Quantum computing, which Nvidia CEO Jensen Huang dismissed this week as a long-term play, causing IonQ stock and others to crash, is in fact an existential threat to the AI powerhouse, an analyst said Wednesday.
Huang created a stir by saying quantum computing won't be "very useful" for 15-30 years, triggering a sell-off in shares of companies like IonQ and Rigetti Computing. But the Nvidia CEO's remarks were dismissed as "self-serving" by Gil Luria, head of technology research at DA Davidson, which has a buy rating on IonQ. IonQ stock plunged more than 40% on Wednesday.
"We believe Mr. Huang's comments may have been somewhat self-serving," Luria told Investor's Business Daily.
Huang suggested during an Nvidia analyst event that quantum computing, which relies on quantum mechanics to take on problems deemed too challenging for traditional computer technology, simply isn't ready for prime time.
"If you kind of said 15 years for very useful quantum computers, that would probably be on the early side. If you said 30, it's probably on the late side," Huang said. "If you picked 20, I think a whole bunch of us would believe it."
Quantum Computing's 'Existential Threat' To Nvidia
But Luria argued that, on the contrary, quantum computing will be a major trend in tech in as early as five years and poses a serious threat to Nvidia.
"Once quantum computing becomes powerful enough, it will likely replace some of the uses of GPU data centers with a much smaller footprint and much faster computation," Luria said. "That means quantum computing is an existential threat to Nvidia, which it would then want to wish away."
DA Davidson initiated coverage on IonQ stock in December, saying company "represents a compelling pure-play investment positioned to capitalize on quantum computing's rapid growth, driven by increasing inadequacy of classical computing for solving complex problems."
