In the high-tech industry and financial markets, one mistake or careless remark can lead to disastrous consequences. Nvidia CEO Jensen Huang found himself in the spotlight when his comments sparked notable volatility in financial markets, impacting both the quantum computing sector and Nvidia’s own reputation.
It all started when Huang, while speaking with reporters about the further growth of quantum computing technologies, expressed his belief that market expectations in this area were overly optimistic. He noted that it could take another 15 to 30 years before a practical quantum computer is created. This statement caused a significant decline in the stock prices of many quantum technology companies. For example, Rigetti Computing shares fell about 40%, IonQ lost about 35%, and D-Wave Quantum shares fell more than 30%. The quantum computing company, which recently announced a $100 million stock offering, took a particularly hard hit, with its shares falling nearly 37%. Investors follow these companies by: Stock screens I quickly noticed the dramatic shrinkage.
These events were even more surprising given the increased investor interest in quantum computing at the end of 2024. At that time, Google’s announcement of its project Quantum processor willow It sparked a wave of excitement in the market, causing the share prices of many companies in the sector to rise. For example, Rigetti and D-Wave saw their shares skyrocket by more than 1,400% and 800%, respectively.
Alan Baratz, CEO of D-Wave Quantum, strongly disagreed with Huang’s assessment of the quantum computing market’s prospects. He noted that companies such as Mastercard and Japan’s NTT Docomo are already using D-Wave’s quantum computers in production to improve their business operations. However, despite this usage, D-Wave is still struggling financially, with its sales falling 27% to $1.9 million in the latest quarter compared to the previous year.
At the same time, Huang also faced backlash for a bold claim about Nvidia’s new graphics card, the GeForce RTX 5070. He stated that the $549 card would provide similar performance to the $1,599 GeForce RTX 4090. These words sparked widespread controversy online. Nvidia quickly had to clarify its statement, explaining that this level of performance can only be achieved through the AI-powered Multi Frame Generation feature. This explanation added some validity to Huang’s claim but came with an important caveat.
Nvidia also introduced DLSS 4 AI scaling technology alongside the new graphics cards. This technology features multi-frame generation, which can use AI and tensor GPU cores to create up to three additional frames for each traditionally rendered frame. This builds on the frame generation feature introduced in DLSS 3, which added one additional frame for each frame rendered by the GPU. However, this new feature will only be available on GeForce RTX 5000 series graphics cards.
When Huang talked about performance, he was only referring to frame rates, ignoring an important aspect: image quality. Independent reviews of the GeForce RTX 50 Series will eventually reveal how DLSS 4 and the new frame generation technology perform in real-world scenarios.
This situation has not gone unnoticed by Nvidia. While the company’s shares have not fallen as sharply as quantum computing stocks, they are still seeing a slight decline. However, Nvidia’s stock price remains stable within the $132-150 range.
These events highlight the importance of careful communication for technology and business leaders. A single word, even with the best intentions, can lead to far-reaching financial repercussions.
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