In brief: Recent comments by Nvidia CEO Jensen Huang triggered several stocks tied to quantum computing companies to tumble in value this week. During a Q/A session with investors at CES on Tuesday, Huang said useful quantum computers are likely around two decades away.
Addressing a question from an audience member, Huang said 15 years would probably be on the "early side" and that 30 years would likely be on the late side. "But if you picked 20, I think a whole bunch of us would believe it," he added.
Huang's comments hit quantum computing companies swiftly and sharply. As of writing, share value in D-Wave Quantum is down 43.8 percent. Rigetti Computing saw its stock dip more than 39 percent. Shares in IonQ, a quantum computing software and hardware company based out of Maryland, are down more than 40 percent. Quantum Computing Inc., which trades on the NASDAQ under the symbol QUBT, is down over 44 percent as of writing.
Also read: What is Quantum Computing?
According to Reuters, the four companies are set to lose more than $5 billion in market value. Thomas Hayes, chairman of Great Hill Capital, told the publication that any dollar chasing quantum computing stocks is not chasing AI stocks.
"Jensen threw a wet blanket on the quantum story and did everything he could to sell the AI story. It's that simple," Hayes added.
Given Nvidia's position as a dominant player in the artificial intelligence industry, it's no surprise that some would draw such conclusions from Huang's comments. But it may not be as clear cut as that.
As Huang highlighted just moments before, in the case of quantum computers, you also need classical computers to perform error correction – and they better be the fastest computer that humanity can build. "And that happens to be us," he added.
According to Huang, just about every quantum computing company in the world is working with Nvidia now. Regardless of whether useful quantum happens sooner or later, it seems Nvidia is in position to take advantage of it either way. In the meantime, it's got AI to tend to.
As for Nvidia, its stock is up a little over three percent YTD after gaining nearly 170 percent over the past year and a staggering 2,200 percent over the last five years.
