Investing.com -- Quantum computing stocks have recently faced a drastic fall in valuations. This comes following comments from Nvidia Corp . (NASDAQ:NVDA)'s CEO last week, indicating that viable applications for the technology are likely more than ten years away.
This statement has led to a reassessment of the sector's value, with some stocks losing over half their worth in recent trading days. Companies such as D-Wave Quantum Inc., Quantum Computing Inc., IONQ, and Rigetti Computing Inc (NASDAQ:RGTI). have all seen significant declines recently.
Still, the sentiment has improved a bit with these names trading higher in pre-market trade on Tuesday.
These companies, along with others in the sector, had seen their stock prices skyrocket in 2024, with some increasing by more than 1,000%.
The appeal of quantum computing lies in its potential to revolutionize a multitude of industries. Quantum computers possess processing power millions of times greater than traditional computers, which could lead to significant advances in areas such as drug discovery, advanced material design, and encryption.
However, the recent comments from Nvidia's Jensen Huang have highlighted a significant issue with these stocks. Despite the potential future impact of the technology, it is unlikely these companies will see substantial profits from it in the near term. This sentiment is echoed by Alphabet (NASDAQ:GOOGL) Inc., which, despite making a quantum computing breakthrough in December, acknowledged that the technology currently has no practical applications.
The quantum computing craze has also impacted companies based on their names alone. Quantum Corp (NASDAQ:QMCO)., a data management company, saw its stock price rise more than 670% in 2024, only to fall over 60% so far in 2025. Similarly, Quantum-Si Inc., a life sciences company developing protein sequencing platforms, nearly quadrupled in the last two months of 2024.
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