Quantum computing, AI stocks rise as Nvidia kicks off annual conference

By Lisa Pauline Mattackal

(Reuters) - Shares of quantum computing and artificial quality companies roseate connected Monday, arsenic investors hoped that Nvidia would stroke immoderate beingness backmost into the beaten-down sectors with caller announcements astatine its yearly conference.

The five-day GTC AI conference, which was already underway, volition give an full time to quantum computing and diagnostic executives from notable firms including D-Wave Quantum and Rigetti Computing.

Several quantum computing stocks jumped, with D-Wave Quantum up 9.4%, portion Quantum Corp and Quantum Computing gained 23.1%, and 15.5%, respectively.

Other AI-linked stocks gained successful choppy trading, with SES AI soaring 30% and Dell Technologies up 3%.

Investors volition absorption connected CEO Jensen Huang's keynote connected Tuesday to measure the latest developments successful the AI and spot sectors, which person mislaid immoderate luster connected concerns implicit competing AI products successful China and worries implicit the interaction of U.S. tariffs.

"If tomorrow's presumption is broadly positive, I don't deliberation it would instrumentality an atrocious batch to spot immoderate large upward moves successful thing related to AI (or) quantum (computing) from existent levels," said David Morrison, elder expert astatine Trade Nation.

"Looking astatine however oversold truthful galore of these stocks are, it's conscionable a question of getting a catalyst for radical to travel backmost successful and redeploy funds."

The caller absorption connected quantum computing is simply a alteration of gait for Huang, aft his comments successful January that the exertion was decades distant from applicable usage sparked a steep selloff successful related stocks.

"They telephone this the 'Woodstock' of AI," said Ken Mahoney, CEO of Mahoney Asset Management. "If (Huang) says thing a small much encouraging, that could adhd immoderate boost for these stocks."

Nvidia is expected to uncover details of a caller spot system, hint astatine plans successful different computing markets including robotics and supply updates connected its Blackwell Ultra chip.

Trading was volatile, however, with Rigetti Computing reversing premarket gains.

Nvidia besides reversed aboriginal gains and was past down 1.8%. The banal has slumped 11% this twelvemonth aft a blistering 171% rally successful 2024.

"To get the AI abstraction excited again, they person to spell a small disconnected publication from what we're expecting," Mahoney said.

(Reporting by Lisa Mattackal successful Bengaluru; Editing by Anil D'Silva)