The investment outlook for 2026 remains very positive for D-Wave D-Wave Quantum Inc. ( QBTS ). With customers, production volumes, and year-over-year growth figures nearing triple digits, D-Wave is leading its competition in commercializing quantum while they are stillHi, I'm Yiannis. Spotting winners before they break out is what I do best.Experience: Previously worked at Deloitte and KPMG in external/internal auditing and consulting. Education: Chartered Certified Accountant, Fellow Member of ACCA Global, ...

Core Viewpoint - D-Wave Quantum Inc. announced a major merger agreement to acquire Quantum Circuits Inc. for $550 million, which includes $300 million in stock and $250 million in cash, aiming to strengthen its position in the quantum computing market [1] Strategic Rationale - The acquisition adds Quantum Circuits' error-corrected gate-model technology to D-Wave's commercial systems, which is expected to accelerate the development of larger, fault-tolerant quantum computers [2] - D-Wave aims to bring superconducting gate-model systems to market as early as 2026 [2] Technology Benefits - Quantum Circuits' dual-rail technology features built-in error detection and enhances qubit quality, potentially reducing the physical resources required to create logical qubits [3] - The merger is anticipated to expand the range of practical quantum applications [3] - D-Wave plans to establish an expanded R&D hub in New Haven, Connecticut, with Rob Schoelkopf, co-founder of Quantum Circuits, joining the initiative [3] Company Leadership Statements - D-Wave's CEO, Alan Baratz, stated that the company has solidified its position as a leader in superconducting quantum computing, and the merger will enhance both annealing and gate-model offerings [4] - Rob Schoelkopf emphasized that the deal brings fault-tolerant, scalable quantum computing closer to realization [4] Next Steps - The merger requires regulatory clearance and listing approval for shares on the NYSE, with an expected closing date in late January 2026 [5] - D-Wave plans to file a Form 8-K with the SEC to outline key terms of the transaction [5] - D-Wave Quantum shares rose 2.40% to $32.02 at the time of publication [5]

Core Viewpoint - The combined entity, D-Wave, aims to introduce quantum computers to the market by 2026 [1] Company Summary - D-Wave is focused on the development and commercialization of quantum computing technology [1]

Core Viewpoint - D-Wave Quantum has emerged as a leader in the quantum computing sector, with its stock surging nearly 200% over the past year, driven by industry trends and company-specific developments [1]. Industry Overview - The quantum computing industry gained momentum in late 2024 following Google's announcement of a new quantum chip, which sparked investor interest in potential commercialization [3]. - Speculation about U.S. government support for quantum technology, particularly in light of geopolitical concerns, has further fueled investor enthusiasm [4][5]. Company Positioning - D-Wave Quantum differentiates itself by focusing on quantum annealing, a specific technology for solving optimization problems, unlike competitors like Google and IBM that pursue general-purpose quantum computing [6]. - The company plans to adopt a "picks-and-shovels" strategy by selling pre-built quantum annealing devices to enterprise clients [7]. Financial Performance - D-Wave Quantum reported a 100% year-over-year revenue increase, reaching $3.5 million, with notable clients in both public and private sectors [8]. - Despite the growth, the company's revenue remains modest relative to its $10 billion market cap, and it reported a significant operating loss of $27.7 million in the third quarter [9]. - The company holds $836.2 million in cash and equivalents, providing a buffer against immediate financial distress, but lacks a clear path to profitability [9]. Future Outlook - The quantum industry is expected to continue generating hype in 2026, with ongoing technological advancements and potential government initiatives to maintain U.S. leadership [10]. - D-Wave's stock is currently valued at a high price-to-sales ratio of 383, significantly above the S&P 500 average of 3.4, suggesting that investors may need to be cautious before committing [11].

Core Insights - Investor optimism towards quantum computing is at a new high as of 2026, driven by technological advancements and strong stock performance in 2025 [1][5] - D-Wave Quantum (QBTS) saw a remarkable 211% increase in share price in 2025, while Rigetti Computing (RGTI) experienced a 45% gain, both outperforming NVIDIA's 38.8% increase [1][2][9] - The global quantum computing market is expected to grow from approximately $0.8 billion in 2025 to around $1.08 billion in 2026, indicating a robust CAGR of about 35% over the next decade [6][7] Company Performance - D-Wave Quantum reported a 100% year-over-year revenue growth and a 156% increase in gross profit, ending Q3 2025 with over $836 million in cash [9][12] - Rigetti Computing achieved 99.5% median two-qubit gate fidelity and increased cash resources to approximately $575 million, supporting its R&D and commercialization efforts [9][15] - Both companies are expected to see significant earnings and revenue growth in 2026, with D-Wave projected to grow earnings by 7% and revenue by 61.1%, while Rigetti is expected to see earnings growth of 74.3% and revenue growth of 197.6% [13][16] Market Trends - The quantum computing market is anticipated to witness a CAGR approaching 41.8% through 2030, driven by hardware deployments and expanding software ecosystems [7] - Major technology platforms like IBM and Google are making significant advancements in quantum hardware, which is crucial for the sector's growth [8][10] - The involvement of quantum enablers such as Intel and NVIDIA is increasing, providing essential infrastructure for the integration of quantum systems into practical applications [10][11]

Group 1 - D-Wave Quantum and Quantum Computing Inc. represent two distinct investment opportunities in the quantum computing market, with D-Wave being a more established provider of quantum processing units and services, while QCi focuses on developing photonic quantum chips [1][2] - Over the past year, D-Wave's stock has nearly tripled, contrasting with QCi's stock, which has decreased by 35%, indicating a significant performance disparity between the two companies [2] - D-Wave's quantum systems utilize superconducting flux qubits, enabling efficient quantum annealing services that help organizations optimize workflows and logistics by identifying the most efficient computing scenarios [7] Group 2 - D-Wave's Advantage2 quantum system, featuring a 4,400-qubit QPU, can solve 3D lattice problems approximately 25,000 times faster than its predecessor while consuming less power, showcasing advancements in its technology [8] - The sales of D-Wave's quantum systems, priced between $20 million and $40 million, can provide temporary revenue boosts, although the majority of its recurring revenue is generated from its cloud-based Leap platform [8] - Quantum computers, while capable of processing larger data sets faster than classical computers, are still limited by their size, cost, power consumption, and error rates, which restricts their current applications primarily to niche research [5][6]

Generates revenue through the sale of quantum hardware, subscription-based cloud services, and professional onboarding and deployment services for enterprise clients.What is the broader context for this transaction given D-Wave Quantum's recent stock performance? The sale occurred after a period of substantial appreciation, with D-Wave Quantum shares up 567.52% year-over-year as of Dec. 5, 2025, suggesting that liquidation is paced to match remaining share capacity rather than ongoing accumulation.Did the t ...

Core Insights - D-Wave has announced a significant breakthrough in quantum computing, achieving scalable, on-chip cryogenic control for gate-model qubits, which is claimed to be an industry first [1] - This advancement addresses a major challenge in building commercially viable and scalable gate-model quantum computers by reducing complexity and resource requirements [1][2] Company Developments - D-Wave has made several notable announcements in the past year, including achieving "quantum supremacy" by simulating the properties of magnetic materials with its Advantage2 annealing quantum computer [3] - The company secured a $12 million deal to expand its presence in Europe [3] Stock Performance - D-Wave's stock has seen a dramatic increase of over 200% in the past year, rising from under $1 two years ago to nearly $31 as of January 5 [4] Technological Investment - The company has invested heavily in quantum technology for a decade, leading to the recent advancements in gate-model programs, which are seen as a differentiating factor for D-Wave [5]

Core Viewpoint - Quantum computing is an emerging technology with significant potential, but current companies in the sector are facing high valuations and substantial cash burn, making them speculative investments [1][7][17]. Company Summaries - IonQ has a market cap of approximately $16 billion, with projected revenues of $106 million to $110 million in 2025, resulting in a price-to-sales ratio of 145. The company expects a loss of $206 million to $216 million for the year [1][3]. - Rigetti Computing and D-Wave Quantum are valued at less than $10 billion each, generating only a few million dollars in revenue per quarter, indicating speculative valuations [1][3]. - IonQ reported a net loss of $1.05 billion in Q3 with revenues just under $40 million, highlighting the cash burn issue faced by these companies [8]. Industry Insights - The quantum computing sector is compared to the AI industry, which has seen companies with market caps exceeding $1 trillion. If quantum computing stocks achieve similar success, they could potentially generate significant returns for investors [2][6]. - Current conditions in the quantum computing sector are reminiscent of the space exploration industry in 2021, where initial optimism led to significant crashes [14][15]. - The commercialization of quantum computing technology is expected to take several years, with optimistic forecasts suggesting viability by 2030 [10][11]. Investment Considerations - Investors are advised to monitor quantum computing stocks carefully, as the current high valuations may not reflect future performance. Many years of optimistic results are already factored into share prices [12][13]. - Investing in a quantum computing ETF could provide exposure to the sector while mitigating risks associated with individual stocks [9]. - The potential for major returns exists, but the speculative nature of these stocks means that investors should be cautious and consider other opportunities in the meantime [17][18].

Core Insights - NVIDIA Corporation (NVDA) reported strong quarterly results in 2025, driven by the AI boom, with a stock surge of 38.8% last year despite U.S.-China trade challenges [2] - D-Wave Quantum Inc. (QBTS) and Palantir Technologies Inc. (PLTR) outperformed NVIDIA in 2025, with share increases of 181.2% and 135% respectively, indicating strong momentum [3] D-Wave Quantum Inc. (QBTS) - D-Wave's revenues reached $3.7 million in Q3 2025, nearly doubling year over year and increasing by 20.8% sequentially, with total revenues for the first nine months at $21.8 million, a 235% increase from the previous year [4] - The rollout of the Advantage2 platform and expansion of its customer base contributed to revenue growth, with bookings of $2.4 million in Q3 2025, up 3% year over year and 80% quarter over quarter [4] - D-Wave is projected to achieve earnings growth of 73.3% this year, with brokers predicting an average short-term price target of $38.71, indicating a 47.5% increase from the last closing price of $26.25 [5] Palantir Technologies Inc. (PLTR) - Palantir's Q3 revenues were $1.18 billion, reflecting a 63% year-over-year increase and an 18% sequential rise, driven by demand for its AI platform among government and commercial clients [9] - The company expects full-year 2025 sales to be between $4.396 billion and $4.400 billion, alongside a positive GAAP net income [9] - Palantir's anticipated earnings growth rate for the current year is 78.1%, with brokers raising the average short-term price target to $192.67, a 6.5% increase from $180.84, and a highest target of $255, suggesting a potential 41% upside [10]