ZACKSยท2025-07-24 20:01Core Insights - NVIDIA Corporation's shares have increased by 27.1% this year, primarily driven by advancements in artificial intelligence (AI) [1] - D-Wave Quantum Inc. has experienced a significant share price increase of 141.7% year to date, following an 854% surge last year, positioning it as a strong competitor in the tech sector [2][9] D-Wave Quantum Highlights - D-Wave Quantum's stock price rose after analysts from Canaccord and B. Riley maintained a buy rating, with B. Riley increasing its price target from $20 to $22 [3] - The company reported first-quarter revenues of $15 million, a remarkable 509% increase year over year, surpassing total sales for all of 2024, which were $8.8 million [4][9] - D-Wave Quantum had 133 customers in the quarter, up from 128 the previous year, including government clients and private companies like Lockheed Martin [5] NVIDIA Highlights - NVIDIA's market capitalization briefly reached $4 trillion, surpassing Apple and Microsoft, with first-quarter revenues of $44.1 billion, a 69% increase year over year [6][9] - The company reported a net income of $18.8 billion for the quarter, a 26% increase from the same period last year, despite U.S. restrictions on H20 chip exports to China [7] - NVIDIA's demand for next-generation Blackwell chips and CUDA software is expected to enhance its financial performance [7][12] Investment Considerations - D-Wave Quantum's recent stock performance and revenue growth may encourage shareholders to retain their shares, while new investors should be cautious due to a reported net loss of $5.4 million in the first quarter [10][8] - NVIDIA's strategy of integrating quantum processing units with GPUs could pose challenges for D-Wave Quantum, as it positions itself for growth in the AI and quantum computing sectors [11][12] - Both companies currently hold a Zacks Rank 3 (Hold), indicating a neutral investment outlook [13]