The words of NVIDIA's CEO Jensen Huang, stating that applications of Quantum Computing are still decades away, led to a collective sharp decline of Quantum Computing concept stocks that had become extremely popular in the US stock market since December. Additionally, the announcement of a new share issuance by Quantum Computing, a star in the field of Quantum Computing, at a high stock price can be described as adding insult to injury for the already plummeting stock price.

As of the time of writing, $Rigetti Computing (RGTI.US)$ 、 $D-Wave Quantum (QBTS.US)$ 、 $Quantum Computing (QUBT.US)$ All fell by more than 35%, $Arqit Quantum (ARQQ.US)$ 、 $SEALSQ Corp (LAES.US)$ All fell by more than 31%. $Quantum (QMCO.US)$ Fell by almost 30%.

It is understood that on Tuesday, Eastern Time, Jensen Huang, the leader of AI Chip giant NVIDIA, candidly stated during the Q&A session of Analyst Day that a 'very useful' quantum computer might still take decades to arrive. In the Q&A session, he expressed, 'If a very useful quantum computer were to appear in fifteen years, that might be too early. If we say thirty years, it might be overly pessimistic; if we talk about twenty years, I think many of us would believe that.'

Jensen Huang's recent remarks have triggered strong reactions in the Global capital markets, leading to sharp declines in the stock prices of companies associated with the quantum computing concept worldwide.

The announcement of a stock issuance by Quantum Computing, which is currently near its historical high prices, caused it to experience even larger declines during Pre-Market Trading in the U.S. The latest statement from Quantum Computing indicated that it had issued 8.16 million shares of common stock through a private placement at a price of $12.25 per share, raising a total of $0.1 billion. The deadline is January 9, 2025.

Quantum Computing stated that the net proceeds from this offering would be used for working capital and general corporate purposes. Along with the expected net proceeds and existing Cash / Money Market reserves, the company anticipates having sufficient resources to continue advancing and expanding its research and promotion of photonics, thin-film lithium niobate, and commercializable Quantum Computing technologies.

'This very successful $0.1 billion issuance pricing is far higher than our last two additional stock issuances. Since November, we have raised a total of $0.19 billion in capital,' stated Quantum Computing's Chief Financial Officer Chris Bumler. As of the time of publication, Quantum Computing's stock price had fallen 20.53% during Pre-Market Trading to $13.900.

Since November, the Quantum Computing sector has welcomed numerous positive catalysts in both industry development and the macroeconomic level, driving the stocks related to Quantum Computing in the U.S. stock market into a "bull market" mode of skyrocketing prices. This was especially the case from December when Google launched its groundbreaking Quantum Chip named "Willow," igniting the entire Quantum Computing industry. The market bets that this chip could accelerate the commercial trajectory of Quantum Computing, but Jensen Huang's latest remarks have undoubtedly reduced expectations for the commercialization of Quantum Computing. According to a statement from Google on December 9, Willow showed astonishing performance in benchmark tests, capable of completing a 'standard benchmark computation' in less than 5 minutes, while traditional supercomputers would take 10^25 years to accomplish the same task.

Under the strong catalyst of Willow, IonQ Inc has risen over 36% since December, Quantum Computing has increased by as much as 150% since December, D-Wave Quantum has risen by as much as 220% during the same period, and Rigetti Computing has seen an astonishing increase of 500% since December. The market cap of the technology giant Google has reached 2.4 trillion dollars, and its stock price has risen over 18% under the boost of the quantum wave since December.

However, it is important to note that currently, no company, including Google, has achieved any practical 'Quantum Computing' that can precisely control quantum states in a meaningful way and achieve large-scale commercialization, and we are still far from the 'final form' of this Quantum acceleration.

Currently, the quantum computing platforms offered by these quantum computing companies mainly focus on entry-level heuristic quantum computing applications, and the range of applications remains very narrow. Most of them can only solve acceleration problems closely related to specific industries and cutting-edge research and development, playing a supportive role, such as in the large-scale R&D projects of pharmaceutical and biological research engineering and physical laboratories. Currently, human technology cannot achieve precise and stable control over quantum states using a universal computing system, especially in achieving precise and controllable 'quantum entanglement,' where significant technical bottlenecks exist.

Editor/lambor