Quantum computing stocks slump after Nvidia CEO Jensen Huang announces “AI supercomputers” in partnership with DOE
Quantum computing stocks Rigetti Computing, IonQ, D-Wave Quantum, and Quantum Computing initially popped when Nvidia CEO Jensen Huang unveiled a new architecture called NVQLink to connect quantum computers with GPU supercomputers to aid in error correction, calibration, control, and simulations.
“Working together, the right algorithms running on the GPUs, the right algorithms running on the QPUs, and the two computers working side-by-side. This is the future of quantum computing,” Huang said.
Two of these stocks, Rigetti Computing and IonQ, were listed as “partners contributing” to this new tech in a press release.
However, the stocks then all reversed course to tumble into the red when Huang said, “Today, we’re announcing that the Department of Energy is partnering with Nvidia to build seven new AI supercomputers to advance our nation’s science.”
There may be some conflation of “AI supercomputer” and “quantum computer” going on here. This is not necessarily a competing product, but rather two things that are supposed to work hand-in-hand!
“It’s surprising to see the misread here,” said David Williams, who covers quantum computing stocks as an analyst at Benchmark Co. “This should be a positive, the ability for QPUs and GPUs to work together.”
He also flagged how Huang’s remarks from earlier this year about the timeline for quantum computers to be “very useful” prompted a nosedive in pure-play stocks across the industry — comments that were later walked back as those stocks recovered.
As previously discussed, quantum computing stocks spent many a day in recent months going up (often on no news at all!), and now appear to have gone down based on a seemingly imperfect interpretation of what appears on the surface to be fairly good news. And it’s noteworthy in and of itself that there seems to be a bit of a vibe shift, with traders looking for excuses to sell after having spent a long time looking for any excuse to buy.
