Quantum computing companies such as Rigetti, Quantum Computing Inc., IonQ, Silq, and D-Wave experienced significant stock drops on Wednesday. The market tumble was triggered by NVIDIA CEO Jensen Huang’s assertion that practical quantum computing remains a distant goal. During NVIDIA’s Analyst Day, Huang stated, “If you said 15 years for very useful quantum computers, that would probably be on the early side.” He added, “If you said 30, it’s probably on the late side. But if you picked 20, I think a whole bunch of us would believe it.”
Huang also emphasized that NVIDIA will play a crucial role in developing quantum computers and would strive to help the industry achieve practical applications, but acknowledged that commercialization remains a long way off. Experts now predict that quantum computers will become a reality within 15 to 30 years, with 20 years being the most likely timeline.
Rigetti’s stock plummeted 49% to $9.31, while Quantum Computing Inc.’s stock nosedived 49% to $8.88. Silq’s shares dropped 37% to $4.49, and IonQ crashed 45% to $27. Last year, IonQ soared 237%, while Rigetti and Quantum Computing Inc.’s stock skyrocketed by 1,449% and 1,712%, respectively.
The quantum computing sector gained momentum last year when IonQ secured a contract with the U.S. Department of Defense, and Google, under Alphabet, achieved significant technological breakthroughs.
Google’s latest Willow semiconductor, unveiled last year, demonstrated improved performance with fewer errors than its 2019 quantum computing chip.
Investors have been particularly bullish on quantum computing, viewing it as the next major tech frontier following the artificial intelligence boom, which OpenAI’s ChatGPT-3 kicked off in late 2022.
While quantum computers lag behind traditional computers in simple calculations, they show remarkable potential in specific areas like cryptography. Their ability to use quantum superposition for code-breaking has raised concerns about the future viability of existing encryption systems.
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