Fear will lead to opportunity in quantum computing stocks.
On Wednesday, stocks like Rigetti Computing (RGTI) plummeted about $9 a share. Ionq (IONQ) dropped about $21 a share. The Defiance Quantum ETF (QTUM) fell about $5 a share.
All after Nvidia CEO Jensen Huang said “very useful” quantum computers are likely decades away, as noted by Bloomberg. “If you kind of 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,” Huang added. “If you picked 20, I think a whole bunch of us would believe it.”
However, don’t write off quantum computing just yet.
For one, Alphabet had a recent quantum computing breakthrough with Willow, a quantum computing ship that the company said “significantly better on a quantum computing benchmark than its predecessor did in 2019,” as noted by CNBC.
Two, we have to consider that companies like Microsoft and IBM are also working on quantum computing technology. It’s even been praised by Elon Musk and OpenAI EO Sam Altman.
Three, according to analysts at DA Davidson, “We believe Mr. Huang’s comments may have been somewhat self-serving,” the firm told Investor’s Business Daily. “Once quantum computing becomes powerful enough, it will likely replace some of the uses of GPU data centers with a much smaller footprint and much faster computation,” they added. “That means quantum computing is an existential threat to Nvidia, which it would then want to wish away.”
Four, D-Wave CEO Alan Baratz said the NVDA CEO is “dead wrong,” as quoted by CNBC.
“The reason he’s wrong is that we at D-Wave are commercial today,” Baratz told CNBC. Baratz added that companies including Mastercard and Japan’s NTT Docomo “are using our quantum computers today in production to benefit their business operations. Not 30 years from now, not 20 years from now, not 15 years from now. But right now, today.”
Sincerely,
Ian Cooper
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