Nvidia's Annual Conference Sparks Growth in Quantum Computing and AI Stocks

Shares of companies in quantum computing and artificial intelligence (AI) experienced an uptick as investors looked forward to Nvidia's announcements, hoping to rejuvenate these previously struggling sectors during its annual conference.

The GTC AI conference, spanning five days and currently in progress, includes a full day dedicated to quantum computing. It will feature key figures from influential companies such as D-Wave Quantum and Rigetti Computing.

Several stocks from the quantum computing space saw significant gains; for example, D-Wave Quantum rose by 9.4 percent, while Quantum Corp and Quantum Computing increased by 23.1 percent and 15.5 percent, respectively. Additionally, related AI stocks also showed growth amid fluctuating markets, with SES AI soaring 30 percent and Dell Technologies climbing three percent.

Investor attention was drawn to CEO Jensen Huang's keynote speech, where he was expected to provide insights on the latest advancements in AI and chips, particularly against the backdrop of concerns regarding competitive AI products originating from China and the implications of US tariffs.

David Morrison, a senior analyst at Trade Nation, expressed optimism, stating, "If tomorrow's presentation is broadly positive, it wouldn't take much to see significant upward movement in stocks related to AI or quantum computing given the current low valuations." He noted, "Many of these stocks are oversold, and it's just about finding a catalyst to encourage investors to re-enter the market."

Interestingly, Huang’s shift in tone regarding quantum computing marks a notable change from his earlier comments in January, which had suggested that the technology was a long way from practical application, leading to a downturn in related stocks at the time.

Ken Mahoney, CEO of Mahoney Asset Management, referred to the conference as the "Woodstock of AI," implying it is a pivotal event for the industry. He remarked, "If Huang presents something a bit more encouraging this time around, it could provide a substantial uplift for these stocks."

Nvidia is anticipated to introduce a new chip system, discuss potential ventures in other computing areas, including robotics, and update attendees on its Blackwell Ultra chip.

Despite the excitement, trading proved to be volatile; for instance, Rigetti Computing experienced a reversal of its premarket gains, while Nvidia shares moved downward by 1.8%. Nvidia’s stock has suffered an 11 percent decline this year, following a remarkable rally of 171 percent in 2024.

According to Mahoney, for the AI sector to regain its excitement, Nvidia needs to deviate slightly from expected announcements, indicating that the market is longing for something novel and impactful.

Nvidia, Conference, Stocks