Quantum computing stocks faced a significant sell-off on Monday, fueled by comments from prominent tech CEOs suggesting that practical applications for quantum technology remain distant. Meta Platforms CEO Mark Zuckerberg, during an appearance on Joe Rogan's podcast, remarked that the utility of quantum computing is still years away. His sentiments were echoed by Nvidia CEO Jensen Huang, who estimated that functional quantum computers might be 15 to 30 years away. This skepticism led to a sharp decline in the shares of leading quantum computing companies.
Quantum computing stocks, which had experienced a remarkable surge in 2024, saw a downturn as Rigetti Computing and D-Wave Quantum each plummeted by 20%. IonQ also saw its shares decrease by more than 9% on the same day. The previous boom in quantum stocks was largely driven by investor enthusiasm and expectations that the technology could follow in the footsteps of artificial intelligence as the next technological revolution. Alphabet's announcement of its promising Willow chip had further heightened interest and investment in the sector.
Zuckerberg's remarks came at a critical time.
"I'm not really an expert on quantum computing, but my understanding is that's still quite a ways off from being a very useful paradigm," – Mark Zuckerberg.
These comments, combined with Huang's timeline estimation, reinforced existing concerns about the realistic timeline for quantum computing advancements. Many industry observers believe that practical quantum technology is likely "a decade plus out."
Despite the recent setbacks, the year 2024 was a landmark period for quantum computing investments. Investors rallied behind the technology with fervor, driven by the potential it represented as the next big innovation after AI. Remarkably, shares of Rigetti and D-Wave saw increases of 1,449% and 854%, respectively, during that year. However, the recent cautionary statements have now cast doubt on the immediate viability of quantum computing as a market force.