Nvidia CEO Sparks Quantum Stock Crash

TECH
Nvidia CEO Sparks Quantum Stock Crash

Quantum-computing stocks plunged after Nvidia CEO Jensen Huang predicted practical applications for the technology are at least 15 to 30 years away. Huang told analysts that while quantum computing has immense potential, its practical use cases remain distant, downplaying its threat to Nvidia’s dominance.

Quantum companies like Rigetti Computing, Quantum Computing Inc., IonQ, and D-Wave Quantum saw shares tumble 36% to 45% Wednesday after meteoric rises in 2024. Rigetti, for instance, had surged 1,654% last year before the drop.

Huang’s comments contrast with recent advances, like Google’s Willow chip solving a problem in seconds that classical supercomputers would need septillion years to complete. Despite breakthroughs, experts agree mainstream quantum applications are far off.

D-Wave CEO Alan Baratz rebuked Huang, emphasizing that companies like Mastercard already use its technology today, rejecting claims that practical quantum computing is decades away. The debate highlights the technology’s speculative yet promising nature.

FINANCE
Global GDP Growth Slows to 2.8%

The global economy, resilient despite inflation and conflicts, is forecast to grow 2.8% in 2025, according to the United Nations’ “World Economic Situation and Prospects 2025” report. The growth is driven by strong performances in China, the U.S., India, and Indonesia, while the EU, Japan, and the UK are expected to recover modestly.

China’s growth is projected to slow slightly from 4.9% in 2024 to 4.8% in 2025 due to weak consumption and property-sector challenges. Meanwhile, India’s robust private consumption and investments will support a 6.6% growth rate.

Global growth remains below pre-pandemic levels of 3%, with uneven recovery across regions. While the U.S. benefits from consumer spending, Europe and Japan are emerging from weaker-than-expected performances.

UN economists caution that the recovery is primarily driven by a few large economies, urging policies to address structural challenges and ensure sustained, inclusive growth globally.

TECH
Musk Proposes Removing X Post Dates

Elon Musk is exploring major changes to X, including removing dates from posts on the main timeline and introducing an $8 sign-up fee for new users. The proposal to eliminate date stamps, intended to improve the platform’s aesthetics, has raised concerns among X employees about exacerbating misinformation. Dates would still be visible when users click on individual posts, but critics argue this could confuse casual users and strip critical context.

Additionally, X plans to charge new users $8 to join, which includes one free month of X Premium, offering verification badges. Musk frames the fee as a move to combat bots and boost revenue as X’s ad business has suffered since his acquisition. While social media platforms typically rely on free access for user growth, Musk believes this step is crucial for X’s profitability. These changes reflect Musk’s push to reshape X amid declining ad revenues and user engagement.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research.