The "seohakgaemi" (individual investors in U.S. stocks) who have consistently bought U.S. quantum computing stocks saw their stock prices plummet. Jensen Huang, CEO of NVIDIA, noted that it would take a long time for quantum computers to become commercially viable. The impact of the price drop is expected to be significant as the proportion of domestic investors in U.S. quantum computing stocks is high.
The KOSEF U.S. Quantum Computing Exchange-Traded Fund (ETF) was trading at 10,000 won at 10:25 a.m. on the 8th in the KOSPI market. This represents a 3.8% (395 won) decline from the previous day. At the beginning of the trading session, the stock price felt pressure down to 9,695 won.
This ETF is a product that invests in 20 U.S. stocks related to quantum computing. Overnight, stock prices for quantum computing companies fell sharply on the New York Stock Exchange, dragging down the ETF price as well. The KOSEF U.S. Quantum Computing investment is predominantly in IonQ at 30.91%, along with holdings in Marvell Technology Group, NVIDIA, Honeywell International, and others.
On the 7th (local time) in the U.S. New York stock market, IonQ's stock price fell by 2.9% compared to the previous day. Quantum Computing (QUBT) dropped 3.32%, Rigetti Computing (RGTI) fell 5.74%, and D-Wave Quantum (QBTS) declined by 6.46%. The primary reason for the downturn is that the Institute for Supply Management (ISM) announced that the services purchasing managers index (PMI) for December of last year exceeded market expectations, triggering inflation concerns and causing bond yields to spike. The yield on 10-year Government Bonds is once again approaching 4.7%.
CEO Huang's remarks poured gasoline on the downward trend. He said during a global press conference held in Las Vegas, U.S., on the 7th (local time), "We are collaborating with quantum computer corporations, but it could take up to 30 years for a useful level of products to emerge," and added, "We may see initial-stage products only after 15 years."
Following CEO Huang's comments, the decline in quantum computing-related stocks worsened. In after-market transactions, IonQ fell an additional 10.73% compared to its closing price. Quantum Computing and Rigetti Computing also showed double-digit stock price declines.
Quantum computing is a stock that "seohakgaemi" have heavily invested in. As of the 6th, domestic investors hold shares of IonQ worth $3.23029 billion (approximately 4.7 trillion won), which exceeds 30% of IonQ's market capitalization. On the same day, Rigetti Computing shares also totaled $751.08 million (approximately 1.09 trillion won), which is about 16% of its market capitalization.
As the stock prices of quantum computing surged sharply until now, the current drop still puts the stock price above the average purchase price of "seohakgaemi." The average return of 36,140 IonQ investors who linked their account information with Naver Pay's "My Asset service" is at 78.8%.
However, if stock prices continue to decline, the proportion of investors at a loss is expected to rise rapidly. About 20% of investors in IonQ and Rigetti Computing have entered the loss phase, and the proportion of loss investors in D-Wave Quantum and Quantum Computing has reached the 40% range.