Core Insights - Quantum computing is gaining significant attention, transitioning from a theoretical concept to a potential reality, attracting retail investors to pure-play quantum stocks with multibillion-dollar market capitalizations [1] Company Summaries IonQ - IonQ's current market capitalization is approximately $22 billion, with a stock price of $62.33 and a gross margin of 1.14% [2] - The company reported trailing-12-month revenue of $53 million, which is significantly lower than its market value, raising concerns about inflated valuations [11] - IonQ utilizes "trapped ion" technology to create stable qubits, addressing the high error rates associated with quantum computing [6][8] D-Wave Quantum - D-Wave has a market capitalization of around $13 billion, with a stock price of $37.06 and a gross margin of 82.46% [11] - The company generated $22 million in trailing-12-month revenue, which is also seen as insufficient to justify its market valuation [9][11] - D-Wave focuses on scaling through an "annealing" approach, which allows for a higher qubit count but compromises stability [7][8] Industry Overview - Quantum computing has the potential to revolutionize various fields, including cryptography, drug discovery, and materials science, but practical large-scale quantum computing is still under development [5] - Current valuations of quantum stocks like D-Wave and IonQ are considered excessive given the nascent stage of the technology [9] - The industry faces challenges related to qubit stability and error rates, with different companies pursuing varying technological approaches [6][8]

Core Viewpoint - Quantum computing stocks, particularly Rigetti Computing and D-Wave Quantum, have seen significant price increases, but analysts believe they are overvalued after substantial gains [1][2]. Rigetti Computing - Rigetti specializes in superconducting quantum computing, utilizing electrical circuits at near absolute zero temperatures to create qubits [3]. - The company has a vertically integrated model, manufacturing processors, designing software, and providing cloud-based services [3]. - Rigetti's gate-based systems are considered to have less immediate commercial value compared to D-Wave's annealing systems, although they may address more complex problems as the technology matures [4]. - In Q2, Rigetti's sales fell 42% to $1.8 million, and the GAAP net loss tripled to $40 million, with operations consuming $30 million in cash year-to-date [5]. - Rigetti's stock trades at an extremely high valuation of 1,253 times sales, suggesting a potential downside of 54% from its current price of $39 [6]. - Analysts have set a target price of $18 per share for Rigetti, indicating a significant downside risk [7]. D-Wave Quantum - D-Wave focuses on superconducting quantum computing and has historically excelled in annealing systems, which are effective for optimization problems [8]. - The company has recently ventured into gate-based systems but lacks vertical integration as it does not manufacture its own processors [9]. - D-Wave's quantum annealing systems currently have more commercial utility than Rigetti's gate-based systems, although scaling gate-based systems remains challenging due to high error rates [9]. - D-Wave reported a 42% increase in revenue to $3.1 billion in Q2, but the non-GAAP net loss was $0.08 per diluted share [10]. - The stock trades at 384 times sales, which, while lower than Rigetti's valuation, is still considered expensive, leading to a plausible downside of 41% from its current price of $34 [11].

Core Insights - The article discusses the potential downturn for quantum computing stocks, highlighting that historical valuation metrics indicate a significant reversal may be imminent for companies like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. [1][4][18] Industry Overview - Quantum computing is emerging as a transformative technology, with applications across various sectors, including drug development and AI optimization [6][10]. - The technology is still in its infancy, and widespread commercialization is not yet evident, suggesting that it may take years for businesses to realize returns on investments in quantum computing [11]. Company Performance - Over the past year, IonQ's stock has increased by 270%, while Rigetti, D-Wave, and Quantum Computing Inc. have seen gains of 3,220%, 3,270%, and 1,340%, respectively [4]. - Current market capitalizations for these companies are significant, with IonQ at $21 billion and Rigetti at $14 billion [8][16]. Valuation Metrics - The price-to-sales (P/S) ratio is identified as a more relevant valuation metric for early-stage companies like those in quantum computing, as traditional price-to-earnings (P/E) ratios are less applicable due to negative earnings [14]. - Historical data shows that leading companies in emerging technologies have peaked at P/S ratios between 31 and 43, while current P/S ratios for quantum computing stocks are projected to be much higher, ranging from 69 to 352 by 2027 [15][17][19]. - This suggests that the current valuations of quantum computing stocks are unsustainable, indicating a potential for significant price corrections in the future [18].

Core Insights - Quantum computing is in its early stages, presenting high risks but significant long-term potential, with D-Wave Quantum Inc. (QBTS) and Quantum Computing Inc. (QUBT) showing promising narratives ahead of their Q3 2025 earnings release [1] D-Wave Quantum Inc. (QBTS) - D-Wave reported a 42% year-over-year revenue increase in Q2 2025, achieving a record cash balance of over $819 million, driven by the rollout of its Advantage2 system and partnerships with companies like GE Vernova and Nikon Corporation [2][9] - The company enters Q3 2025 with strong financial health, allowing for accelerated adoption of Advantage2 and progress towards its goal of scaling to 100,000-qubit hardware [6][9] - D-Wave's strategic focus includes gate-model development, quantum-AI initiatives, and advanced cryogenic packaging partnerships, with Q3 serving as a potential indicator of its ability to convert liquidity into adoption [7][9] Quantum Computing Inc. (QUBT) - QUBT made significant advancements, including a commercial order for its quantum photonic vibrometer and the inauguration of its thin-film lithium-niobate chip foundry in Arizona, ending Q2 with approximately $349 million in cash [3][10] - The company has a solid financial foundation with over $426 million in assets and only $30 million in liabilities, enabling aggressive scaling without immediate funding pressures [10] - QUBT's future milestones will focus on proving repeatability and commercial demand, with partnerships with institutions like NASA and Delft University, aiming to transition from technology validation to scalable monetization by late 2025 [12][11] Stock Performance and Analyst Insights - QUBT's average price target suggests a potential increase of 69.7% from its last closing price of $15.52, while QBTS's average price target indicates a decline of 24.4% from $34.26 [13][15] - As both companies approach their Q3 2025 earnings reports, D-Wave appears better positioned for near-term execution due to its larger cash position and accelerating revenue growth, while QUBT is still in the early stages of converting pilot projects into recurring revenues [16][17]

Group 1 - Quantum concept stocks experienced a rise on Wednesday, with IONQ Inc (IONQ.US) and Rigetti Computing (RGTI.US) both increasing by over 6.4% [1] - D-Wave Quantum (QBTS.US) also saw a significant increase of over 6.4%, while Quantum Computing (QUBT.US) rose by more than 3% [1]

We recently published 10 Stocks Crashing Hard Despite Highly Optimistic Market. D-Wave Quantum Inc. (NYSE:QBTS) is one of the worst-performing stocks on Tuesday. D-Wave Quantum dropped its share prices by 8.68 percent on Tuesday to close at $32 apiece as investors resorted to profit-taking following three straight days of gains. Last week, shares of quantum firms, including D-Wave Quantum Inc. (NYSE:QBTS), surged following a report that the Trump administration was keen on investing in the said industry. ...

Core Viewpoint - QuantumScape is positioned as a superior investment opportunity compared to D-Wave Quantum due to its advancements in solid-state battery technology and clearer commercialization pathway [2][14][15]. Group 1: Technology and Innovation - QuantumScape demonstrated the world's first live electric vehicle powered by solid-state batteries, showcasing an energy density of 844Wh/L and rapid charging capabilities [4][5]. - The company has shipped B1 samples using a new production technique that is 25 times more efficient than previous methods, entering Volkswagen's vehicle program for 2026 testing [6][8]. Group 2: Financial Performance and Revenue - QuantumScape recorded its first customer billings of $12.8 million in Q3 2025, marking a shift from R&D to commercial operations [8]. - In contrast, D-Wave anticipates only $3.12 million in quarterly revenue, which is insufficient to support its market cap exceeding $10 billion [8]. Group 3: Market Potential - The global electric vehicle battery market is significantly larger than the quantum computing market, with major manufacturers targeting solid-state battery commercialization by 2027-2028 [9][15]. - QuantumScape's partnership with Volkswagen, which includes a commitment of up to $131 million in funding, highlights its strong market position and potential for growth [7][15]. Group 4: Competitive Landscape - QuantumScape faces competition from established players like Toyota and SK On, which are advancing their own solid-state battery technologies [11]. - D-Wave risks being overshadowed by competitors in the quantum computing space, such as IBM and Google, as its revenue remains minimal [12]. Group 5: Investment Outlook - QuantumScape is seen as having a more immediate pathway to commercial validation and significant returns, aligning with automotive industry needs [14][16]. - D-Wave, while a pioneer in quantum computing, lacks the immediate market appeal and revenue prospects that QuantumScape currently possesses [15][16].

Core Insights - Government stakes in quantum computing companies could pose risks for investors, despite the excitement surrounding the technology [5][10][11] - Quantum computing stocks have seen significant price increases, indicating strong investor interest [2][3] - The potential applications of quantum computing are vast, including drug development and cybersecurity [3] Group 1: Government Involvement - The Trump administration is reportedly considering equity stakes in quantum computing firms like IonQ, Rigetti Computing, and D-Wave Quantum, which could lead to dilution of existing shares [5][9] - Government stakes may prioritize political interests over the long-term health of these companies, potentially impacting their operations and strategies [10][11] - Previous instances of government equity stakes in other sectors have raised concerns about the implications for public companies [8] Group 2: Market Performance - Quantum computing stocks have experienced remarkable returns over the past year, with IonQ up 284%, Rigetti Computing up 3,140%, D-Wave Quantum up 2,760%, and Quantum Computing Inc. up 1,310% [2] - Despite the impressive growth, these companies are expected to continue losing money and burning cash through 2028, indicating a challenging financial outlook [7] Group 3: Valuation Concerns - The price-to-sales (P/S) ratios for leading quantum computing stocks are extraordinarily high, with IonQ at 263, Rigetti Computing at 1,243, D-Wave Quantum at 375, and Quantum Computing Inc. at 7,322 [20] - Historical trends suggest that high valuations in emerging technologies often lead to significant market corrections, raising concerns for current investors [19][20] - The technology remains in its early stages, and widespread commercialization may take years, which could affect stock performance [16]

Core Insights - D-Wave Quantum (QBTS) is set to report its Q3 2025 results on November 6, 2025, with optimistic investor sentiment driven by recent commercial successes and the launch of its Advantage2 quantum computer, which has enhanced system capabilities and customer interest [1][8] - The company's stock experienced a significant increase of 66.7% during the July-September quarter [1] Financial Performance - D-Wave has reported one earnings beat in the last four quarters, with an average negative surprise of 269.45% [2] - The Zacks Consensus Estimate for Q3 EPS remains unchanged at a loss of $0.07 per share, indicating a 36.4% improvement from the previous year's loss [4] - Q3 revenue is estimated at $3.12 million, reflecting a year-over-year growth of 66.8% [4] - For 2025, revenues are expected to increase by 181.5% year-over-year, with the bottom line improving to a loss of $0.24 per share from a loss of $0.75 a year ago [5] Market Developments - D-Wave has made significant strides in commercial progress, securing new customer wins in quantum sensing, cybersecurity, and AI, including a notable purchase order from a top 5 U.S. bank for quantum security [9][10] - The company has expanded partnerships with NASA and other global institutions, enhancing its market presence [8][11] Technology and Partnerships - Recent product launches include the EmuCore reservoir computing device, supporting machine learning research, and advancements in quantum-powered LIDAR data processing through NASA collaborations [11] - The operational photonic chip foundry in Arizona is ramping up production for various sectors, contributing positively to Q3 revenues [11] Operational and Financial Trends - In the last reported quarter, D-Wave's revenues were $61,000 with a gross margin of 43%, while operating expenses reached $10.2 million, leading to a net loss of $36.5 million [12] - Total assets increased to $426.1 million, with cash holdings rising to $348.8 million after a $188 million private placement, strengthening the company's balance sheet [13] Valuation - D-Wave's stock is currently trading at a forward price-to-sales (P/S) ratio of 331.65, significantly higher than the industry average of 5.63, indicating potential risks if Q3 results do not meet expectations [20][22]

D-Wave Quantum Inc. (NYSE:QBTS) is one of the stocks on Jim Cramer’s radar recently. With Apple, Palantir, Arthur J. Gallagher, Agnico Eagle Mines, and D-Wave Quantum as their top five holdings, a caller sought Cramer’s opinion on the diversification of their portfolio. He replied: “… As I said, I don’t mind having a spec among my five. Let D-Wave do it. People want to go quantum. We’ve studied all these. That’s the best of the quantums. That doesn’t mean I think we should embrace quantum because the two ...