Quantum computing stocks just hit a wall. Rigetti (RGTI, Financial), D-Wave Quantum (QBTS, Financial), Quantum Computing (QUBT, Financial), and IonQ (IONQ, Financial) collectively lost over $8 billion in market value after Nvidia (NVDA, Financial) CEO Jensen Huang dropped a reality check: quantum computing's practical use is likely 20 years away. That's right—two decades. This puts the brakes on a sector that was riding a massive high last year thanks to a headline-grabbing breakthrough at Google (GOOG, Financial). While these companies hold big potential in national security and government contracts, their current revenues are tiny, leaving investors skittish about dilution risks. Huang's call underscores a tough truth: real disruption in classical computing is still years out.
Meanwhile, the U.S. government is doubling down on its mission to curb AI chip exports, aiming to block adversaries like China and Russia from accessing cutting-edge technology. The latest round of restrictions, expected this week, creates a tiered system that favors U.S. allies while limiting global chip access. Nvidia, a key player in AI hardware, has voiced strong objections, arguing the move could stifle economic growth and jeopardize U.S. leadership. The stakes are high: controlling AI technology is about more than profits—it's about staying ahead in the global power game.
But don't count Nvidia out. CEO Jensen Huang is still playing the long game, unveiling the GB10 superchip at CES 2025, promising to bring personal AI supercomputers to the masses. Huang also highlighted Nvidia's $5 billion self-driving car business, which he sees as just the tip of the iceberg in a trillion-dollar industry. And let's not forget AI's transformative potential in gaming, robotics, and beyond. With demand for its chips soaring and a track record of delivering on innovation, Nvidia's not just surviving the turbulence—it's shaping the future of tech.
