Quantum Computing Stocks Plummet Following Nvidia's Warning

Quantum computing stocks have experienced significant volatility over the past few months. Initially, there was a surge of optimism that helped drive their prices up. However, as 2025 began, this positive sentiment dwindled when Nvidia's CEO, Jensen Huang, shared his gloomy outlook on the market. His comments sent shockwaves throughout the quantum sector, resulting in substantial financial losses for the largest players in this space.

In late 2024, excitement around quantum computing stocks peaked, fueled by the increasing demand for generative AI applications. Innovations, such as Google's state-of-the-art chip, demonstrated the technology's immense capabilities by solving complex problems at remarkable speeds. This environment created a sense of euphoria among investors and pushed stock prices to record highs.

However, the optimism proved short-lived. Data from AltIndex.com indicates that the combined stock value of the five largest quantum computing companies fell by nearly $11 billion in just nine days, from January 4 to January 13, 2025.

Massive Decline for Rigetti Computing

Since Nvidia first highlighted its anticipated profits from the AI sector in 2023, the company has been a leader in the tech market. Nvidia's impact on the AI and GPU markets has been significant, with its actions affecting the broader technology landscape, including quantum stocks.

Jensen Huang's comments on the uncertain prospects for quantum computing further contributed to the decline. Following his statements, major players in this space, including IBM, Rigetti Computing (RGTI), D-Wave Quantum (QBTS), Quantum Computing (QUBT), and IonQ (IONQ), saw their stock values drop dramatically. Within four days, these companies collectively lost around $8 billion, and by January 13, the overall loss grew to an astounding $10.9 billion, with stocks experiencing declines ranging from 30% to 50%.

Statistics revealed that Rigetti suffered the most significant blow, with its stock value diving by 53% over the nine-day period, resulting in a $2.8 billion loss. Additionally, sentiment regarding Rigetti has decreased sharply; its ranking on key investor platforms fell from a score of 82 at the start of January to just 57.

Quantum Computing ranked second in losses, experiencing a 48% drop and a valuation decline of $1.1 billion. D-Wave Quantum and IonQ faced stock reductions of about 30%, incurring losses of $910 million and $3.3 billion, respectively.

Shift in Investor Sentiment

The rapid changes in investor sentiment are common in the quantum computing market, driven by technological advancements and expert analyses. Nevertheless, the repercussions of Nvidia’s recent comments were particularly severe.

According to the AltIndex tracking platform, which analyzes various data points, including social media sentiment and Google trends, the sentiment scores for the top ten quantum stocks have all dropped significantly over the past two weeks. SEALSQ Corp (LAES) suffered the largest decline, with its AI sentiment score plummeting 42% to 54 out of 100 points. D-Wave Quantum and Rigetti Computing followed closely, both seeing approximately 33% decreases in their scores. While Quantum Computing maintained the highest AI score among quantum stocks at 78 points, it also experienced a significant 27% decline during this turbulent period. In contrast, Teradyne had the lowest AI score of 52 points in this sector.

Quantum, Stocks, Nvidia