Quantum Computing Stocks Tumble Following Palantir’s Q3 Earnings
Quantum computing stocks faced significant declines as Palantir's third-quarter earnings report triggered a broader sell-off in AI and quantum-related equities. Despite posting a 63% revenue increase and raising its Q4 outlook, Palantir's shares fell nearly 8% amid valuation concerns. The downturn extended to quantum computing firms like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing, with losses mirroring weakness across high-growth AI names.
Short seller Michael Burry's bearish bets against Palantir and Nvidia further pressured sentiment. The reaction underscores market sensitivity to stretched valuations, even for companies delivering consistent earnings beats. AI voice recognition firm SoundHound AI dropped over 12%, while cloud AI players CoreWeave and Nebius slid more than 8% in the sector-wide retreat.
