Today, investors in Quantum Computing (NASDAQ:QUBT) are seeing a lot of green. Shares of QUBT stock are currently up more than 7%, as the market dips following a green start to the day.
It appears certain groups of stocks are outperforming today. Among the group investors have their eye on right now are quantum computing plays.
One of the reasons for this is some key technological breakthroughs and announcements at today’s virtual GTC conference held by Nvidia (NASDAQ:NVDA). With an eye on where the future of advanced computing is headed, investors appear increasingly enticed by smaller-cap plays in this sector as well.
Indeed, the growth potential of the quantum computing space is a big deal. However, there are a number of big names currently looking to dominate this space. Among the competitors Quantum Computing is up against is Amazon (NASDAQ:AMZN), for example.
However, today investors have a company-specific catalyst they’re jumping on with this stock. Let’s dive into what’s behind today’s rise in QUBT stock.
QUBT Stock Surges on Quantum Computing Challenge Results
The problem with the quantum computing space right now is there’s a lot that’s still theoretical about this space. However, when the opportunity arises for quantum computing companies to put their technology to work in real world situations, investors start paying attention.
The BMW Group Quantum Computing Challenge is one of the premier events in the quantum computing space. Participants highlight their technologies in various use-case challenges. This year, Quantum Computing proved to be one of the stars of the show.
Quantum Computing announced today that the company has been selected as one of three finalists for this challenge in the vehicle sensor placement use case. Essentially, this challenge requires participants to locate optimal configurations of a vehicle sensor to detect obstacles in various driving conditions. Sounds like a viable real-world use case to me.
These results are bullish for investors who may have a hard time believing the hype around QUBT stock. A company with a market capitalization of less than $200 million, Quantum Computing provides growth investors with a tremendous amount of upside. However, how quickly the market chooses to adopt these technologies is uncertain.
For now, investors have a catalyst to rely on for the near term, at least. Accordingly, this is a company that appears to have generated a significant amount of interest among growth investors today.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
