Quantum Computing Shares Plummet: Understanding the Reasons
Quantum computing has been featured prominently in recent months, with stocks soaring after Alphabet's Willow announcement. Investors eager to hop onto the quantum computing bandwagon have sent shares of microcaps skyrocketing. However, a somewhat dismissive comment from NVIDIA CEO Jensen Huang, a tech industry legend, sent shares plummeting. According to data from S&P Global Market Intelligence, IonQ dropped 32.3%, Quantum Computing saw a 48.7% dip, and D-Wave Quantum suffered a 36.9% loss this week.
Jensen Huang's skepticism about the quantum computing industry emerged during a Q&A at CES in Las Vegas. He suggested that the timeline for "very useful" quantum computers may stretch anywhere from 15 to 30 years. While Huang didn't dismiss quantum computing altogether, he did express concerns about the near-term revenue growth expectations being overblown.
The response to Huang's remarks was predictable, with quantum computing enthusiasts pushing back. However, it's challenging to argue against the notion that we are still many years away from quantum computing becoming a meaningful business. Despite hefty market caps, IonQ, Quantum Computing, and D-Wave had a combined revenue of under $50 million over the past 12 months.
Addressing Huang's skepticism, IonQ's CEO, Peter Chapman, reaffirmed an optimistic outlook. He stated that IonQ is targeting revenue of nearly $1 billion by 2030, a significant leap from its current state. However, IonQ's optimism should be taken with a grain of salt, given its small size and the massive investment made by tech giants, including Nvidia, in quantum technologies.
There's no denying that quantum computing is a high-risk, high-reward opportunity. With significant advancements in technology and commercial applications still a decade away, it's not unreasonable to expect pullbacks in the near future. Nevertheless, the colossal potential of quantum computing makes it an intriguing and exciting space to monitor.
Enrichment Data Snippet:- The quantum computing market was valued at $1.79 billion in 2025, with a CAGR of 31.64% expected to raise it to $7.08 billion by 2030.- Companies are seeing commercial applications in sectors like large-scale optimization, material discovery, and computational fluid dynamics.- Quantum computing companies like IonQ are targeting revenue growth of over 70% between now and 2030.- IonQ has secured deals with clients and the U.S. Air Force Research Lab, indicating its focus on delivering commercially viable products.- Despite NVIDIA CEO's concerns about timelines and revenue growth expectations, other industry players are optimistic about the near-term capabilities of quantum computing.
- Despite NVIDIA's CEO's predictions of a lengthy timeline for "very useful" quantum computers, IonQ's CEO, Peter Chapman, remains optimistic, aiming for revenue of nearly $1 billion by 2030.
- Investors who have been purchasing microcap stocks related to quantum computing, such as IonQ, were surprised by the significant downturn this week, following a skeptical comment from NVIDIA CEO Jensen Huang.
- Despite the recent dip in stocks, some industry players remain optimistic about the near-term capabilities of quantum computing, potentially leading to another surge in investing.
- Given the potential revenue growth of quantum computing companies like IonQ, which aims for over 70% growth between now and 2030, some investors might still consider it a promising high-risk, high-reward investment opportunity for the coming years.
