Nvidia CEO Jensen Huang has dealt a blow to the quantum computing stock market, saying practical applications for the technology are at least 15 years away. This statement from Huang comes after several companies’ shares skyrocketed in 2024 due to optimism about quantum computing’s potential. Despite this setback, some experts argue that mainstream applications are still far off.
Quantum computers use “qubits” and operate based on quantum mechanics. While they have shown immense power, their practical uses remain uncertain. Google recently announced a breakthrough with its Willow chip, which could solve complex math problems in an unimaginably short time. However, this does not mean that mainstream applications are imminent.
Several companies, including Rigetti Computing, Quantum Computing Inc., IonQ, and D-Wave Quantum, have experienced significant stock price fluctuations due to Huang’s statement. These fluctuations were largely driven by the companies’ soaring valuations in 2024. As a result, shares of these companies plummeted on Wednesday, with some seeing declines of up to 45%.
In response to Huang’s prediction, D-Wave Quantum CEO Alan Baratz stated that his company’s technology is already being used by businesses such as Mastercard. This contradicts Huang’s claim that practical applications for quantum computing will not arrive in the near future.
The market reaction to Huang’s statement highlights the challenges faced by quantum computing companies. While some see immense potential in the technology, others remain skeptical about its ability to deliver practical results within a reasonable timeframe.
Source: https://fortune.com/2025/01/09/nvidia-ceo-jensen-huang-tanks-quantum-computing-stocks