Nvidia’s 'AI Godfather' forces a reset on the tech world’s next big bet: Morning Brief
Published On Jan 9, 2025, 6:00 AM
Nvidia CEO Jensen Huang's comments at CES regarding the expected timeline for practical quantum computing have caused a significant drop in stocks related to quantum computing. He indicated that useful quantum computers might still be decades away, which contrasts sharply with the market's optimistic view sparked by recent advancements from companies like Google. Stocks of Rigetti Computing, D-Wave Quantum, and IonQ experienced major declines of over 40%. This reflects investors' impatience for quicker returns and the market's sensitivity to predictions regarding future technologies.
Stock Forecasts
IONQ
Negative
The decline in quantum computing stocks indicates a strong reaction from investors regarding projections of technological advancement. Given Nvidia's pivotal role in the tech sector, its insights can heavily influence market perceptions, especially in emerging fields like quantum computing. As companies face scrutiny over timelines for groundbreaking technologies, they may struggle to maintain previous valuations. Hence, we can expect volatility in the stocks of the companies mentioned.
RGTI
Negative
With Huang's comments casting doubt on the near-term potential for quantum computing, companies like Rigetti and IonQ, which have seen enormous stock price increases, may face continued downward pressure as investors reassess their valuations and timelines. These companies are now likely viewed as overly speculative given the CEO's long-term predictions.