Quantum computing stocks like IonQ and Rigetti Computing plummeted after Nvidia CEO Jensen Huang suggested that the technology is not ready for prime time. Portfolio managers say the market is overhyped, with a limited addressable market for research and development.
Google’s recent breakthrough with its “Willow” quantum computing chip sparked excitement, but experts warn that the technology is still years away from replacing classical computers. Quantum computers use qubits, which can hold multiple states, making them fast and efficient at solving complex math equations. However, this structure requires a new paradigm in computer programming.
Investors are drawn to companies like Google’s parent Alphabet, which has the resources to develop and implement quantum computing technology. Tigay believes that Alphabet is well-positioned to turn quantum computing into something profitable. The market’s response to Huang’s comments suggests that investors are taking a step back to reassess their enthusiasm for quantum computing stocks.
Source: https://www.investors.com/news/technology/quantum-computing-stocks-investing-technology