Quantum computing stocks are having a rough start to 2024: IonQ, D-Wave, Rigetti tank after Nvidia CEO predicts 20-year horizon

We’ve been told that the future is now, but it seems it’s not quite here yet—at least for quantum computing.

Quantum computing, a relatively niche sector of the tech industry, saw solid gains in the stock market last year, as companies such as Rigetti Computing (Nasdaq: RGTI), D-Wave Quantum Inc. (NYSE: QBTS), IonQ (NYSE: IONQ), Quantum Computing (Nasdaq: QUBT), and others saw share values soar. But the party is coming to a crashing halt, at least for now.

On Tuesday, Nvidia CEO Jensen Huang said that he thinks any practical use for quantum computing technology was a long way off, and likely decades away, according to reporting from Reuters. It’s worth noting that Nvidia, a chipmaker which has likewise seen share values soar largely due to increased interest and adoption in artificial intelligence and machine learning technology. Even so, when Huang speaks, investors listen—and quantum computing stocks took it on the chin on Wednesday morning after digesting his comments.

As of roughly 11 AM ET on Wednesday, shares of Rigetti Computing, D-Wave Quantum, IonQ, and Quantum Computing were all down roughly 50%.

However, it’s worth keeping things in perspective: Rigetti stock is up 735% over the past year, D-Wave Quantum shares are up 467%, IonQ shares are up 115%, and Quantum Computing shares are up almost 900%.

In effect, while quantum computing may have been seen as a tech sector that could keep propelling the market, much like AI stocks did last year, the quantum rally may be a bit further off than some investors anticipated. The segment is complicated, too—quantum computing operates on the principles of physics, rather than the classic binary system, and the technology is still largely experimental and theoretical.

As such, there aren’t commercial quantum computers available to the typical consumer on the market, and there’s no guarantee that they ever will be.