Artificial intelligence (AI) is undoubtedly a growing field, and investors always tend to think about graphic processing unit (GPU) makers like NVIDIA Corporation (NVDA) and AI-driven cloud behemoths such as Microsoft Corporation (MSFT) . However, quantum computers are the next big thing in the tech space, as they can use quantum mechanics to help with AI workloads and solve problems faster than traditional ones. As a result, some big players in the quantum computing space such as Rigetti Computing, Inc. (R ...

Quantum Trade Analysis - The quantum trade remains active and profitable for both short and long positions, provided the timing is correct [1] Portfolio Strategy - The Pragmatic Investor focuses on building robust and diversified portfolios aimed at preserving and increasing wealth [1] Analyst Background - James Foord, an economist with a decade of experience in global market analysis, leads The Pragmatic Investor [1]

Microsoft Corp (NASDAQ:MSFT) is making waves in the quantum computing sector with the announcement of its Quantum Ready program for businesses, urging businesses to be "quantum-ready" in 2025. The initiative marks a significant milestone, as the tech giant proclaimed "we are at the advent of the reliable quantum computing era." Wall Street is already reacting to the news. Pre-market, Microsoft stock is up 1.3%, with the announcement also boosting shares of quantum computing stocks. At last glance, D-Wave Qu ...

SEATTLE, Jan. 15, 2025 /PRNewswire/ -- Spectral Capital Corporation (OTCQB: FCCN), a pioneer in providing its deep quantum technology platform, is pleased to announce the filing of a critical patent in quantum cybersecurity."Over the past three decades, I have been deeply involved in the cybersecurity industry, including founding a leading-edge company that addressed some of the most complex challenges in the field," said Sean Michael Brehm, chairman of Spectral. "Quantum computing elevates cybersecurity ri ...

All it took to derail a rally that had sent shares of pure-play quantum computing stocks soaring was a single comment from a tech CEO. When Nvidia's Jensen Huang suggested that a useful quantum computer was likely decades away, shares of IonQ (IONQ 5.92%) and D-Wave Quantum (QBTS 23.50%) fell off a cliff. As of midday Tuesday, both stocks were down at least 45% from their recent highs.Quantum computing is a technology that has tremendous long-term potential, but no one has yet cracked the code on how to suc ...

Quantum computing holds the potential to radically transform the world. It could accelerate the discovery of new drugs. It could help design super-strong new materials. It could make artificial intelligence (AI) more powerful.But quantum computing isn't there yet. And the timeline for the technology to mature could take longer than many people expect.Nvidia CEO Jensen Huang and Meta Platforms CEO Mark Zuckerberg recently poured cold water on some of the hype surrounding quantum computing. However, at least ...

Sometimes, it just takes a little momentum for a stock market narrative to start. This is precisely what happened with quantum computing stocks in late 2024. Stocks like Rigetti (RGTI -32.25%), Quantum Computing (QUBT -27.39%), and IonQ (IONQ -13.83%) have shot up hundreds of percentage points in the last six months, crushing the returns of the hottest artificial intelligence (AI) stocks. The momentum began with the idea that quantum computing could help with AI workloads and was accelerated by a breakthrou ...

Company Analysis - D-Wave (NYSE: QBTS) has developed a significant and sustainable competitive advantage over its immediate competitors IONQ, RGTI, QUBT, as well as major players in the quantum computing world like MSFT, GOOG, and IBM [1] - The company is considered to have disruptive technology and growth potential, making it a focus for investment analysis [1] Industry Focus - The analyst focuses on small to mid-cap companies with disruptive technology, particularly in the quantum computing sector [1] - The electrification of everything is a current area of focus for the analyst, indicating a broader trend in the industry [1] Investment Strategy - The analyst invests with a two-year time frame but often keeps investments for far longer, reflecting a long-term investment approach [1] - The analyst's family history of investing through major market events has shaped a strategy of choosing winners, avoiding losers, cutting losses early, and letting winners run [1] Analyst Background - The analyst has an MBA and qualifications in accounting and company valuation, with a career beginning at Bank of America in the 1980s [1] - The analyst's family has a history of investing in computers, banking stocks, transport, and utilities, with some original holdings still retained [1]

Quantum Computing Market Overview - IonQ and Rigetti are generating consistent revenues but remain unprofitable with high valuations [1] - IonQ has an enterprise value of $6.3 billion, 75 times its expected 2025 revenue of $83 million [1] - Rigetti has an enterprise value of $2.7 billion, 171 times its projected 2025 revenue of $16 million [1] - Both companies trade at 43 and 77 times their 2026 revenue estimates, reflecting a bullish outlook for the quantum computing market [2] Impact of Nvidia CEO's Comments - Nvidia CEO Jensen Huang predicted it could take 15 to 30 years to bring "very useful quantum computers" to market, requiring a million more qubits than currently available [3] - Huang's cautious comments caused IonQ and Rigetti stocks to plunge 39% and 45% respectively on Jan 8 [4] - The comments highlighted the challenges of scaling quantum computers and their current niche applications [6][7] Company-Specific Developments - IonQ is developing "trapped ion" technology to shrink QPU size and reduce errors, but faced a setback with the departure of co-founder Chris Monroe in 2023 [9] - Rigetti launched its Novera QPU, a 9-qubit commercial quantum computer priced at $900,000, and deployed its 84-qubit Ankaa-3 system with over 99% error detection [10] - Rigetti's founder Chad Rigetti stepped down in December 2022, but subsequent product launches have addressed some concerns [13] Growth Projections - IonQ's revenue is expected to grow at a CAGR of 89% from 2023 to 2026, reaching $145 million [14] - Rigetti's revenue is projected to grow at a CAGR of 43% from 2023 to 2026, reaching $35 million [14] Market Sentiment and Valuation Concerns - The quantum computing market's slower-than-expected growth could lead to downward revisions in long-term estimates and valuations [2] - Both IonQ and Rigetti experienced meme stock-like valuations, which were vulnerable to market sentiment shifts [8] - The companies' high valuations and unprofitability make them risky investments despite their rapid growth [1][12]

Stock Performance - D-Wave Quantum was down 31 4% Quantum Computing down 24 7% and Rigetti Computing down 25 5% as of 11 16 a m ET [1] - Quantum computing stocks like D-Wave Quantum (QBTS -30 65%) Quantum Computing (QUBT -23 77%) and Rigetti Computing (RGTI -28 33%) tumbled again on Monday for the second time in just three sessions [6] Company Financials - Quantum Computing has less than $1 million in revenue over the last four quarters [2] - Rigetti Computing is the largest of the three with nearly $12 million in trailing revenue over the last four quarters [3] - D-Wave announced fiscal 2024 bookings would top $23 million up 120% from fiscal 2023 levels and Q4 bookings would be at least $18 million up 500% from the quarter a year ago [5] - D-Wave filed for a stock sale plan allowing it to sell up to $150 million in stock [7] Industry Sentiment - Meta Platforms CEO Mark Zuckerberg expressed skepticism about quantum computing stating it is still quite a ways off from being a very useful paradigm [4] - Nvidia CEO Jensen Huang previously stated quantum computing technology was 15 to 30 years away from being very useful [6] - D-Wave CEO Alan Baratz countered the skepticism stating that some quantum computing solutions are maturing faster than others and D-Wave's annealing quantum computing solutions are currently available and solving real problems [5] Market Valuation - Quantum computing stocks still trade at a valuation of over $1 billion making them very expensive for development-stage companies [9] - The sector looks overvalued after last month's surge despite D-Wave's encouraging financial update [9] Investor Behavior - Speculative investors could take a small position in D-Wave or its peers but competition from Alphabet means success in quantum computing doesn't guarantee success for these stocks [8] - Tech stocks fell broadly in what seemed to be risk-off behavior as bets on Federal Reserve rate cuts declined after a strong jobs report last Friday [6]