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Nvidia’s CEO Jensen Huang made headlines on Wednesday when he assessed the timeline for the development of effective quantum computers, suggesting that the technology may not be ready for practical use for many years. Speaking during Nvidia’s analyst day, he expressed a cautious outlook, stating, “If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
Despite his tempered forecast, Huang emphasized Nvidia’s commitment to contributing significantly to the advancement of quantum computing, aiming to accelerate the industry’s progress toward achieving operational systems.
Following Huang’s remarks, the stock market saw a significant downturn for companies involved in quantum computing. Rigetti Computing reported a staggering decline of 25%, while IonQ experienced a drop of over 13%. D-Wave Quantum fell by more than 19%, and the Defiance Quantum & AI ETF decreased by approximately 3%. Notably, Quantum Computing, which had planned a stock offering to raise $100 million, saw its shares plummet by 21%.
The quantum computing sector had recently enjoyed a surge in enthusiasm, particularly after Google introduced its advanced Willow chip, touted for its improved error reduction capabilities compared to its earlier version released in 2019. This innovation sparked investor interest, causing stock prices for Rigetti and D-Wave to skyrocket by 1,449% and 854% respectively as 2024 came to a close.
Nevertheless, many analysts caution that the field remains in its infancy regarding identifying clear leaders and real-world applications of quantum technology. Investors are urged to remain prudent while navigating this emerging sector, which has yet to showcase its full potential.
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