Quantum computing stocks took a hit on Wednesday after Nvidia’s CEO Jensen Huang predicted that practical use of the technology would be two decades away. The statement threw cold water on a sector that was already expected to spend millions more on quantum computing, which can only perform niche calculations so far.
Huang’s timeline, which places the development of “very useful quantum computers” at 20 years, is seen as realistic by some analysts. Ivana Delevska, investment chief of Spear Invest, said “the 15 to 20-year timeline seems very realistic” and compared it to Nvidia’s own journey in developing accelerated computing.
Despite the long wait, investors remain optimistic about the technology’s potential. IonQ, valued at over $10 billion, is expected to generate $41.6 million in revenue for fiscal 2024, while Rigetti is likely to bring in $11 million. Analyst Craig-Hallum predicts that quantum computing will be “disruptive to parts of the classical compute business”, benefiting companies like Nvidia.
However, the small revenues generated by these companies remain a concern, with investors worried about dilution. The sector’s long-term prospects are being closely watched, particularly in the context of national security and military applications.
Source: https://www.reuters.com/technology/quantum-computing-stocks-take-hit-nvidia-ceo-predicts-long-road-ahead-2025-01-08