On Thursday, D-Wave Quantum’s (QBTS) CEO Alan Baratz commented that Nvidia’s Jensen Huang was “dead wrong” about quantum computing after comments from the CEO of NVIDIA roiled Wall Street on Wednesday.
D-Wave quantum shares traded higher in closed session trading on Thursday after the company’s CEO told CNBC that the NVIDIA CEO, Jensen Huang, was wrong about his claim that quantum computing was 15-30 years away.
On Wednesday, Huang made his comments at an NVIDIA investors event sending quantum computing stocks into a selling spiral. Most stocks in the industry lost 40% or more.
Companies like D-Wave (QBTS), Rigetti Computing (RGTI) and IonQ Inc. (IONQ) were punished as investors dumped shares at a massive rate.
Shares of all four companies have been on incredible rallies for the last two months following Google’s announcement of their Willow quantum computing chip.
The next few weeks may be bumpy for the D-Wave and the other quantum computing stocks, but one things will tell you what the future holds… their price action.
Investors are always looking for opportunities to buy into corrections on discovery phase companies. Jensen Huang may have just given investors exactly what they want, an opportunity to buy the dip.
Shares of D-Wave bounced from the $5.00 price on Wednesday. This price is an extremely important psychological level for stocks under $10. This comes after the stock was rejected at the $10 price last week, an equally important psychological level.
The fact that D-Wave is acting “naturally” by trading from key support and resistance levels speaks well for where the stock is heading.
Shares are likely to see additional volatility through the next week. A heavily traded rally from $5.00 will indicate that investors are more interested in speculating on the stock’s future.
Watch for support at $5.00 combined with a move back above QBTS’ 20-day moving average at $7.70 as a sign that the stock is set to move back towards $10 and above.
