Group 1 - Quantum computing is viewed as a speculative science by industry experts, yet major investors like BlackRock, Temasek, and Nvidia are investing billions, indicating a belief in its potential as a trillion-dollar market [2] - The disparity between skepticism in public markets and enthusiasm in private markets presents investment opportunities, with governments prioritizing quantum supremacy due to concerns over encryption vulnerabilities as "Q-Day" approaches [3][8] - The three pure-play quantum stocks—IonQ, D-Wave Quantum, and Rigetti Computing—have shown significant returns over the past year, reflecting growing interest from Wall Street [4][8] Group 2 - IonQ's acquisition of Oxford Ionics for $1.075 billion, approved by the U.K. Investment Security Unit, enhances its trapped-ion technology [5] - IonQ is also expanding its quantum networking capabilities through acquisitions and has raised $1 billion in equity, resulting in approximately $1.6 billion in cash and investments [6] - D-Wave Quantum focuses on quantum annealing rather than universal quantum computers, with its Advantage2 system improving qubit connectivity and practical applications for enterprises [7]

Core Insights - Quantum computing stocks experienced a significant increase following reports that the Trump administration is in discussions to invest in several quantum computing companies [1][2] Group 1: Government Interest in Quantum Computing - The Trump administration is considering taking stakes in companies such as IonQ, Rigetti Computing, and D-Wave Quantum, with discussions around minimum investments of $10 million each [2][3] - This investment strategy reflects a shift in the federal government's approach to collaborating with American businesses, as seen in previous investments in Intel and MP Materials [3][5] Group 2: Strategic Importance of Quantum Computing - The Trump administration views quantum computing as a strategic priority, similar to its investments in the semiconductor industry [5][7] - The administration's focus on quantum computing aligns with its broader strategy to reinforce U.S. dominance in critical technologies, including artificial intelligence and semiconductors [6][7]

Core Insights - The Trump administration is engaging with the quantum computing industry, specifically in talks with D-Wave Quantum, IonQ, and Rigetti Computing for potential equity stakes in exchange for funding [1] Industry Overview - Quantum computing is still in an experimental phase and is not expected to provide significant value to most organizations currently [5] - Practical applications of quantum computing are estimated to be five to ten years away, with some industry leaders suggesting it could take up to two decades for commercially useful quantum computers to emerge [5][6] - The quantum computing market is projected to be worth $4 billion by 2030, significantly smaller than the $2.4 trillion forecasted for the cloud computing market [6] Company Valuations - D-Wave, IonQ, and Rigetti are currently unprofitable, with D-Wave and IonQ burning twice as much cash as they earned in revenue over the past year, while Rigetti burned six times as much [7] - The price-to-sales (PS) ratios for these companies are extremely high, with D-Wave trading at 500 times sales, IonQ at 340 times sales, and Rigetti at 1,590 times sales [11] - Even with projected sales growth, these companies would still have inflated PS ratios, indicating a potential bubble in the quantum computing sector [9][11] Future Outlook - The quantum computing industry is seen as having transformative potential, but current inflated valuations and the long timeline for mainstream applications suggest that better buying opportunities may arise in the future [9] - Historical trends in technology stocks indicate that significant price corrections are likely, and investors may benefit from waiting for such opportunities before investing in D-Wave, IonQ, or Rigetti [10]

Core Insights - D-Wave Quantum's stock experienced a significant sell-off, dropping 14.8% in the last week of trading following the announcement of financial restructuring moves [1][4] - Despite the recent decline, D-Wave's stock is still up approximately 289% year-to-date [2] Company Actions - On October 20, D-Wave announced the redemption of outstanding stock warrants, which led to a substantial decrease in share price [2][4] - The company redeemed around five million outstanding stock warrants and expects these warrants to cease trading on the New York Stock Exchange by November 17 [5] Market Impact - The announcement of warrant redemption triggered significant selling pressure, although there was some recovery later in the week [4] - The potential exercise of these warrants could lead to stock dilution of less than 2.1% for existing shareholders [5] Valuation and Future Outlook - D-Wave is currently valued at approximately 455 times this year's expected sales, reflecting high growth-dependent valuations in the quantum computing sector [6][7] - The company is set to report its third-quarter earnings on November 6, which will provide further insights into its performance and new technology initiatives [7]

Core Insights - Ten large-cap stocks experienced significant declines last week, raising concerns for investors regarding their portfolio holdings [2] Company Performance Summary - Oklo Inc. (NYSE:OKLO) lost 15.15% this week [2] - Rigetti Computing, Inc. (NASDAQ:RGTI) fell 17.94% amid reports of the Trump administration negotiating with U.S. quantum computing firms for federal funding [2] - STMicroelectronics (NYSE:STM) declined 17.17% after providing fourth-quarter revenue guidance below analyst expectations [2] - D-Wave Quantum Inc. (NYSE:QBTS) dropped 17.57% this week [2] - NuScale Power Corporation (NYSE:SMR) fell 18.53% following a downgrade from Citigroup, which lowered its price target from $46 to $37.50 [2] - Deckers Outdoor Corporation (NYSE:DECK) decreased by 13.33% after issuing fiscal year 2026 sales guidance below expectations, leading to multiple analyst price forecast reductions [2] - Fermi Inc. (NASDAQ:FRMI) saw a decline of 14.71% this week [2] - Harmony Gold Mining Company (NYSE:HMY) fell 13.16% as precious metals stocks declined due to a pullback in gold and silver prices [2] - MP Materials Corp. (NYSE:MP) dropped 11.75% as rare earth mineral-related stocks traded lower following a U.S.-Australia deal to boost supplies of critical metals [2] - AST SpaceMobile, Inc. (NASDAQ:ASTS) fell 14.75% after announcing a proposed private offering [2]

Industry Overview - Quantum computing stocks have seen significant growth recently, indicating an active arms race in the sector with multiple companies announcing breakthroughs [1][2] - The market for quantum computing is projected to grow substantially, with estimates suggesting an annual value of $1 billion to $2 billion before 2030, and potentially reaching $15 billion to $30 billion between 2030 and 2040 [13] Company Analysis - **IonQ**: Currently leads the quantum computing space with a two-qubit gate fidelity of 99.97%, achieved through trapped ion technology, which is more accurate but slower compared to other methods [6][8] - **Rigetti Computing**: Utilizes superconducting qubits, which require cooling to near absolute zero, offering the fastest processing speeds. The company has already sold two quantum computing systems for a total of $5.7 million [9][14] - **D-Wave Quantum**: Focuses on quantum annealing for specific optimization problems, which may limit its application but could cater to industries with high demand for quantum solutions [10][12] Market Potential - If all three companies capture a 20% market share by 2035, each could generate around $6 billion in sales, leading to a potential market cap of about $54 billion for each company, suggesting a tripling to quadrupling of stock prices over the next decade [13][15]

Key Points Investors are pouring unprecedented sums into quantum computing stocks. However, many popular quantum computing stocks are speculative companies as opposed to the usual, megacap beneficiaries from the artificial intelligence (AI) boom. D-Wave Quantum is an interesting quantum AI stock, and its popularity rhymes with that of the rise of Nvidia over the last few years. 10 stocks we like better than D-Wave Quantum › As investors hunt for the next Nvidia, attention is shifting toward quant ...

Core Insights - Quantum stocks experienced volatility due to potential U.S. government investment in the sector, with initial sell-offs followed by recovery on positive news [1][2][3] Group 1: Market Reactions - Quantum stocks sold off early in the week, influenced by a Reuters report on potential U.S. export curbs to China [1] - A subsequent Wall Street Journal report indicated discussions between several quantum companies and the U.S. government for financial support, leading to a rebound in stock prices [2][3] - Quantum stocks, including IonQ, Rigetti, and D-Wave, faced significant declines, with D-Wave down 15% and Rigetti down 16% over the week [7] Group 2: Company Developments - SEALSQ Corp. launched the Quantum Shield QS7001, a secure chip with NIST-standardized post-quantum cryptography, and achieved a market cap exceeding $1 billion [4][5] - IonQ announced a new global benchmark in computational accuracy with 99.99% two-qubit gate fidelity, surpassing the previous record [6] - Despite the overall market decline, IonQ's stock performed relatively better, closing down only 4% over the past five days [6]

Group 1 - Quantum computing stocks experienced significant gains following reports that the US government plans to acquire equity stakes in these companies and provide federal funding for their growth and innovation [1][2] - Companies such as IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing saw notable increases in their share prices due to these developments [2] - The US Commerce Department is expected to invest a minimum of $10 million (£7.5 million) in these companies as part of a broader strategy to support national security [3] Group 2 - Despite initial gains, quantum computing stocks retraced some of their increases after the Commerce Department clarified that it is not currently negotiating equity stakes with these companies [4] - Rigetti Computing has been actively engaging with the US government regarding funding opportunities, reflecting ongoing interest in quantum computing from the Trump administration [5] - The Trump administration previously committed $1.2 billion (£900 million) for quantum research and an additional $2.7 billion (£2 billion) for developing practical quantum computing applications [5] Group 3 - In September, Rigetti Computing secured a $5.8 million (£4.3 million) contract with the US Air Force, while IonQ announced a partnership with the Department of Energy [6] - JPMorgan's announcement of a $1.5 trillion (£1.1 trillion) initiative to invest in industries critical to national security, including quantum computing, has contributed to the upward trend in quantum computing shares [6] - The US government has previously acquired stakes in companies like Intel, MP Materials, and Lithium Americas, indicating a strategic approach to investing in key industries [8]

Group 1 - D-Wave Quantum Inc. (NYSE:QBTS) experienced a significant stock price increase of 13.81%, closing at $31.06, following news of potential equity investment talks with the US government [1][3] - The company, along with IonQ Inc. and Rigetti Computing, is in negotiations with the Commerce Department for a minimum funding of $10 million, reflecting the government's focus on critical industries for economic growth [2][3] - The discussions are part of a broader strategy by the government to enhance domestic production in key sectors, following successful investments in lithium and rare earth companies [3] Group 2 - D-Wave recently redeemed 5 million outstanding warrants, which can be converted into shares, cash, or both, until November 19, 2025, potentially leading to the issuance of approximately 7.2 million shares with less than 2.1% dilution to existing shareholders [4]