D-Wave Quantum Inc. (QBTS) stock plummeted 5.81% on Thursday in the 24-hour period, extending its intraday losses to over 31% at one point during the trading session.

The steep decline comes after a period of euphoric investor interest in quantum computing stocks, particularly D-Wave and Rigetti Computing (RGTI), following Alphabet Inc.'s (GOOGL) announcement of its new Willow quantum chip on December 9th. While D-Wave's stock surged nearly 600% year-to-date, reaching an intraday high of $8.96 on December 18th, the recent sell-off suggests investor enthusiasm may have been overheated.

Additionally, reports emerged that D-Wave's largest investor, the Public Sector Pension Investment Board (PSP), sold nearly $80 million worth of D-Wave shares from December 10th to 12th at an average price of $4.29 per share. This significant insider selling further contributed to the stock's decline, as investors reassessed the company's prospects and valuation amid challenges in developing practical, scalable quantum computing applications.