Quantum Computing (QUBT -7.70%) stock is soaring in Wednesday's trading. The company's share price was up 30.9% as of 1:30 p.m. ET amid a pair of bullish catalysts. The stock had been up as much as 38.2% earlier in the day.
Nvidia CEO Jensen Huang made comments this morning stating that quantum-computing technologies are approaching "an inflection point." In addition to a promising endorsement from one of the most influential CEOs in the tech space, Quantum Computing stock is likely also getting a boost from some promising inflation data.
Image source: Getty Images.
Nvidia CEO Jensen Huang is becoming more bullish on quantum technologies
As the leader of the hardware company at the forefront of the artificial intelligence (AI) revolution, Jensen Huang's word carries a lot of weight in the tech sector. When it comes to emerging technologies, including quantum computing and self-driving vehicles, an endorsement from Huang or Nvidia can often be enough to power strong valuation rallies for relevant companies.
Speaking at Nvidia's Paris GTC conference today, Huang said that quantum computing is "approaching an inflection point." The comments helped power huge gains for quantum stocks, and Quantum Computing has been the day's biggest winner so far.
What does the latest inflation data mean for Quantum Computing stock?
This morning, the Bureau of Labor Statistics published the latest core Consumer Price Index (CPI) data -- and the results were better than anticipated. Core CPI, which tracks the cost of a basket of goods and excludes food and energy items, increased 2.8% year over year in May and 0.1% on a sequential monthly basis. For comparison, economists had forecast that core CPI would increase 2.9% year over year and 0.2% on a monthly basis.
Slower-than-anticipated inflation makes it more likely that the Federal Reserve will serve up an interest rate cut this year. In turn, this could create a stronger bullish environment for the stock market -- and growth stocks in particular. If the Fed does return to cutting rates this year, it could create a much more favorable backdrop for Quantum Computing and other high-risk, high-reward stocks in its corner of the tech industry.
