nvidia's quantum day shocker: ceo's comments trigger quantum stock plunge

2025-03-21 nvidia

Washington, D.C., Friday, 21 March 2025.
Nvidia’s CEO, Jensen Huang, caused an unexpected stir in the quantum computing sector. His remarks at Nvidia’s Quantum Day event sparked a sell-off of quantum stocks. D-Wave’s stock plummeted by 18%, and the Quantum Defiance ETF (QTUM) fell by 2%. Huang’s comments have reignited discussions about the timeline for quantum computing viability. Nvidia’s plans to integrate GPUs with quantum computing chips remain in place. The market now questions the near-term potential of quantum companies.

Quantum stock sell-off

On March 20, 2025, quantum computing stocks experienced a significant sell-off after Nvidia’s CEO, Jensen Huang, spoke at the company’s annual developer conference [1]. Huang’s comments, made during the first-ever ‘Quantum Day’ event, triggered a negative market reaction, impacting the stock values of several quantum computing firms [1]. Rigetti Computing and IonQ each saw their stock prices drop by more than 9% [1]. The average decline across quantum stocks deepened as the event progressed, reaching 13% [4]. This downturn highlights the sensitivity of quantum computing stocks to commentary from industry leaders [1][4].

Nvidia’s quantum computing initiatives

Nvidia is actively involved in quantum computing, working on integrating GPUs with chips designed for quantum systems [1]. The company plans to build the NVIDIA Accelerated Quantum Research Center (NVAQC) in Boston, near Harvard and MIT [1][2]. This center aims to foster collaboration between quantum companies and researchers [1][2]. Nvidia believes quantum computing will enhance AI supercomputers, addressing critical issues from drug discovery to materials development [2]. Despite Huang’s cautionary remarks, Nvidia remains committed to advancing quantum computing through research and development [1][2].

Market reaction and expert analysis

The market’s reaction to Huang’s statements underscores the uncertainty surrounding the commercial viability of quantum computing [1]. Needham analyst Quinn Bolton suggested that calling a quantum system a computer might set unrealistic expectations [1]. Huang himself acknowledged the potential of quantum computing but emphasized that his earlier 15-year timeline for useful technology might have been ‘on the early side’ [1]. This cautious outlook contrasts with the optimism of some quantum computing companies, like D-Wave, whose CEO, Alan Baratz, disputed Huang’s timeline [1][2].

Nvidia’s stock performance

Despite the sell-off in quantum stocks, Nvidia’s stock closed up 0.86% on March 20, 2025, but was down 0.76% in premarket trading on the same day [2]. Nvidia stock ended the week lower after the GTC conference [8]. The stock market was mixed on Friday, March 21, 2025, with Nvidia GTC as a highlight [8]. While Nvidia has wowed technologists with its advancements in artificial intelligence and accelerated computing, the company has faced some negative headlines [8]. These include a Wall Street analyst cutting the price target on Nvidia stock on March 10, 2025 [8].

Broader market context

The events at Nvidia’s Quantum Day occurred amidst broader market fluctuations [8]. Micron Technology beat expectations for its fiscal second quarter [8]. The S&P 500 closed marginally higher, the Nasdaq 100 booked a 0.4% gain, and the Russell 2000 dipped 0.6% on March 20 [7]. The benchmark US stock index posted its first weekly gain since Valentine’s Day [7]. These factors contribute to the complex environment in which Nvidia and the quantum computing sector are operating [7][8].

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quantum computing stock sell-off