Quantum Computing Stocks Soar on Nvidia CEO’s Optimistic Outlook
In a remarkable market reaction, stocks involved in quantum computing surged in early trading on Wednesday following bullish remarks from Nvidia CEO Jensen Huang at the company’s GTC Paris developer conference. Quantum Computing (QUBT) experienced an impressive rise of over 32%, while Rigetti Computing (RGTI) and IonQ (IONQ) saw increases of more than 17% and 7%, respectively. In contrast, the S&P 500 remained largely unchanged.
During his address, Huang stated, “We are within reach” of harnessing quantum computers to tackle complex problems in the near future, declaring that the technology is “reaching an inflection point.” These comments mark a noticeable shift from previous assessments in January, where Huang suggested that effective quantum computers were still decades away, a sentiment that had negatively impacted quantum stocks.
The optimism surrounding quantum technology intensified following IBM’s announcement that it is developing the world’s first large-scale quantum computer designed to operate without errors, set for launch by 2029. Currently, quantum computing faces challenges like fragility and error production, hampering its practical use. Analysts viewed IBM’s progress as a significant step forward in overcoming these hurdles.
Big Tech firms such as Google, Amazon, and Microsoft are also making strides in quantum computing research. Recently, Amazon and Microsoft unveiled two new quantum chips, while Google introduced its quantum chip, Willow, which aims to facilitate the development of functional large-scale quantum computers.
As Nvidia seeks to expand its footprint in this burgeoning sector, the excitement generated by Huang’s comments reflects growing investor confidence in the promising future of quantum computing.
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