Key insights
- Quantum computing stocks are rallying due to Nvidia's new AI models designed for quantum computing tasks. Nvidia's models aim to improve error correction, boosting sentiment in the sector. IonQ and Rigetti Computing saw significant gains. Citi analysts noted Infleqtion is already benefiting from the new models. Despite the recent surge, most quantum computing stocks remain down year-to-date.
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Quantum computing stocks are rallying Wednesday, with a bit of help from AI chip leader Nvidia.
Shares of Nvidia partners IonQ (IONQ) and Rigetti Computing (RGTI) were up 17% and 11%, respectively, in recent trading, after Nvidia (NVDA) on Tuesday announced a new family of AI models called Ising designed for quantum computing tasks. Other quantum computing stocks, including Quantum Computing (QUBT) D-Wave Quantum (QBTS), also gained. Nvidia shares were little changed.
Nvidia said its new models can help correct errors created during the quantum computing process faster and more accurately than existing methods.
Nvidia expanding its efforts in the quantum computing space could improve sentiment surrounding quantum computing stocks that took a hit in recent months, amid a broader pullback in many AI-related stocks.
Citi analysts said following the event that some of Nvidia's partners, such as Infleqtion (INFQ), are already using and seeing benefits from the new AI models. Infleqtion's stock, which the analysts initiated coverage of with a "buy" rating, jumped 6% before paring back some of its gains.
Despite their recent advance, shares of D-Wave, Rigetti, Quantum Computing, IonQ, and Infleqtion are still in negative territory for the year.
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