Quantum computing stocks got a jolt this week after Microsoft’s announcement that businesses should be ready to embrace the technology starting this year.
That’s the exact opposite of comments made by Nvidia’s Jensen Huang last week, which threw some serious shade at quantum computers, triggering a brutal selloff. Huang said useful quantum computers are likely 20 years away.
Stocks in the sector have all been on a roller coaster. Rigetti and Quantum Computing soared 86% and 67% in three days, while IonQ and D-Wave gained around 50%.
The sector has been all over the map since Google’s quantum chip Willow grabbed headlines last month. Quantum Computing stock shot up over 3,000% late last year, only to fall by more than 70% in weeks.
Not for the faint of heart
Analysts on Morgan Stanley’s trading desk flagged the December frenzy, calling it “nerve-wracking.” And they weren’t wrong. The volatility is off the charts, making quantum stocks a roller coaster few investors can stomach.
The question now is whether these gains are sustainable or just another flash in the quantum pan.
While Microsoft has given the sector much-needed cred, wild swings like this make one thing clear: quantum stocks aren’t for the faint-hearted.
Edited by Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
