Shares of D-Wave Quantum Inc. (QBTS) fell sharply by 5.25% in pre-market trading on Friday, following comments from Nvidia CEO Jensen Huang that tempered expectations around the commercial viability of quantum computers in the near future.
At the CES convention in Las Vegas, Huang stated that "very useful quantum computers" are likely 15 to 30 years away, with 20 years being a reasonable estimate shared by many experts. His remarks sent shockwaves through the quantum computing sector, triggering a sell-off in related stocks.
D-Wave Quantum, a leading player in the quantum computing space, was among the hardest hit. The company's CEO, Alan Baratz, defended its offerings, saying D-Wave's services are being used by clients like Mastercard "not 30 years from now, today." However, investors remained skeptical, driving QBTS shares down 5.25% in pre-market trading.
Adding to the bearish sentiment, infamous investor Martin Shkreli, known as the "Pharma Bro," took a short position in QBTS and recommended shorting the stock. Shkreli argued that quantum computing stocks are "humorously overvalued" and resemble the dot-com bubble, with downside potential of 90% or more for some companies in the sector.
