IonQ Stocks plunge | Quantum computing may not be the next significant advancement following artificial intelligence, as suggested by Nvidia CEO Jensen Huang. His remarks, which downplayed the potential of the technology, negatively impacted stocks within the sector on Wednesday.
Quantum Computing stocks experienced a decline following Huang’s remarks on Tuesday evening, in which he indicated that the technology is unlikely to achieve widespread adoption for several decades.
Huang stated during a question-and-answer session at Nvidia’s analyst day event, “If you were to suggest a timeline of 15 years for the emergence of highly functional quantum computers, that would likely be considered optimistic. Conversely, a 30-year timeline would be viewed as rather pessimistic. A 20-year estimate seems to be a consensus that many of us would accept.”
IonQ’s stock declined by 39% on Wednesday
As a result of these comments, IonQ’s stock plummeted by 39% on Wednesday, while Rigetti saw a decrease of 47%. Quantum Computing shares fell by 44%, and D-Wave Quantum experienced a loss of 42%.
The shares were part of a group that experienced a significant increase following the announcement by Alphabet, Google’s parent company, regarding its new quantum-computing chip, Willow, in early December.
Quantum computing utilizes the principles of quantum mechanics to address intricate problems at a pace far superior to that of conventional computers. Nevertheless, as noted by Barron’s in previous reports, smaller firms engaged in the development of this technology are expected to take several years before they can achieve substantial revenue.
In a separate development, Quantum Computing announced late Tuesday that it had reached an agreement to issue approximately 8.2 million shares at a price of $12.25 each to private investors, thereby raising gross proceeds of $100 million. On Tuesday, Quantum Computing shares closed at $17.49. IonQ
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