icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

Quantum Computing Stocks Tumble After Zuckerberg Backs Nvidia CEO's 'Practical' Comments

Wesley ParkMonday, Jan 13, 2025 6:30 am ET
3min read


Quantum computing stocks experienced a significant downturn on Monday, following comments made by Meta CEO Mark Zuckerberg and Nvidia Corp. CEO Jensen Huang. Both executives expressed caution regarding the timeline for quantum computing advancements, which triggered a sharp decline in quantum computing stocks. Here's a closer look at the events and their implications for investors.

Zuckerberg and Huang's Comments

During an appearance on Joe Rogan's podcast, Zuckerberg acknowledged his limited expertise on quantum computing but supported the industry consensus of a decade-long timeline for widespread adoption. He stated, "I’m not really an expert on quantum computing, but my understanding is that it’s still quite a ways off from being a truly practical paradigm." Huang, speaking at Nvidia's CES 2025 event, suggested that practical quantum computers might be 15 to 30 years away, echoing Zuckerberg's cautious outlook.

Market Impact

The remarks by Zuckerberg and Huang have intensified concerns about the future of quantum computing. Earlier, during Nvidia's analyst day, Huang expressed optimism about quantum computing's potential but cautioned that practical applications might take 15 to 30 years to materialize. This outlook has led to a sharp decline in quantum computing stocks, with IonQ Inc. (IONQ) falling 39%, Quantum Computing Inc. (QUBT) dropping 43.34%, and Rigetti Computing Inc. (RGTI) tumbling 45.41%.

Why It Matters

Despite the cautious projections, some industry insiders have countered Huang's views, arguing that quantum-based innovations are already being integrated into the tech ecosystem. Retail investors have shown optimism, with several quantum computing stocks experiencing significant growth in recent weeks. However, the recent rallies have erased much of their profit potential for investors, and some are even in danger of costing shareholders money.

Investment Caution

Huang's comments serve as a reminder for investors to exercise caution when investing in early-stage technologies like quantum computing. While the potential is significant, the timeline for commercial success may be longer than many investors anticipate. It is essential to maintain a balanced perspective and avoid getting caught up in short-term hype.




In conclusion, the comments made by Zuckerberg and Huang have important implications for the valuation of quantum computing stocks, highlighting the need for investors to consider the long-term potential of the technology while remaining cautious about near-term expectations and market volatility. As the industry continues to evolve, investors should stay informed about the latest developments and maintain a balanced perspective on the opportunities and risks associated with quantum computing investments.
Comments

Add a public comment...
Post
Refresh
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App