Nvidia CEO Jensen Huang declares quantum computing is reaching an "inflection point," sending tech stocks soaring

A wave of investor optimism swept the tech sector on Wednesday after Nvidia CEO Jensen Huang declared that quantum computing is reaching an “inflection point.”

Nvidia CEO Jensen Huang's optimistic outlook on quantum computing has brought a wave of optimism to the tech sector, with quantum stocks surging on Wednesday.

During his speech at Nvidia's GTC conference in Paris, Huang stated that quantum systems are nearing the stage where they can effectively solve real-world problems. This comment, which came just a day after IBM announced its goal to build the world's first large-scale, error-free quantum computer by 2029, has sparked significant interest in the field.

Quantum Confidence Rebounds

As a result of this announcement, Quantum Computing Inc. stock price shot up by over 32 percent to reach $18.99, while Rigetti Computing's stock price surged by more than 17 percent. Additionally, IonQ's stock price increased by 7 percent.

Earlier this year, Huang had predicted that truly useful quantum machines might still be 15 years away, which caused the same stocks to plummet. However, at GTC, he acknowledged that his previous comments had underestimated the pace of progress.

"We are now within reach of applying these systems to challenges across multiple sectors, such as cryptography, financial modeling, and drug discovery," Huang said.

Hybrid Computing Takes Center Stage with Nvidia's Cuda Q

During his keynote, Huang also highlighted Nvidia's Cuda Q, a hybrid platform that combines classical and quantum computing. He explained that this platform is becoming increasingly important as the advancement of quantum technology is still uneven, with full-scale quantum systems facing difficulties such as error correction and qubit stability.

"We are at an inflection point in quantum computing," Huang stated. "We can now solve meaningful problems with today's quantum systems, and we have the potential to solve even more difficult problems in the near future."

His comments follow IBM's announcement of its ambitious plan to develop the world's first large-scale, error-free quantum computer by 2029. If successful, IBM's initiative could mark a major turning point in the field of quantum technology.

Other tech giants, including Google, Amazon, and Microsoft, have also been making significant strides in their respective quantum efforts.

Late last year, Google unveiled its "Willow" chip, which was widely hailed as a breakthrough in error correction, a critical hurdle in realizing the promise of quantum computing.

Amazon and Microsoft have also rolled out their own quantum hardware, aiming to establish leadership in what many expect to be the next computing revolution.

Quantum computing, which operates on qubits instead of binary bits, promises to unlock vast processing capabilities, especially for problems that are too complex for classical computers to handle.

Despite the promise, the industry has faced challenges in implementing quantum technology for real-world applications due to the fragility and high error rates of quantum systems.

This had led to investors growing increasingly cautious, especially after earlier predictions of rapid progress failed to materialize and some companies' updates fell short of expectations.

However, Huang's updated stance and his acknowledgment of a vibrant quantum ecosystem in Europe, including companies like French-based Pasqal, have rekindled confidence among investors.

Nvidia itself is making a concerted push into the quantum space. Earlier this year, Nvidia held its first Quantum Day and unveiled plans for a new research hub in Boston focused on quantum technologies.

These moves suggest that Nvidia sees a viable commercial future for quantum, not just a distant possibility.

Nvidia's stock price closed at $504.07, while IBM's stock price closed at $153.17. Both stocks saw further gains in extended trading.