The Motley Fool·2025-11-21 09:20Core Insights - The article discusses the advancements in AI technology by Quantum Computing Inc. (QCi) and IBM, highlighting their respective approaches and market positions in the AI industry [1][2]. Quantum Computing Inc. (QCi) - QCi is focused on developing quantum computers that utilize photons, which can operate at room temperature and be miniaturized, unlike IBM's current quantum technology [3]. - QCi's EmuCore quantum computer is designed for training AI models, offering faster data processing and lower energy consumption compared to traditional computers, although it reported only $384,000 in revenue for Q3 against operating costs of $10.5 million [5]. - The company raised $750 million through an equity offering in October to support its operations [5]. IBM - IBM's AI business generated $9.5 billion in Q3, contributing to total revenue of $16.3 billion, reflecting a 9% year-over-year increase [6][7]. - The company is developing its Nighthawk quantum processor, expected to achieve quantum advantage next year, which would enhance its AI capabilities significantly [8][9]. - IBM reported a net income of $1.7 billion in Q3 and has a dividend yield of over 2%, showcasing its profitability and commitment to returning value to shareholders [9][10]. Investment Comparison - IBM's strong sales and advancements in quantum computing position it as a more attractive investment compared to QCi, which has high operating costs and limited sales [13][14]. - QCi's price-to-sales (P/S) ratio has been significantly higher than IBM's, indicating that QCi's shares are overvalued relative to its sales performance [11][13]. - IBM's consistent dividend payments and established revenue streams make it a superior investment choice in the AI sector [14].