Quantum Stocks Tumble: Why Rigetti, IonQ and D-Wave Are Falling

Rigetti Computing Inc. RGTI, IonQ, Inc. IONQ and D-Wave Quantum Inc. QBTS shares are moving lower on Wednesday. The weakness in quantum-related stocks comes after Nvidia Corporation NVDA CEO Jensen Huang expressed skepticism about the timeline and near-term usefulness of quantum computers.

During Nvidia’s analyst day, Huang commented, "If you said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it's probably on the late side. If you picked 20, I think a whole bunch of us would believe it."

Huang highlighted that quantum computing is well-suited for small datasets and intense computing operations, but it falls short when it comes to handling larger sets of data.

Quantum computing stocks have seen a wave of momentum from investors over the last few months. However, following Huang's remarks, investors may now be revisiting their expectations for the quantum industry.

Particularly, investors could be reassessing their outlook on the timeline for practical quantum applications which could prompt a shift in investing strategies. Investors may also start to pay closer attention to companies that can demonstrate tangible progress.

Nonetheless, quantum-related stocks are trending across various social media platforms as of Wednesday morning.

See Also: Nvidia Teams Up With MediaTek to Challenge Intel and AMD in Desktop CPU Market

Price Action: At the time of writing, Rigetti shares are trading 44.8% lower at $10.13, IonQ stock is moving 39.5% lower at $30.10 and D-Wave stock is moving 43.8% lower at $5.35, according to data from Benzinga Pro.

Image: Courtesy of IonQ, Inc.