Quantum computing stocks experienced a significant decline on January 9, 2025, following comments from Nvidia CEO Jensen Huang during a keynote at CES 2025. Huang stated that practical applications of quantum technology are likely two decades away, causing a pause in a year-long upturn for the sector.
Huang estimated that the timeline for 'very useful quantum computers' could be around 20 years, with potential ranges between 15 and 30 years. This announcement impacted several companies in the quantum computing field, including Rigetti Computing, D-Wave Quantum, Quantum Computing, and IonQ, all of which saw stock prices drop by over 40%.
Collectively, these firms were projected to lose more than $8 billion in market value. Despite a strong performance in 2024, where quantum computing stocks rose at least threefold, the market reacted negatively to Huang's forecast. IonQ, valued at over $10 billion, anticipates revenue of $41.6 million for fiscal 2024, while Rigetti expects approximately $11 million.
Craig-Hallum analyst Richard Shannon emphasized the importance of government-related revenues in the coming years, suggesting that concerns over minimal revenues might overlook the potential disruptive impact of quantum computing on classical computing sectors.