This week, Jensen Huang, Nvidia’s (NVDA) CEO, took the stage for a question-and-answer session at the Consumer Electronics Show (CES) in Las Vegas. Consequently, quantum computing stocks have taken a hit, and some will even presume that the entire hyperball has burst in a glamorous fashion. Companies like D-Wave Quantum (QBTS), Rigetti (RGTI) Computing, Quantum Computing Inc. (QUBT), and IonQ (IONQ) saw their shares nosedive and suddenly found themselves on the defensive. The question arises – Does he really believe his own words, or does the fast-developing industry pose genuine fear for his company’s future success?
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What Did He Say?
Simply put, Huang doesn’t think quantum technology is a viable option for the near term. “Ten years is too soon… while thirty is too late.” He concludes that a 20-year time frame seems reasonable enough. Huang also pointed toward the field’s current limitations and challenges.
Meta’s (META) CEO, Mark Zuckerberg, apparently didn’t want to miss the party. Speaking on the Joe Rogan Experience podcast, he said he thinks we’re still a decade or more away from its actual utility. These comments spooked investors and led to a sharp decline in stock prices: D-Wave Quantum was down 31.4%, Quantum Computing Inc. was down 24.7%, and Rigetti Computing was down 25.5%.
“Dead Wrong”
D-Wave’s CEO, Dr. Alan Baratz, felt the need to intervene with his reply to Huang, which could be summarized into two words: “Dead wrong.” He then highlighted the company’s recent wins and its commitment to pushing the boundaries of quantum computing. He clarified that while there are challenges, D-Wave is making serious progress. Its quantum technology is already being used commercially by companies like Mastercard (MA) and Japan’s NTT Docomo to enhance their business operations.
D-Wave’s Recent Moves
D-Wave announced that its bookings for Fiscal year 2024 would top $23 million, an impressive 120% increase from last year. It also sold its first-ever on-premise advantage quantum computing system, boasting over 5,000 qubits and 15-way connectivity. This system is the world’s largest quantum computer. Customers who buy it get full access to all its features, which is a big deal for research centers, academic institutions, and businesses looking to stay ahead of the curve. This move shows growing interest in D-Wave’s technology, especially from those who want to integrate quantum computing into their infrastructure.
Conclusion
Even though the decline in quantum stock can deflate some souls, it’s important to remember that quantum computing is progressing exponentially, according to some industry experts. They agree there’s still a long way to go, but the advancements suggest we might see commercialized quantum technology sooner than expected. It can also be argued that Huang’s comments reflect the real fear of quantum technology’s threat to Nvidia’s business, so he felt the need to speak out and temper the excitement that could rain on his company’s ongoing parade.
