Shares of quantum computing companies rise after Nvidia CEO, Jensen Huang during the interview today signalled, that quantum computing technology is one step closer to the major 'inflection point', and will be able to resolve some important problems in a few years from now. That information is making investors optimistic (again) about the future of American quantum companies such as IONQ (IONQ.US, 5% up in premarket) or Rigetti Computing (RGTI.US, 7% up in premarket). Shares of Quantum Computing (QUBT.US) surge the most, up 9% in premarket.
Quantum computing companies valuations are extremely vulnerable to comments from BigTech or important 'tech' persons, as those firms are still not profitable. However, the market awaits that some of those companies will earn a lot of money, from the 'next' technology revolution. As for now, it's still unclear when quantum technology will be widely adopted and which business models will succeed. But the market has to adopt and investors see quantum companies as still 'early businesses', paying a significant premium in valuation for future earnings potential.
Source: xStation5
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