In high-tech industry and financial markets a single misstep or careless remark can lead to significant consequences. Jensen Huang, CEO of Nvidia, found himself in the spotlight when his comments triggered noticeable fluctuations in the financial markets, affecting both the quantum computing sector and Nvidia’s own reputation.
It all started when Huang, speaking with reporters about the further growth of quantum computing technologies, expressed his belief that market expectations in this area were overly optimistic. He suggested it could take another 15-30 years before a practical quantum computer is created. This statement caused a significant drop in the stock prices of several quantum technology companies. For example, Rigetti Computing shares declined by around 40%, IonQ lost about 35%, and D-Wave Quantum fell over 30%. Quantum Computing, which had recently announced a $100 million stock offering, took a particularly hard hit, with its shares plummeting by roughly 37%. Investors tracking these companies through stock screeners quickly noticed the dramatic downturn.
These events were even more striking given the surge in investor interest in quantum computing at the end of 2024. At that time, Google’s announcement of its Willow quantum processor sparked market excitement, driving up the share prices of many companies in the sector. For example, Rigetti and D-Wave saw their stocks skyrocket by more than 1400% and 800%, respectively.
Alan Baratz, CEO of D-Wave Quantum, strongly disagreed with Huang’s assessment of the quantum computing market prospects. He pointed out that companies like 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 continues to struggle financially, with its sales dropping 27% to $1.9 million in the last quarter compared to the previous year.
At the same time, Huang also faced backlash over a bold claim about Nvidia’s new graphics card, GeForce RTX 5070. He stated that the $549 card would deliver performance comparable to the $1,599 GeForce RTX 4090. These words sparked widespread debate online. Nvidia soon had to clarify its statement, explaining that such a performance level is achievable only through its AI-powered Multi Frame Generation feature. This explanation added some validity to Huang’s claim but came with an important caveat.
Nvidia also introduced its DLSS 4 AI scaling technology alongside the new graphics cards. This technology features Multi Frame Generation, which can use artificial intelligence and tensor GPU cores to generate up to three additional frames for each traditionally rendered frame. This builds upon the Frame Generation feature introduced in DLSS 3, which added one extra frame per GPU-rendered frame. However, this new feature will only be available on GeForce RTX 5000 series graphics cards.
When Huang talked about performance, he was referring solely to frame rates, neglecting a critical aspect: image quality. Independent reviews of the GeForce RTX 50-series will ultimately reveal how DLSS 4 and the new frame generation technology perform in real-world scenarios.
This situation did not go unnoticed by Nvidia. While the company’s stock didn’t fall as sharply as quantum computing stocks, it still experienced a slight decline. However, Nvidia’s share price remains stable within the $132–$150 range.
These events highlight the importance of cautious communication for leaders in technology and business. A single word, even with the best intentions, can lead to far-reaching financial repercussions.
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Nvidia CEO’s Comments Shake Financial Markets