridge current gaps.

Despite the recent sell-off, both Rigetti and IonQ still carry strong technical indicators. For example, Rigetti's eight-day simple moving average (SMA) of $16.98 and the 20-day SMA of $12.39 both point to a potential rebound. Similarly, IonQ's eight-day SMA of $43.76 suggests it could be primed for a bounce, while the 200-day SMA at $14.33 is also showing a solid bullish signal. These indicators suggest that, despite the recent setback, both stocks could still be attractive long-term investments.

However, the key technical challenges in quantum computing that could delay its widespread adoption include maintaining quantum coherence and reducing error rates. These challenges are significant hurdles in making quantum systems viable for everyday use. Additionally, the substantial investment required for research and development is another barrier to the rapid advancement of quantum computing technology.

Partnerships with classical computing technologies, such as Nvidia, can help bridge the gaps in quantum computing development by leveraging expertise, facilitating integration, providing resources, and fostering a realistic approach to investment and development. For instance, Nvidia's GPUs can be used to accelerate quantum simulations and optimize quantum algorithms, which are crucial for the practical application of quantum computing. Collaborations with classical computing companies can also provide access to resources and funding for quantum computing research and development, as Nvidia has been working with nearly every quantum computing company worldwide.

In conclusion, Huang's timeline for quantum computing has had a significant impact on the short-term performance of Rigetti and IonQ stocks. However, the long-term investment potential of these companies remains strong, and investors may now be more inclined to adopt a patient, long-term approach to the development of quantum technology. Despite the recent setback, both Rigetti and IonQ still carry strong technical indicators, suggesting that they could still be attractive long-term investments.