Quantum computing stocks are down since Nvidia CEO Jensen Huang stated that widespread applications of quantum computation were still decades away.
Investors rewarded these companies again on Wednesday, after Microsoft Corp. (NASDAQ: MSFT), made a statement that was radically different from Huang’s views on quantum computing.
“We are at the dawn of the reliable quantum computer era.” We’re on the verge of seeing quantum computers solve real problems and capture new value, wrote Mitra Azizirad, chief operations officer for strategic missions and technologies at Microsoft in a blog today.
Microsoft announced a new program on Wednesday that will help businesses prepare for a quantum era.
Quantum stocks are a result of today’s CPI data
Quantum computing stocks have also gained at the time of writing because the monthly core inflation figures helped investors to feel more comfortable about returning to risky assets on Wednesday.
The core consumer price index for December, excluding food and energy (CPI), was up by a lesser-than-expected amount of 0.2% for the entire month and 3.2% over the whole year.
Investor confidence in quantum stocks has soared today, thanks to Microsoft’s prediction that research and development on quantum computing will accelerate significantly over the next year.
Rigetti Computing shares, D-Wave Quantum shares, and IonQ’s all rose more than 20% today.
Industry experts differ on quantum computing
Microsoft executive Mitra Azizirad believes that now is the time for business leaders “to act and prepare” for the quantum age.
Since Google announced its new quantum chip, “Willow”, which offers unmatched processing speed and advanced errors correction capabilities, the stocks of quantum computing have been extremely volatile.
Industry experts such as Jensen Huang, Mark Zuckerberg, and others maintain that quantum computing applications are still decades off.
In recent weeks, this mismatch in the views of industry experts about quantum computing has made RGTI, QBTS and IONQ look like a Wild West.
Should you ignore the volatility of quantum computing stocks?
Quantum computing stocks are a risky investment, as none of them is expected to make a profit anytime soon.
Plus, the technology is still in its infancy and will face a steep battle in terms of cost reduction and scalability.
This is why Jim Cramer, a famous investor, recently compared them to the frenzied trading around gaming merchandise retailer GameStop in 2021.
In a note sent to members of Mad Money’s Investing Club recently, the host said that GME and quantum shares a common thread – speculative excitement that far exceeds reality.
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