Quantum Bubble𫧠Bursts: Is It Time to Short?
Reality check for quantum computing despite its beauty
Quantum Computing's Reality Check During CES 2025, NVIDIA ( $NVIDIA(NVDA)$ )CEO Jensen Huang tempered expectations around quantum computing, stating that we're "5 or 6 orders of magnitude away from being truly useful." While he envisions practical quantum computing within 15-20 years, the timeline may not align with current market enthusiasm.
The question arises:
-
Is it time to short quantum computing stocks?
1. Quantum Hype vs. Reality
Current State of Quantum Computing
-
Number of Qubits: Quantum systems remain far from scalability, lacking the stability and error correction needed for practical applications.
-
Timeline Expectations: A realistic 20-year horizon clashes with the inflated valuations in todayâs market.
Market Enthusiasm
-
2024 Surge: Quantum computing stocks skyrocketed, with some rising over 1000%.
-
End-of-Year Pullback: As investors reassess the timeline, quantum stocks experienced significant corrections.
2. Performance Snapshot of Quantum Stocks
Top Quantum Computing Stocks (2024-2025)
$Rigetti Computing(RGTI)$ $IONQ Inc.(IONQ)$ $D-Wave Quantum Inc.(QBTS)$
3. Charting the Pullback
the performance of quantum stocks (RGTI, IONQ, QBTS) from December 2024 to January 2025
4. Analyst Opinions
Bearish Outlook
-
Timeline Concerns: With 15-20 years before practical applications, current valuations may not justify the speculative nature of these stocks.
-
Short Opportunities: Some analysts view the pullback as the beginning of a deeper correction, making quantum stocks prime short candidates.
Bullish Outlook
-
Innovation Bet: Others argue that early-stage investment is necessary for breakthroughs, and the pullback offers a buying opportunity.
5. Key Questions for Investors
-
Shorting Quantum Stocks: Do Jensen Huangâs comments make quantum stocks a shorting opportunity, or is the market already pricing in delays?
-
Long-Term Potential: Would you hold these stocks despite a long timeline for quantum computing's viability?
-
Stock Selection: If youâre bullish, which quantum stocks offer the best balance of risk and reward?
6. Conclusion
A Brief Guide to Quantum Computing: Is it a worthy Cause CĂ©lĂšbre bubble waiting to burst?
The quantum computing hype has hit a reality check, with Huangâs comments resetting expectations. While the sector remains a hotbed of innovation, the road to commercialization is long.
Whatâs Your Move?
-
Short quantum stocks based on overvaluation and delayed timelines?
-
Or sit tight and wait for better entry points to bet on the future of computing?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
- tiger_cc·01-09TOPIt's time to short.1Report