D-Wave, Rigetti And Other Quantum Computing Stocks Sink Pre-Market After Nvidia’s Jensen Huang Downplays Near-Term Prospects: Retail Mood Deflates

Quantum computing stocks that rallied strongly in late 2024 amid advancements in the technology have started the new year on a volatile note. Following Tuesday’s retreat, triggered by broader market weakness, these stocks are poised to open sharply lower during Wednesday’s session. 

The premarket slide may be traced back to comments by Nvidia Corp. ($NVDA) CEO Jensen Huang when answering questions during Tuesday's Analyst Day. 

Huang Spoils Party

Evercore ISI analyst Mark Lipacis asked the high-profile executive about Nvidia’s strategy for quantum computing and how quantum computing differs from the accelerated computing platforms Nividia has.

According to the transcript made available by Koyfin, Huang said quantum computing is useful for small data, big compute, and big combinational compute problems but isn’t suitable for large data problems. 

He said a classical computer, along with the quantum computer, is needed for error correction. Since the classical computer has to be the fastest, Nvidia is perfect for the classical part of classical-quantum, he added.

Huang believes that it might take 15 to 30 years to develop very useful quantum computers, with 20 years being a more credible timeframe.

The Nvidia CEO’s view echoes the finding of management consultancy firm Boston Consultancy Group that the quantum computing industry will grow through three phases, with full-scale fault tolerance likely only after 2040.

Sell-Off Accelerates

Shares of Berkeley, California-based Rigetti Computing, Inc. ($RGTI), a full-stack quantum computing company that has operated quantum computers over the cloud since 2017, fell 22.73% to $14.21 as of 7:28 a.m. ET in premarket trading. Rigetti stock lost 5.74% on Thursday.

But it rose a whopping 1,441% in 2024.

RGTI sentiment and message volume January 8, 2025, premarket as of 7:28 am ET | Source: Stocktwits

Sentiment toward Rigetti stock turned to ‘bearish’ (29/100) from ‘neutral’ a day ago, with message volume rising to a ‘high’ level.

D-Wave Quantum, Inc. ($QBTS) stock was down 20.31% at $7.61 in Wednesday’s pre-market, following a 6.46% pullback in the previous session. The  Palo Alto, California-based provider of quantum computing products, software, and services has seen its share surge by 855% in 2024.

QBTS sentiment and message volume January 8, 2025, premarket as of 7:28 am ET | Source: Stocktwits

Retail mood toward D-Wave stock stayed ‘neutral’ (46/100), although message volume improved to ‘high.’

Shares of Quantum Computing, Inc. ($QUBT), an integrated photonics company that provides quantum machines, plunged 20.24% to $13.95 in pre-market trading. The stock has gained 1,719% in 2024.

QUBT sentiment and message volume January 8, 2025, premarket as of 7:28 am ET | Source: Stocktwits

Sentiment toward Quantum computing stock has flipped to ‘bearish’ (34/100) from ‘bullish,’ accompanied by an increase in message volume to ‘high.’

IonQ, Inc.'s ($IONQ) stock fell 11.88% to $44.70 in premarket trading. College Park, Maryland-based IonQ manufactures high-performance quantum computers capable of solving complex commercial and research use cases. Its latest quantum computer, IonQ Forte, boasts 36 algorithmic qubits.

IONQ sentiment and message volume January 8, 2025, premarket as of 7:28 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward IonQ deteriorated to ‘extremely bearish’ (23/100) from ‘bullish’ a day ago, with message volume at ‘extremely high’ levels.

In 2024, IonQ stock rose 237%.

Arqit Quantum, Inc.’s ($ARQQ) fell 18.85% to $28.97in the pre-market on top of Tuesday’s 8.46% retreat. The U.K.-based player in quantum-safe encryption has seen its shares surge 228% in 2024.

ARQQ sentiment and message volume January 8, 2025, premarket as of 7:28 am ET | Source: Stocktwits

Arquit Quantum stock elicited a ‘bearish’ mood (27/100) from the retail community on Stocktwits, down from the ‘neutral’ sentiment that prevailed a day ago. Message volume remained muted.

Speculative Bubble

An ongoing Stocktwits poll that has garnered responses from 7,300 platform users so far showed that 52% of the respondents think ‘’speculative hype’’ drives investor sentiment toward quantum computing stocks. 

Unique tech advantage and artificial intelligence (AI) partnerships were mentioned by 22% and 17% of the respondents, respectively.

Merely 8% said government backing supported these stocks.

The Defiance Quantum ETF ($QTUM) was down 2% at $82.65 in pre-market trading. IonQ, Rigetti and D-Wave were among the top ten trending stocks on Stocktwits.

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