Quantum Computing Stocks Plummeting... Due to Jensen Huang's 'These Words'

"Commercialization of Quantum Computing to Take Decades"
Losses Inevitable Amid Intense Buying by Seo-hak Gaemi Investors

Quantum computing-related stocks, which had shown explosive gains on the U.S. New York Stock Exchange, are now experiencing a sharp decline. This follows remarks by Jensen Huang, CEO of Nvidia, who stated that it will take decades for a useful level of quantum computer to be commercialized.

UPI Yonhap News

On the 7th (local time) in the New York Stock Exchange, shares of IonQ and Rigetti Computing fell by 2.9% and 5.74%, respectively. Other quantum computing-related stocks such as Quantum Computing (-3.32%), D-Wave Quantum (-6.46%), and Akita Quantum (-8.46%) also declined one after another. In after-hours trading, these stocks are showing double-digit percentage drops.

Bloomberg News analyzed that CEO Huang's remarks on quantum computing that day led to this sharp decline. At a global press conference held in Las Vegas, USA, Huang said, "If it takes 15 years for a very useful quantum computer to emerge, that would probably be considered early, and 30 years would be considered late." He added, "If it takes 20 years, I think many of us would believe it."

Quantum computing-related stocks had surged explosively last month on expectations of commercialization following Google's announcement of the development of the quantum chip 'Willow.' Quantum computing refers to advanced technology that uses quantum mechanical principles to process calculations at speeds overwhelmingly faster than conventional computers. It is attracting attention as a technology expected to bring revolutionary progress in a wide range of fields including artificial intelligence (AI), medicine, and encryption.

Since quantum computing-related stocks were heavily purchased by foreign investors known as Seohak Gaemi, domestic investors are expected to face inevitable losses. According to the Korea Securities Depository, domestic investors net purchased $863.75 million and $1.42518 billion worth of IonQ and Rigetti Computing shares, respectively, from the 8th of last month to the 7th of this month.