Nvidia CEO Backtracks and Suddenly Bullish on Quantum Computing Stocks

Earlier this year, Nvidia CEO wasn’t so bullish on quantum computing.

At the time, during an analyst event at CES, he stated that “very useful quantum computers” were likely 15 to 30 years away, suggesting that 20 years was a reasonable estimate.”

In fact, that very statement sent Rigetti Computing (NASDAQ: RGTI), D-Wave Quantum (NYSE: QBTS), IonQ (NYSE: IONQ), and Quantum Computing (NASDAQ: QUBT) spiraling lower.

Today, those same stocks are exploding higher.

All as Nvidia CEO Jensen Huang becomes far more bullish about quantum computing — and expects they’ll start solving real-world problems in the coming years. “We are within reach” of being able to apply quantum computers “in areas that can solve some interesting problems in the coming years,” Huang added, as quoted by CNBC. “This is a really exciting time.”

That shift comes as Nvidia itself has partnered with quantum computing companies, such as Honeywell-owned Quantinuum to build out a quantum research center.

As a result of the CEO’s newfound bullishness, quantum computing stocks are rocketing higher.

Look at Rigetti Computing, for example. 

Up about 9% on the day, Rigetti Computing (RGTI) is now up to $12.26 on a volume spike to 132 million, as compared to its daily average volume of 49.6 million.

Helping, analysts at Craig-Hallum initiated coverage of the RGTI with a Buy rating and $12 price target not too long ago.

Analysts “said quantum computing has an opportunity to revolutionize the world like very few technologies can, and though its commercial impact is still years in the future, its market size and disruptive potential for classical computing makes it relevant to investors today. Rigetti has unique scaling advantages which may allow it to achieve equivalency or superiority versus its direct peers, and to achieve quantum advantage in the next few years,” added Seeking Alpha.

IONQ Inc. 

Earlier today, shares of IONQ (NYSE: IONQ) were up about $3.25 on the day. Volume also spiked to 41.1 million shares, as compared to its daily average volume of 22 million.

Again, thanks to the Nvidia CEO’s comments.

Helping, IONQ just said it would acquire Oxford Ionics. The transaction, according to an IONQ press release, “will bring together IonQ’s quantum compute, application and networking stack with Oxford Ionics’ groundbreaking ion-trap technology manufactured on standard semiconductor chips. The combined technologies are expected to deliver innovative, reliable quantum computers that increase in power, scale, and problem-solving capabilities.”

Even more impressive, the companies expect to build systems with 256 physical qubits at accuracies of about 99.99% by 2026 and advance to over 10,000 physical qubits with logical accuracies of 99.99999% by 2027.

There’s also the Defiance Quantum ETF

With an expense ratio of 0.4%, the Defiance Quantum ETF (NYSE ARCA: QTUM) tracks some of the top tech stocks, including D-Wave Quantum, Rigetti Computing, Palantir Technologies, IonQ, Alibaba Group, RTX Corp., and Intel to name just a few.

In addition, the ETF is exposed to companies at “the forefront of machine learning, quantum computing, cloud computing, and other transformative computing technologies,” as noted by DefianceETFs.com. It also tracks the BlueStar Quantum Computing and Machine Learning Index, with about 71 holdings.

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