What happened According to a February 17, 2026, SEC filing, Anson Funds Management LP sold its entire 5,373,455-share position in Quantum Computing Inc. (NASDAQ:QUBT)during the quarter. The estimated transaction value is $98.93 million, derived from average closing prices in the quarter. The fund reported a quarter-end position value drop of $98.93 million, capturing the combined effect of share sales and any price changes. What else to know Anson Funds Management LP has fully exited QUBT, bringing its ...

Core Viewpoint - The quantum computing sector is facing scrutiny from activist investors, with all four major publicly-traded companies being targeted for short-selling due to their high market valuations relative to modest revenues [1] Company Overview - D-Wave Quantum, one of the key players in the quantum computing industry, has seen its stock price triple since being targeted by short-seller Kerrisdale Capital, which questioned the efficacy of its technology [2][3] - D-Wave reported a revenue increase to $22 million for the most recent nine-month period, up from $6.5 million the previous year, despite a market cap of $7.4 billion [6] - The company has over 100 paying customers, including notable names like Ford and BASF, and recently secured a $10 million licensing deal with a Fortune 100 company [15][16] Market Dynamics - The total addressable market for quantum computing is estimated to be between $200 billion and $1 trillion, leading to speculative investments in the sector [8] - D-Wave's business model is distinct, with less than 10% of its revenue coming from government contracts, contrasting with many competitors that rely heavily on government funding [17] Technological Challenges - Quantum computing technology is complex, with qubits needing to be error-corrected, which presents significant engineering challenges [9][10] - D-Wave's recent acquisition of Quantum Circuits for $550 million aims to enhance its technology by improving the efficiency of qubit error correction [12][13] - The company acknowledges the difficulties in advancing quantum technology and the potential for delays in future product developments [11] Strategic Moves - D-Wave is focusing on commercializing its quantum annealing method, which optimizes solutions by identifying the lowest energy state [15] - The acquisition of Quantum Circuits is expected to revolutionize D-Wave's capabilities by reducing the number of physical qubits needed for error correction [14]

D-Wave and QCi logos over quantum chips in a data center, highlighting quantum computing stocks and AI demand. Key Points Despite recent successes, D-Wave Quantum shares are down by about 30% year-to-date, part of a broader sell-off in the quantum space. While most pure-play quantum firms have been heavily impacted by the dip, rival Quantum Computing has fallen by less than some of its peers. However, despite outperforming others in the industry, Quantum Computing carries heavy risks for investors asso ...

Core Viewpoint - Quantum Computing Inc. is attempting to differentiate itself in the quantum computing sector by focusing on immediate revenue-generating products rather than solely on building powerful quantum computers, but there are concerns about the company's financial health and management credibility [2][4]. Financial Performance - The company generated approximately $546,000 in revenue over the last 12 months, which is minimal compared to its market capitalization of $1.87 billion [6]. - Quantum Computing is spending tens of millions annually on development, with $555 million in cash reserves providing some financial stability [7]. - The company has issued over $840 million in additional common stock in the past year, indicating a willingness to dilute shareholder equity [8]. Management and Communication - The management of Quantum Computing has been criticized for making significant claims that are not well-supported, often overstating the company's capabilities [9]. - The company tends to issue press releases that imply more substantial commercial relationships than exist, with most contracts being one-off research grants rather than sustainable commercial agreements [10]. Market Outlook - There is a belief that Quantum Computing stock may significantly underperform the market, with concerns that it could potentially decline to zero [11].

Core Insights - The first-mover advantage for pure-play quantum computing stocks may be short-lived as competition increases from larger tech companies [1][16] - Quantum computing represents a significant global economic opportunity, estimated to create between $450 billion and $850 billion by 2040 [5][6] - Despite impressive stock rallies, the commercialization of quantum computing is still in its early stages, with risks of overestimation of adoption and optimization [12][11] Company Performance - As of mid-October, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen increases of up to 6,200% over the past year [2] - These companies have been buoyed by practical applications of quantum technology and partnerships with major clients [6][8] - JPMorgan Chase's $1.5 trillion Security and Resiliency Initiative includes quantum computing as a key investment area, signaling potential growth [9] Market Dynamics - Quantum computing is projected to be a $850 billion market, though it cannot match the multitrillion-dollar market of AI [5] - Major tech companies, referred to as the "Magnificent Seven," are investing heavily in AI and are likely to extend their reach into quantum computing [17][19] - The entry barrier for quantum computing is relatively low, allowing larger companies to potentially overshadow pure-play stocks [16][19] Risks and Challenges - The commercialization of quantum computing is still nascent, with widespread adoption not yet realized [12] - Share-based dilution is a significant risk, as these companies have collectively issued over $4.1 billion in stock to raise capital [13] - The competitive landscape is shifting, with larger companies already making strides in quantum technology, posing a threat to the longevity of pure-play stocks [18][19]

Core Insights - Quantum Computing Inc. (QUBT) possesses a significant competitive advantage in the photonics and quantum technology markets, primarily due to its U.S.-based thin-film lithium niobate (TFLN) photonic chip foundry in Tempe, AZ [1] Market Positioning - The TFLN market is currently valued at approximately $190 million and is projected to grow to an estimated $1.93 billion by 2029, with a compound annual growth rate (CAGR) of 39.2% [3] - QUBT's planned development of Fab 2 aims to support higher-volume production, indicating a strategy to capture increasing market demand [4] Financial Performance - QUBT's shares have increased by 4% over the past year, outperforming the Zacks Internet-Software industry and IONQ's declines of 16.9% and 11.5%, respectively [5] - The company raised over $1.5 billion in 2025 to scale operations and support commercialization efforts, significantly strengthening its balance sheet [10] Sales and Earnings Growth - QCi is expected to report a 466.7% increase in revenues for the fourth quarter, with earnings per share projected to improve by 91.5% year over year [13] - Zacks Consensus Estimates indicate substantial year-over-year growth in sales, with estimates of 122.53% for the current year and 284.34% for the next year [14] Real-World Validation - QCi secured a contract from the National Institute of Standards and Technology (NIST) to design and fabricate TFLN photonic integrated circuits, showcasing its advanced prototyping capabilities [11] - The company received multiple purchase orders from various institutions, highlighting the growing demand for its TFLN photonic chip foundry services [12] Challenges and Valuation - QUBT is prioritizing long-term platform leadership over immediate revenues, which may limit near-term revenue expansion due to low unit volumes and lengthy sales cycles [16][17] - The stock is currently trading at a forward price-to-sales ratio of 600, significantly higher than the industry average of 5.55, indicating potential overvaluation [18] Strategic Outlook - QUBT is entering a critical growth phase, supported by its differentiated domestic TFLN manufacturing foundry and a strengthened balance sheet, positioning itself to capture the expanding TFLN market [20]

Group 1: Core Insights - Quantum computing stocks are considered speculative investments with high technical, commercial, and regulatory uncertainty, including both pure-play quantum firms and larger diversified tech companies with quantum programs [2] - The companies mentioned, such as IonQ and D-Wave Quantum, have recently experienced the highest dollar trading volume among quantum computing stocks [2] Group 2: Company Summaries - IonQ, Inc. develops general-purpose quantum computing systems and provides access to its quantum computers through cloud platforms like AWS, Microsoft Azure, and Google Cloud Marketplace [3] - D-Wave Quantum Inc. offers a fifth-generation quantum computer called Advantage, along with a suite of open-source tools and a cloud-based service named Leap for real-time access to quantum computing resources [3] - Quantum Computing Inc. specializes in accessible and affordable quantum machines, including portable quantum computers and quantum random number generators, which enhance security in cryptographic applications [4]

Group 1 - Quantum Computing Inc. (NASDAQ:QUBT) completed the acquisition of Luminar Semiconductor for $110 million, enhancing its position as a vertically integrated provider of photonics and quantum platforms [1] - The acquisition combines Quantum Computing's thin-film lithium niobate technology with Luminar Semiconductor's expertise in lasers, detectors, packaging, and manufacturing, aiming to produce chip-scale quantum hardware that operates at room temperature [1] - Rosenblatt initiated coverage of Quantum Computing with a Buy rating and a $22 price target, citing the company's assets in photonics, compute, security, and sensing [2] Group 2 - The firm highlighted the potential of Quantum Computing's thin-film lithium niobate fabs to meet industry demand for integrated quantum photonics, nonlinear optics, and optical waveguides [3] - The stock's risk/reward profile is viewed favorably, presenting an immediate opportunity for investors to gain exposure to the quantum computing sector [3] - Quantum Computing Inc. serves commercial and government markets in the US with its integrated photonics solutions [3]

Core Insights - Quantum Computing Inc. (QCi) has completed the acquisition of Luminar Semiconductor, Inc. for $110 million, marking a significant step in its strategy to become a vertically integrated provider of photonics and quantum technology [1][2][3] Group 1: Acquisition Details - The acquisition is expected to enhance QCi's technology roadmap and add annual revenue to its financial profile [2] - LSI will operate as a wholly owned subsidiary of QCi, maintaining its commercial relationships in aerospace, defense, and industrial markets, which provide near-term revenue visibility [5] Group 2: Strategic Importance - The acquisition allows QCi to integrate its thin-film lithium niobate (TFLN) platform with LSI's capabilities in lasers, detectors, and manufacturing, enabling end-to-end control of photonic system design [3] - This integration positions QCi to deliver chip-scale quantum hardware that operates at room temperature, moving away from large cryogenic systems [3] Group 3: Market Positioning - The transaction aligns with U.S. demand for domestic technology solutions and reshoring initiatives, enhancing QCi's ability to serve government and defense-related customers [4] - QCi aims to leverage LSI's experience and extensive patent portfolio to advance its quantum innovations from technology to scalable manufacturing [5]

Core Insights - Rigetti Computing and Quantum Computing represent two distinct investment opportunities in the growing quantum computing market, with Rigetti being an established player and QCi focusing on experimental chips [1]. Company Comparison - Rigetti's stock increased nearly 60% over the past year, while QCi's stock only rose by 3%, indicating Rigetti's stronger market performance [2]. - Quantum computers utilize qubits to store data, allowing for simultaneous processing of zeros and ones, which enhances data handling and task execution speed compared to classical computers [3]. - Both companies are working to overcome the limitations of quantum computing, such as size, cost, power consumption, and error rates, by developing new technologies and more accessible platforms [4]. Technology Overview - Rigetti employs superconducting loops to accelerate electrons, achieving quantum states, but these systems require cryogenic refrigeration, making them costly to operate. They have lower coherence fidelity but higher gate fidelity compared to newer technologies [5]. - QCi focuses on photonic chips that use light for data processing, which can be manufactured in conventional fabs and operate at room temperature. However, they face challenges in scaling and have lower gate fidelity in complex operations [6]. Growth and Services - Rigetti is a "full stack" quantum computing company, producing its own quantum processing units (QPUs) and offering a cloud-based quantum-computing-as-a-service platform called Forest, positioning itself as a comprehensive solution for businesses interested in quantum systems [7].