Quantum computing stocks collapsed in the early part of January, thanks in part to comments from the CEO of Nvidia. The companies have promising technology, but it is still many years away from commercialization.

Quantum-computing stocks tumbled Monday following comments from Meta Platforms CEO Mark Zuckerberg that quantum is far from being a “practical paradigm.”Shares of D-Wave Quantum and Rigetti Computing fell 31% and 29%,

D-Wave, Rigetti Computing and Quantum Computing shares are now down by more than half on the year after critical commentary from tech executives.

Quantum Computing didn't have any news of its own to report, but the company is even smaller than D-Wave, with less than $1 million in revenue over the last four quarters. Its stock has soared even higher than D-Wave's over the last year, a disconnect that could lead to a continued decline in Quantum Computing's shares.

Quantum stocks like Rigetti, IonQ and D-Wave Quantum saw steep losses after Nvidia CEO Jensen Huang said quantum computers are decades away.

Wave fell sharply after Nvidia’s Jensen Huang said that “very simple quantum computers” could be 20 years away.

Investors and traders will take their cue from the round numbers. The stock is likely to break back below $10 followed by a decline to $7.50 and then possibly $5. Each of these price levels will see investors and traders step in to “Buy the Dip” on the way down.

Also, in late November 2024, The Senate advanced the Department of Energy (DOE) Quantum Leadership Act of 2024, proposing $2.5 billion over 5 years to fuel US quantum R&D. Notably, the bipartisan bill emphasizes quantum networking, domestic manufacturing, and public-private partnerships to ramp up quantum innovation.

As with any Discovery Stock, investors are looking to the price and the potential of the stock, not the fundamentals. As it stands now, IonQ has the benefit of round numbered support from the $30 price. Shares recently saw support at $40 on their ascent and then resistance at $50, displaying the effect of round-numbered prices.

Quantum computing stocks are plunging again after another major tech leader cast doubts on the technology’s usefulness in the near future.