Quantum Computing and AI Stocks Surge as Nvidia Begins Annual Conference

Shares of companies involved in quantum computing and artificial intelligence have seen a rise as investors anticipate that Nvidia will rejuvenate these struggling sectors with new announcements during its annual conference.

The five-day GTC AI conference is currently ongoing and has dedicated an entire day to discussions on quantum computing, featuring speakers from prominent firms like D-Wave Quantum and Rigetti Computing.

Many stocks in quantum computing experienced significant gains, with D-Wave Quantum rising by 9.4 percent, and Quantum Corp and Quantum Computing increasing by 23.1 percent and 15.5 percent, respectively.

Stocks related to artificial intelligence also saw positive movement amid fluctuating trading conditions, with SES AI surging 30 percent and Dell Technologies up three percent.

Investors are particularly attentive to CEO Jensen Huang's keynote speech, hoping to get insights into the latest advancements in the AI and chip industries, which have faced challenges due to concerns over AI products competing in China and the effects of U.S. tariffs.

David Morrison, a senior analyst at Trade Nation, indicated, "If tomorrow's presentation is broadly positive, it wouldn't take much for significant upward movements in AI or quantum computing stocks from their current levels." He noted that many of these stocks are oversold and merely need a catalyst to encourage investor re-engagement.

Interestingly, Huang's previous comments in January labeling quantum technology as decades away from practical application led to a steep decline in related stocks. However, the current focus on quantum computing marks a shift in narrative.

Ken Mahoney, CEO of Mahoney Asset Management, stated, "They refer to this event as the 'Woodstock' of AI. If Huang delivers more encouraging remarks, it could provide an additional boost for these stocks."

Nvidia is expected to announce details about a new chip system, share insights about its plans in other computing fields, including robotics, and provide updates on the Blackwell Ultra chip.

Nonetheless, trading has been volatile, with Rigetti Computing reversing its premarket gains and Nvidia also seeing early gains evaporate, with the stock last observed down 1.8 percent. After an impressive 171 percent surge in 2024, Nvidia shares have dipped 11 percent this year.

Mahoney concluded, "To rekindle excitement in the AI sector, Nvidia needs to unveil something that diverges from current expectations."

Quantum, Computing, AI