Fear will lead to opportunity in quantum computing stocks.
On Wednesday, stocks like Rigetti Computing (RGTI) plummeted about $9 a share. Ionq (IONQ) dropped about $21 a share. The Defiance Quantum ETF (QTUM) fell about $5 a share.
All after Nvidia CEO Jensen Huang said “very useful” quantum computers are likely decades away, as noted by Bloomberg. “If you kind of said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it’s probably on the late side,” Huang added. “If you picked 20, I think a whole bunch of us would believe it.”
However, don’t write off quantum computing just yet.
For one, Alphabet had a recent quantum computing breakthrough with Willow, a quantum computing ship that the company said “significantly better on a quantum computing benchmark than its predecessor did in 2019,” as noted by CNBC.
“Willow is the second milestone in a six-step strategy to develop quantum computers that can perform useful applications, Google said. The chip has about 100 qubits, but Google is planning to eventually build a system with 1 million qubits,” they added.
We also have to consider that companies like Microsoft and IBM are also working on quantum computing technology. It’s even been praised by Elon Musk and OpenAI EO Sam Altman.
In short, use the weakness in quantum computing stocks as a long-term buy opportunity.
After Huang’s statements, it’ll be interesting to see if Street firms come out in defense of the down, but far from out quantum computing stocks.
There’s Significant Potential for Quantum Computing
Remember, quantum computing will be a massive game-changer.
With it, the world may be able to solve problems far too complex for typical computers within minutes, or even seconds.
It could even be used to discover new drugs, quicker. For example, according to ZDNet.com, the discovery of new drugs relies on molecular simulation, which is complex and time-consuming with all of the calculations needed. “It’s expected that modeling a molecule with only 70 atoms would take a classical computer up to 13 billion years,” they added. Meanwhile, a quantum computer may be able to figure it all out in minutes.
Quantum computing may even be able to help advance artificial intelligence, machine learning, financial modeling, cybersecurity, and batteries.
Plus, global governments are investing in quantum computing. According to the State of Quantum 2024, more than 30 governments have already made commitments of more than $40 billion to quantum technologies over the next 10 years.
