Quantum computing stocks experienced a significant rebound during Tuesday morning trading after a sharp decline earlier in the week. This volatility followed comments from Meta CEO Mark Zuckerberg and Nvidia CEO Jensen Huang, which cast doubt on the near-term potential of quantum computing.
Rigetti Computing (RGTI) led the surge, with its stock price soaring by almost 30% on Tuesday morning. Quantum Computing (QUBT) and D-Wave Quantum (QBTS) also saw substantial gains, with shares rising by approximately 17% and 15%, respectively. IonQ (IONQ) experienced a more modest increase of around 2%.
However, the rally lost some momentum as the day progressed. By midday, Rigetti’s gains had moderated to around 13%, D-Wave’s to around 9%, and Quantum Computing’s to almost 6%. IonQ, in contrast, saw its share price reverse course and fall by more than 2%.
The initial plunge in quantum computing stocks was triggered by remarks made by Zuckerberg and Huang, suggesting that practical applications of quantum computing are still decades away. During an appearance on the Joe Rogan podcast, Zuckerberg estimated the technology’s widespread usefulness to be “a decade-plus out.”
Similarly, Huang, during Nvidia’s financial analyst day at the Consumer Electronics Show, suggested a timeframe of 15 to 30 years for the development of truly impactful quantum computers. He posited that 20 years might be a reasonable estimate. While acknowledging the transformative potential of quantum computing, both CEOs emphasized the significant technological hurdles that remain before widespread adoption.
These comments led to a significant sell-off in quantum computing stocks on Monday, with D-Wave and Rigetti experiencing declines of over 25%. Quantum Computing and IonQ also saw their share prices drop by approximately 23% and 12%, respectively.
In response to Huang’s remarks, D-Wave CEO Alan Baratz issued a statement to Quartz, asserting that the Nvidia chief had a “misunderstanding of quantum.” Baratz argued that D-Wave’s distinct approach to quantum computing has enabled the company to achieve commercial viability years ahead of its competitors. He emphasized the existence of multiple pathways to developing quantum computers and highlighted D-Wave’s current commercial success.
Tuesday’s rebound suggests that investor confidence in the long-term potential of quantum computing remains strong, despite the cautionary statements from industry leaders. The market’s reaction underscores the ongoing debate surrounding the timeline for the development and adoption of this transformative technology. While significant challenges remain, the potential for quantum computing to revolutionize various industries continues to fuel investor interest and drive research and development efforts. The fluctuating stock prices reflect the inherent uncertainties and high expectations associated with this emerging field.
