Shares of quantum computing and artificial intelligence (AI) companies saw significant gains on Monday as investors eagerly anticipated new announcements from Nvidia’s annual GTC AI conference. The five-day event, already underway, is expected to reignite interest in these sectors, which have faced recent challenges.
The conference will dedicate an entire day to quantum computing, featuring executives from leading firms such as D-Wave Quantum and Rigetti Computing. This focus has already spurred a rally in quantum computing stocks, with D-Wave Quantum surging 9.4%, Quantum Corp jumping 23.1%, and Quantum Computing climbing 15.5%. AI-related stocks also experienced gains, with SES AI soaring 30% and Dell Technologies rising 3%.
Investors are particularly focused on Nvidia CEO Jensen Huang’s keynote address, scheduled for Tuesday, which is expected to highlight the latest advancements in AI and semiconductor technologies. The AI and chip sectors have recently lost momentum due to concerns over competing AI products from China and the potential impact of U.S. tariffs.
David Morrison, a senior analyst at Trade Nation, noted that a positive presentation from Huang could trigger significant upward movements in AI and quantum computing stocks. “Many of these stocks are oversold, so it just takes a catalyst to bring investors back,” he said.
The renewed emphasis on quantum computing marks a shift from Huang’s earlier comments in January, where he suggested the technology was decades away from practical applications, causing a selloff in related stocks. Ken Mahoney, CEO of Mahoney Asset Management, described the GTC conference as the “Woodstock of AI,” adding that even slightly encouraging remarks from Huang could provide a boost to the sector.
Nvidia is expected to unveil details of a new chip system, share updates on its Blackwell Ultra chip, and outline plans for expansion into other computing markets, including robotics. However, trading remained volatile, with Rigetti Computing reversing its premarket gains and Nvidia itself dipping 1.8% after an initial rise.
Despite a strong 171% rally in 2023, Nvidia’s stock has declined by 11% this year. Mahoney emphasized that to reignite excitement in the AI space, Nvidia may need to deliver surprises beyond market expectations.
As the GTC conference continues, all eyes are on Nvidia to see if it can restore momentum to the AI and quantum computing sectors, which remain pivotal to the future of technology and innovation.
