On Wednesday, Nvidia (NVDA) CEO Jensen Huang commented that quantum computing is 15 – 30 years away before it is commercially viable. The executive, who sells graphics cards (or GPUs), expectedly, is bearish on CPUs.
The comment, along with Quantum Computing (QUBT) selling $100 million in shares, sent the sector lower. QUBT stock lost 43.34%. IonQ (IONQ) dropped by an astounding 39% on the day, while Rigetti Computing (RGTI) lost 45.4%. On CNBC, D-Wave (QUBT), whose stock lost 43.3% on Jan. 8, said that Huang, who runs a $3.4 trillion company, was “dead wrong.” D-Wave posted revenue of $1.9 million in the last quarter, down from $2.6 million the prior year.
Quantum Computing is a promising technology for the decoding encryption market. It is useful for large-scale simulations. Companies in the weather business or who need complex model simulations would benefit from quantum computers.
For over a year, however, artificial intelligence has been the technology that companies are betting on. Nvidia is ramping up sales of Blackwell AI servers. Profit margins will expand as revenue grows again this year.
Your Takeaway
Nvidia will grow its market share in AI while considering the quantum computing market. The firm needs corporations to allocate funds for AI hardware over quantum computing.
Investors should be wary of investing in speculative quantum computing stocks that do not earn a profit.
