Quantum Bubble🫧 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 today’s 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 Huang’s 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 you’re 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 Célèbre bubble waiting to burst?

The quantum computing hype has hit a reality check, with Huang’s comments resetting expectations. While the sector remains a hotbed of innovation, the road to commercialization is long.

What’s 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?

Surging 50%! Is the Spring of Quantum Computing Back?

After consecutive declines, quantum computing stocks have surged more than 50% over the past two days. RGTI jumped nearly 70%, while QUBT soared 55% in a single day yesterday. --------------------- Is the spring of quantum computing back? With the market warming up and rate cut expectations rising, is the meme stock frenzy about to restart? Do you have confidence in the upcoming rebound? What's your target price?

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