Jensen Huang, CEO of NVIDIA, has sparked a significant downturn in quantum computing-related stocks with comments made during the CES 2025 event, where he stated that it could take 20 to 30 years before quantum computers become commercially viable. Huang’s remarks about the long commercialization timeline dampened investor enthusiasm, triggering a sharp decline in quantum computing investments. This, in turn, prompted ATON, a company previously buoyed by its association with quantum computing, to fast-track its plans to list new shares.
ATON, which had seen a surge in stock price as a thematic investment in the quantum computing sector, had earlier announced its intention to exercise conversion rights linked to convertible bonds (CB). However, following Huang’s comments, the company moved up the scheduled listing of new shares, originally set for January 27, to January 20. The accelerated listing comes after ATON exercised conversion rights on 5.5 billion won worth of convertible bonds on January 6, which will result in the issuance of approximately 1.42 million new shares priced at 3,870 won each. These new shares will represent about 6.09% of the company’s existing share capital.
Typically, when conversion rights are exercised, the issuance of new shares dilutes the value of existing shares, leading to downward pressure on the stock price. ATON’s stock, which had been trading at 6,530 won as of 2:26 p.m. on January 13, had fallen by 4.81% (330 won) from the previous trading session.
The news of ATON’s decision to expedite the share listing comes at a time when the quantum computing sector, once a hot investment theme, is experiencing a significant downturn. Investors had flocked to quantum computing stocks ahead of CES 2025, following the announcement that a dedicated quantum computing section would be introduced at the event. However, Huang’s comments about the long path to commercialization have cast doubt on the sector’s near-term prospects, causing prices to plummet.
This sudden drop in stock values, combined with ATON’s decision to accelerate its new share listing, has led to growing investor concerns. Some are speculating that creditors may be looking to offload their shares before prices fall further. If these fears prove accurate, ATON’s stock could face even more downward pressure in the coming days.
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