Tailwind for Quantum Startups: Stocks Recover After Critical Voices

The stocks of quantum computing companies experienced a significant upswing on Tuesday afternoon following a massive sell-off. This was due to critical comments from leading tech industry CEOs who expressed skepticism about the near-term practical applicability of the technology. Rigetti Computing saw an increase of nearly 19%, while D-Wave rose by 7% and Quantum Computing gained more than 3%. Previously, statements from Mark Zuckerberg, CEO of Meta, suggesting that 'very useful' quantum computing applications would likely not be available for mass use for more than a decade, had impacted stock prices. Nvidia's CEO Jensen Huang also predicted at CES in Las Vegas that tangible applications of quantum computing would not be expected for 15 to 30 years, which had caused stock prices to fall by about 40%. In contrast, Alan Baratz, CEO of D-Wave, emphasized that his customers are already using quantum computers for operational purposes. Solutions for material simulation have been demonstrated that classical computers — including the massively parallel GPU systems used by Nvidia — could not handle. Recently, quantum computing stocks gained momentum as technological advances and growing investor interest invigorated the market. In November, Amazon launched a consultancy program to prepare for quantum computing, while the U.S. government introduced legislation in December to promote quantum research. Google also launched a new quantum computing chip named Willow. Baratz dismissed the notion that the hype around quantum computing stocks poses similar dangers to the dot-com bubble. He is convinced: 'Quantum technology is already real today and will become increasingly valuable in the future.' Although D-Wave stocks have recovered, the price remains below half of its value from two weeks ago. Nonetheless, shares have risen nearly 440% compared to the previous year.