Quantum stocks like Rigetti fell after Nvidia’s Huang said computers are 15 to 30 years away

Quantum computing stocks fell on Wednesday afterward Nvidia CEO Jensen Huang announced that useful quantum computers are still many years away from us.

“If you say 15 years for very useful quantum computers, that’s probably on the early side,” he said during Nvidia’s analyst day. “If you said 30, it would probably be on the late side. But if you picked 20, I think a whole bunch of us would believe that.”

Huang said he believes Nvidia will play a “very important role” in creating PCs and helping the industry “get there as quickly as possible.”

Stocks related to quantum computing fell in the wake of the comments It ignores computing down 49%, while Ion Q Fall of more than 46%. D-wave quantum It decreased by more than 48%, while Defiance Quantum and Artificial Intelligence ETF Decreased by 5.5%. Quantum computingwhich announced a stock offering to raise $100 million, fell by 50%.

“Given that valuations have become a bit high, we’re not surprised by today’s correction,” said Greg Bassuk, CEO of AXS Investments, describing the reaction as somewhat “overblown.”

“There has long been widespread consensus that the mass appeal of quantum computing is still years away, so there is no real news to support the negative news today,” he added.

The sector has received a boost until the end of 2024 with excitement around quantum computing growing after that Google It revealed its latest Willow chip, which it said performs better than its 2019 predecessor in reducing errors. Many investors have also expressed hope that this sector will be the next big tech craze since the rise of artificial intelligence in the wake of ChatGPT.

Excitement buoyed shares at the end of the year, with Rigetti and D-Wave rising 1,449% and 854%, respectively.

Proponents of quantum computing say the technology will be able to perform computational tasks that regular computers cannot, and process much larger amounts of data.

But many investors did He warned that it may be too soon To screen out relevant industry winners and real-world use cases for the technology.