Core Insights - D-Wave Quantum has emerged as the best-performing quantum computing stock in 2025, driven by significant revenue growth and technological advancements [1][5][9] Company Performance - D-Wave Quantum's revenue doubled in the third quarter, reaching $3.7 million, with bookings increasing by 80% sequentially to $2.4 million [5] - The company reported a total revenue of $21.8 million for the first nine months of 2025, with a full-year revenue forecast of $25.5 million [8][13] - Despite its growth, D-Wave continues to incur losses, with a reported operating loss of $27.7 million in the third quarter and a negative free cash flow of $55.8 million year to date [9] Technological Developments - D-Wave specializes in quantum annealing technology and launched its sixth-generation quantum computer, Advantage2, which is designed to solve complex computational problems [6] - The launch of Advantage2 has generated interest, including a notable 10 million euro booking from a research facility in Italy [7] Market Position - D-Wave Quantum's market capitalization has reached approximately $8.1 billion, despite its relatively small revenue base, resulting in a price-to-sales ratio exceeding 300 [13] - The company is well-capitalized with $836.2 million in cash, allowing it to fund operations and invest in research and development for several years [10] Future Outlook - Management plans to utilize cash reserves for research and development, focusing on expanding professional services and quantum computing as a service [12] - Investor interest provides D-Wave with the flexibility to raise capital if needed, but the stock remains high-risk due to the long timeline before profitability is expected [13][14]

Core Insights - The quantum computing market is gaining traction, with companies like IonQ, Rigetti Computing, and D-Wave Quantum being popular investment opportunities [1][4] - A new trend has emerged where investors are complementing their AI investments with quantum computing stocks, indicating a growing interest in this sector [2] - Nvidia is highlighted as a potentially smart investment in quantum computing due to its unique approach compared to competitors [3] Industry Overview - The quantum computing market is divided into pure-play companies and cloud hyperscalers like Microsoft, Alphabet, and Amazon, which are also investing in quantum technologies [4] - Pure-play companies have struggled to gain significant business traction due to the exploratory nature of quantum computing and limited commercial applications [5] - Heavy investments in research and development by pure-plays aim to achieve technological breakthroughs necessary for enterprise-level adoption [6] Nvidia's Role in Quantum Computing - Nvidia provides a comprehensive stack of hardware and software tools that support quantum supercomputers, including GPUs, CPUs, and a software platform [12] - The company's strategy is agnostic, focusing on integrating with various quantum systems rather than developing its own quantum chips [13] - Nvidia's approach allows it to leverage its existing AI infrastructure while expanding into quantum computing services, positioning itself as a leader in the broader AI market [14] Market Position and Valuation - As of November 24, Nvidia's forward price-to-earnings (P/E) multiple is 23.4, down from 34 times forward earnings a year ago, indicating market sentiment towards the stock [15] - Concerns about a potential AI stock market bubble and increased competition from Advanced Micro Devices and custom silicon designs are affecting investor perceptions [16] - Despite these challenges, Nvidia continues to innovate and expand its total addressable market (TAM) across various sectors, including quantum computing [17] - The current valuation of Nvidia stock is viewed as attractive, suggesting it may be a compelling opportunity for investors [18]

Core Insights - Nvidia's stock has increased by 22,660% over the past decade, primarily due to its data center GPUs for AI tasks, making it the world's most valuable company with a market cap of $4.3 trillion [1] - Investors are encouraged to explore the emerging quantum computing market, particularly IonQ, as a potential investment opportunity [2] Company Overview - IonQ distinguishes itself in the quantum computing sector by utilizing trapped ions for data processing, which allows for operation at room temperature, making it more scalable compared to traditional electron-based systems [7] - The company has launched three trapped-ion quantum systems: Aria, Forte, and Forte Enterprise, with plans for a fourth system, Tempo, and offers its quantum computing capabilities as a cloud service [8] Industry Context - Quantum computers are currently used mainly for niche research due to their size, cost, and energy inefficiency, but advancements could lead to smaller, more resilient, and power-efficient systems in the coming years [5] - The quantum computing market is expected to grow rapidly over the next decade, with IonQ having an early mover advantage [9]

Core Insights - Quantum computing is rapidly advancing, with significant breakthroughs occurring that may lead to real-world applications sooner than expected [4][5][6] - Major tech companies are investing heavily in quantum computing, indicating a growing recognition of its potential [2][11] - The Defiance Quantum ETF offers a diversified investment opportunity in the quantum computing sector, making it a practical choice for investors [3][10][15] Investment Landscape - The Defiance Quantum ETF includes top holdings such as Rigetti Computing ($73.3 million), Tower Semiconductor ($72.8 million), and Micron Technology ($60.3 million), among others [8] - The ETF was launched in 2018 and invests in approximately 70-80 stocks across various sectors related to quantum computing, with a reasonable expense ratio of 0.40% [10][12] - JPMorgan Chase, IBM, and Microsoft are among the companies committing substantial funds to quantum computing, with IBM planning to invest $30 billion in R&D [11] Market Dynamics - The rapid development in quantum computing mirrors the early days of AI, suggesting that early investment could yield significant returns [6][7] - The Defiance Quantum ETF's equal-weighted portfolio helps mitigate concentration risk, making it a safer option for investors looking to enter the quantum computing space [12][14] - The ETF's strategy of investing in a broad range of companies may be preferable for those looking to minimize risk in a high-growth, emerging sector [15]

CoreWeave - CoreWeave is not a quantum computing stock but is often associated with the sector due to its connection with NVIDIA and its AI-focused business model [3] - The company has a significant backlog of nearly $60 billion, with $50 billion in contracted remaining performance obligations (RPO) [3] - For the full year, CoreWeave expects approximately $5 billion in revenue, more than double from the previous year, but will incur $13 billion in capital expenditures (CapEx) and $1.4 billion in interest expenses [3] - The stock has seen a decline of nearly 15% due to lower-than-expected guidance for Q4 and the full year [4] - CoreWeave's growth is heavily dependent on external factors such as contractor performance and power availability [5] Rigetti Computing - Rigetti reported Q3 revenue of only $1.9 million, a decline of around 18% year-over-year, contrasting sharply with CoreWeave's nearly doubled revenue [6] - The company is in the early stages of quantum computing, with ambitious goals to deliver advanced quantum systems in the coming years [6] Rocket Lab - Rocket Lab reported record Q3 revenue of $155 million, up approximately 48% year-over-year, although it remains unprofitable [11] - The company has a backlog of 49 launches under contract, with 17 deals signed in Q3 alone [11] - Rocket Lab is affected by the government shutdown, which has delayed awards for key projects [12] AST SpaceMobile - AST SpaceMobile is building a satellite-based cellular network and has secured contracts with over 50 mobile network operators globally, covering nearly three billion subscribers [17] - The company reported just under $15 million in revenue for Q3 but has $1 billion in contracted revenue commitments [15] - AST SpaceMobile expects to launch a satellite every 1-2 months, aiming to deploy between 45 and 60 satellites by the end of next year [18]

Core Insights - Quantum computing is emerging as a significant technological advancement, potentially surpassing traditional computing capabilities by utilizing qubits instead of bits [2][4] - The Defiance Quantum ETF offers a diversified investment approach in the quantum computing sector, mitigating risks associated with stock picking in a volatile market [3][6] Group 1: Quantum Computing Potential - Quantum computing significantly enhances traditional computing power, with applications intersecting with AI and cloud computing [2] - The industry is still in its early stages, and while some companies have shown impressive returns, many lack products and revenue, leading to cash burn [5][7] Group 2: Investment Strategy - The Defiance Quantum ETF simplifies investment in quantum computing, providing exposure to both emerging quantum companies and established tech leaders like Advanced Micro Devices and Nvidia [6][7] - The ETF has returned over 387% since its inception, indicating strong performance despite the inherent risks of the sector [7] - The fund employs an equal-weighting strategy across nearly 80 holdings, reducing the risk of overexposure to any single stock [9][10]

Core Insights - Regetti Computing's shares have seen a significant increase of approximately 2,000% over the past year, despite a revenue miss in Q3 [1] - The company emphasizes the long-term potential of quantum computing, which is expected to revolutionize computing speed and energy efficiency [3][4] - Current focus remains on research and development (R&D), with a projected timeline of 3 to 4 years before achieving quantum advantage over classical computing [8] Company Overview - Regetti Computing currently has a market capitalization of $10 billion but reports minimal revenue, prompting discussions on how investors should value its shares [2] - The company is in the R&D phase, working towards perfecting quantum computing technology [4][5] Industry Context - Quantum computing is anticipated to produce computers that are millions to billions of times faster than conventional computers while consuming significantly less energy [3] - The industry is moving towards a hybrid computing ecosystem where quantum processing units (QPUs) will coexist with traditional CPUs and GPUs in data centers [10][11] - Companies like IBM and HSBC are beginning to showcase specific use cases for quantum computing, indicating progress in the field [6][7] Future Projections - The transition from R&D to monetization is uncertain, with expectations that practical workloads for quantum computers in data centers will emerge in the next 3 to 5 years [9][14] - The concept of quantum advantage, where quantum computing clearly outperforms classical computing, is projected to be realized in about 3 to 4 years [8][14]

Earnings Summary for Rigetti Computing - Rigetti Computing reported a third quarter operating loss of $20.5 million, exceeding the estimated loss of $20.1 million, with revenue of $1.9 million, which was below the expected $2.17 million [1][2] - The company also reported a loss per share of $0.62, significantly worse than the estimated loss of $0.05 [2][12] - The revenue figures are considered small, primarily derived from government contracts and consulting work [4][5] Market Reaction and Future Outlook - Despite the significant misses in earnings and revenue, the stock did not experience violent trading movements, with a downside of about 1.5% [2][3] - Investors view Rigetti as a potential long-term player in the quantum computing space, akin to Nvidia, but acknowledge the near-term challenges [5][6] - Any material breakthroughs or new contracts, especially from the U.S. government, could serve as catalysts for stock price recovery [6][9] Industry Context and Competitive Landscape - The quantum computing sector is still in its early stages, with significant capital flowing into speculative trades based on anticipated revolutionary technology [8][9] - Rigetti is competing with major players like Intel, IBM, and Google, which may impact its market positioning [12][13] - The company is focusing on building relationships with the Department of Defense, which could provide a strategic advantage [13][14] Earnings Summary for Core - Core reported a third quarter loss per share of $0.22, better than estimates ranging from $0.39 to $0.57 [14] - The net loss was $110.1 million, significantly better than the estimated loss of $299.6 million [14] - Revenue for the quarter was $1.36 billion, exceeding the expected $1.29 billion [15] Operational Insights and Market Dynamics - Core's backlog of orders as of September 30 was $55.6 billion, missing the street's expectation of $60 billion [17] - The company is investing heavily in building data centers and leasing Nvidia chips, which raises concerns about potential overcapacity in the future [18][19] - Analysts express concerns about the sustainability of business models for companies like Core that rely on overcapacity from hyperscalers [25][26]

Market Overview - The tech sector experienced a significant selloff, with approximately $500 billion lost from chip stocks, leading to a mixed performance in major indexes [3][4][5] - The NASDAQ composite rebounded by 0.51%, while the S&P 500 rose by 0.31% [3] - Bitcoin prices dipped below $100,000 but have shown a 10% increase since the start of the year [5] Technology Sector Insights - Active management in ETFs is gaining traction as investors seek to navigate volatility in the tech sector [6][8] - The focus on technology remains strong, with an emphasis on productivity gains and free cash flow generation [16][22] - Companies are exploring various themes within technology, including semiconductor manufacturing and data center infrastructure [19][23] Fast Casual Dining Trends - Cava has reduced its full-year sales growth forecast from 6-8% to 3-4% due to macroeconomic pressures affecting younger consumers [31][32] - The company has seen a decline in visit frequency among the 25-35 age demographic, attributed to rising costs and economic challenges [32][35] - Despite challenges, Cava reported a 20% year-over-year revenue growth and a 67% growth on a two-year basis [38] McDonald's Performance - McDonald's reported US store sales that exceeded forecasts for the second consecutive quarter, focusing on value offerings amid a challenging environment [57][59] - The company has implemented promotional strategies, including a $5 meal deal, to attract customers [58][60] - Analysts predict increased promotional activity across the restaurant industry as brands compete for market share [63][64] Analyst Calls and Stock Movements - Super Micro reported weaker-than-expected results, leading to an 8% drop in shares, but some analysts view this as a buying opportunity [53] - Pinterest's stock fell after an earnings miss and a weaker forecast, prompting price target cuts from multiple firms [54] - Yum Brands saw a price target increase following better-than-expected results, with potential plans to sell its Pizza Hut segment [56]

Core Insights - Investors are facing challenges in valuing pure-play quantum computing stocks, leading to high volatility in prices for companies like Rigetti, IonQ, D-Wave Quantum, and Quantum Computing Inc [1][2] - The potential of quantum computing could revolutionize various fields, with shares of these companies soaring by 100% or more this year [2] - The excitement around quantum technology raises questions about appropriate valuation, as seen with Rigetti's stock price surge from $1.06 to a recent high of $58 [3][4] Company Valuations - Rigetti's shares are currently priced around $38, reflecting a valuation over 1,000 times its sales, in stark contrast to Nvidia's 50 times sales [4] - Despite the soaring stock price, Rigetti remains unprofitable, although it reported a profit in Q1 2025 due to changes in the value of its securities [4] - The market capitalization of Rigetti stands at $13 billion, with forecast revenues of only $22 million, highlighting a significant disconnect in valuation [5] Market Dynamics - The "Quantum 4" includes Rigetti, IonQ, D-Wave, and Quantum Computing Inc, which have attracted significant trading interest [6] - Rigetti has become the fourth most actively traded stock among clients of Interactive Brokers, surpassing trading volumes of major companies like Apple and Amazon [3]