Quantum stocks like Rigetti plunge after Nvidia's Huang says the computers are 15 to 30 years away

Quantum computing stocks fell on Wednesday after Nvidia CEO Jensen Huang stated that commercially viable quantum computers are still several years off.

When you think about when quantum computers will be very useful, chances are 15 years is a bit too optimistic, but if you pick 30 years, that's probably a bit too conservative, whereas 20 years seems like a pretty reasonable timeframe.

Huang said he believes Nvidia will play a "very significant part" in creating the computers and helping the industry "get there as fast as quickly as is possible."

Investments related to quantum computing sank after the comments, causing major drops in various companies' stock prices. Rigetti Computing plummeted 40%, IonQ fell 37%, and D-Wave Quantum's dropped over 30%. The Defiance Quantum & AI ETF also fell 4%. Quantum Computing, which was trying to raise $100 million in stock, experienced a drop of 37%.

We're not surprised to see a correction happening today when valuations have gotten a bit too high," said AXS Investments CEO Greg Bassuk, saying the market's reaction has been "more extreme than it needs to be.

"There's a widespread agreement that quantum computing won't be widely used for a number of years, so today's negative news isn't really unexpected," he said.

The sector got a boost at the end of 2024 as excitement around quantum computing grew after Google announced its latest chip, called Willow, which outperformed its 2019 predecessor in terms of reducing errors. Many investors also believed that the sector might be the next big tech trend following the surge in popularity of AI after the emergence of ChatGPT.

The excitement drove shares upward into year-end, with Rigetti and D-Wave jumping 1,449% and 854%, respectively.

to exclude from consideration those who would actually do well in the sector and real-world uses.