Korea Advanced Materials Soars After Steep Decline as Trading Volume Surges
Rigetti Computing Rebounds 47.93% on New York Stock Exchange
Speculative Funds Rush In Amid Diverging Views on Commercialization Timing
Quantum computer-related stocks, which had been plummeting following remarks by Jensen Huang, CEO of NVIDIA, surged simultaneously. This trend is similar to the superconducting material theme stocks that stirred the domestic stock market early last year. While opinions on the feasibility differ among academia and related industries, the volatility of related stocks is maximized.
According to the financial investment industry on the 16th, Korea Advanced Materials closed at 5,790 won, up 29.8% from the previous day in the domestic stock market. The trading volume reached 203.1 billion won, which was 3.6 times the market capitalization of 57.1 billion won.
In the domestic stock market, Korea Advanced Materials, considered a quantum computer-themed stock, was trading below 2,000 won just a month ago. After hitting the daily limit on the 18th of last month, the stock price surged and even reached 11,670 won intraday on the 8th. The stock price, which had risen sharply in a short period, quickly fell. From the 9th to the 14th, the stock price plunged 50.5% in just four days, dropping to the 4,000 won level. Jensen Huang’s remark that "if you choose 20 years, many people will believe it" regarding the timing of quantum computer utilization had a significant impact.
However, on the 14th (local time), Rigetti Computing, a quantum computer-related stock in the New York stock market, succeeded in rebounding 47.9%. Moreover, with the news that NVIDIA posted job openings to secure quantum computer specialists, short-term speculative funds poured into quantum computer-related stocks in the domestic market. Not only Korea Advanced Materials but also FineTec, Cowiver, and Xgate rebounded simultaneously. NVIDIA is expected to accelerate the commercialization timing through research on 'hybrid quantum computers.' Hybrid quantum computers refer to a method that combines existing supercomputer technology with quantum computer technology.
Optimistic claims about the future of quantum computers are also emerging in domestic academia and related industries. The government has also started support to strengthen competitiveness in the quantum computer field. The Ministry of Science and ICT has prepared a 'Five-Year Comprehensive Plan for Quantum Science' and launched a large-scale research and development (R&D) project to develop a 1,000 qubit-level quantum computer. On the 14th, the Korean Intellectual Property Office visited the Korea Research Institute of Standards and Science to hold a meeting to secure Korea’s competitiveness in the quantum technology field. The Standards Science Institute is a leading quantum technology institution that developed a 20-qubit quantum computer domestically for the first time last year and filed 119 quantum technology patents.
The financial investment industry is concerned about the creation of theme stocks in the stock market as opinions on the commercialization timing of quantum computers differ even in academia. Kim Seung-hyuk, a researcher at Kiwoom Securities, explained, "Quantum computers are specialized in solving optimization problems, so they lack versatility and only perform under limited conditions," adding, "The limitations of quantum computers became apparent, which caused quantum computer-related stocks to fall."
A similar situation occurred in the domestic stock market in the past. After the Quantum Energy Research Institute claimed to have developed a room-temperature, ambient-pressure superconductor in 2023, the global academic community presented opinions on its feasibility. The stock price of Shinsung Delta Tech, a related stock, repeatedly surged and plunged, and it nearly tripled early last year. Regardless of feasibility, the more attention it received, the greater the corporate value became.
A financial investment industry official advised, "Theme stocks related to new technologies tend to have greater volatility as interest grows," warning, "It is difficult to predict stock prices, so the possibility of losses is also high."
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