Wed Jan 08 17:05:18 UTC 2025: **Quantum Computing Stocks Plunge After Nvidia CEO Casts Doubt on Timeline**

NEW YORK (CNBC) — Shares in quantum computing companies plummeted Wednesday following comments from Nvidia CEO Jensen Huang who predicted that truly useful quantum computers are still 20 years away. His statement, made during Nvidia’s analyst day, triggered a significant sell-off across the sector.

Rigetti Computing saw its stock price drop 47%, IonQ fell 44%, and D-Wave Quantum declined by over 44%. The Defiance Quantum & AI ETF also suffered a 5% loss, and Quantum Computing, which recently announced a $100 million stock offering, sank 47%.

While some analysts, like AXS Investments CEO Greg Bassuk, described the reaction as “somewhat overblown,” noting that the long-term timeline for widespread quantum computing adoption has been widely anticipated, the market clearly reacted negatively to Huang’s assessment. The sector had experienced a surge in late 2024 fueled by Google’s announcement of its improved Willow chip and broader excitement surrounding the potential of quantum computing, similar to the recent AI boom. This excitement led to massive gains for some companies, including Rigetti (up 1,449%) and D-Wave (up 854%).

Despite the potential for quantum computing to revolutionize data processing, many investors remain cautious, highlighting the early stage of the technology and the difficulty in identifying successful companies and viable applications. Nvidia, while expressing skepticism about the near-term prospects, indicated its intention to play a role in the development of the technology.

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