This is a story about God playing dice with the universe. Something Albert Einstein told us he didn't do back in 1926. Einstein was criticizing physicists theory of quantum mechanics.Yet a century after Einstein's denial, billions of dollars are being invested today in taking that theory and turning it into reality. With the prospect of a revolution in computing potentially larger even than generative A. I.Quantum computing is very high. Potential investors are increasingly asking us about the implications ...

Core Insights - IBM announced significant advancements in quantum computing, aiming for quantum advantage by the end of 2026 and fault-tolerant quantum computing by 2029 [1][11]. Quantum Processor Development - IBM introduced the Quantum Nighthawk processor, designed to achieve quantum advantage by solving problems more efficiently than classical methods, with delivery expected by the end of 2025 [3]. - Future iterations of the Nighthawk processor are projected to support up to 7,500 gates by the end of 2026, increasing to 10,000 gates in 2027, and potentially 15,000 gates by 2028 [3][5]. Quantum Advantage Tracking - IBM, along with partners, is contributing to a community-led quantum advantage tracker to validate quantum advantage claims, with the first confirmed cases expected by the end of 2026 [4][6]. - The tracker currently supports three experiments focused on observable estimation, variational problems, and efficient classical verification [6]. Error Correction and Fault-Tolerant Computing - IBM's Quantum Loon processor demonstrates all necessary components for fault-tolerant quantum computing, achieving efficient quantum error correction with a ten-fold speedup over existing methods [12][13]. - The company has successfully used classical hardware for real-time error decoding in under 480 nanoseconds, a year ahead of schedule [13]. Fabrication and Development Speed - IBM is transitioning to a 300mm wafer fabrication facility to enhance the development speed of quantum processors, achieving a ten-fold increase in physical complexity [14][15]. - The new facility allows for faster learning and improvement of quantum processor capabilities, including increased qubit connectivity and performance [15]. Software Enhancements - IBM's Qiskit software has been enhanced to provide developers with greater control, achieving a 24% increase in accuracy and reducing the cost of accurate result extraction by over 100 times [8][9]. - Future plans for Qiskit include extending computational libraries for machine learning and optimization by 2027 [10].

Welcome back. Take a look at shares of Regetti Computing lower this morning after reporting a miss on revenue in Q3. Stocks still up roughly 2,000% over the last year though amid this excitement over quantum computing and the AI boom.Joining us this morning in a CBC exclusive is Betti CEO Subode KC Carney. Sabot, welcome back. It's good to have you.>> Thank you for having me. I wonder how I hope you won't mind me asking how you recommend investors value the shares right now given you're a 10 billion market ...

Rigetti Computing (NasdaqCM:RGTI) Q3 2025 Earnings Call November 11, 2025 08:30 AM ET Company ParticipantsJeff Bertelsen - CFOSubodh Kulkarni - President and CEOTyler Anderson - Equity Research AssociateQuinn Bolton - Managing Director of Equity ResearchTroy Jensen - Managing DirectorConference Call ParticipantsSteven Chin - AnalystBrian Kinstlinger - Director of Research and Senior Technology AnalystDavid Williams - Equity Research AnalystCraig Ellis - Director of Research and Senior Semiconductor and Capi ...

Financial Data and Key Metrics Changes - Revenues in Q3 2025 were $1.9 million, down from $2.4 million in Q3 2024, impacted by the expiration of the National Quantum Initiative [10] - Gross margins decreased to 21% in Q3 2025 from 51% in Q3 2024, attributed to the composition of revenue and pricing variability [10] - Total operating expenses increased to $21 million in Q3 2025 from $18.6 million in the same period of the prior year, due to salary increases, new hires, and higher stock-based compensation [11] - GAAP net loss for Q3 2025 was higher than in Q3 2024, primarily due to a non-cash change in the fair value of derivative warrant and earn-out liabilities [12] - As of September 30, 2025, the company had approximately $558.9 million in cash and equivalents, with no debt, and this increased to approximately $600 million by November 6, 2025 [12] Business Line Data and Key Metrics Changes - The company announced purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, which are upgradable [5] - A three-year, $5.8 million contract from the Air Force Research Laboratory (AFRL) was secured to advance superconducting quantum networking [6] Market Data and Key Metrics Changes - The expiration of the National Quantum Initiative and its pending reauthorization in the U.S. Congress impacted revenue, with future sales dependent on its renewal [10] - The company is engaged with various academic and government sectors to enhance quantum computing capabilities, including collaborations with Montana State University and the Center for Development of Advanced Computing [7][8] Company Strategy and Development Direction - The company aims to deliver a 150-plus qubit system by the end of 2026 and a 1,000-plus qubit system by the end of 2027, with anticipated gate fidelity improvements [4][5] - The strategy includes deepening support for quantum computing capabilities in academic and government sectors and integrating with NVIDIA's NVLink for AI supercomputer quantum integration [8] - The company plans to open an Italian subsidiary to accelerate business opportunities in the region [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future sales from recent contracts and collaborations, which are expected to benefit revenue in Q4 2025 and into 2026 [10] - The management acknowledged challenges in achieving long-range coupling and error correction, which are critical for future milestones [17] - The company is optimistic about being selected for phase B of the DARPA Quantum Benchmarking Initiative project in the coming months [18] Other Important Information - The company is exploring options for potential M&A to accelerate its roadmap, although it believes it can execute its current plans organically [47][48] - The company is considering significant capital expenditures for upgrading its chip fabrication facility in the future [56][60] Q&A Session Summary Question: Can you talk about DARPA phase B and the feedback received? - Management noted that while they were not selected for phase B, constructive feedback was received regarding error correction and long-range coupling, which are important for future milestones [16][17] Question: What is the comfort level for achieving 99% fidelity by 2027? - Management expressed confidence in achieving 99.8% fidelity with 1,000 qubits by the end of 2027, emphasizing the importance of error correction [20][22] Question: Will the 150-qubit and 1,000-qubit systems use chiplet-based approaches? - The company plans to use 9-qubit chiplets for the 150-qubit system and 36-qubit chiplets for the 1,000-qubit system [27] Question: How will revenue recognition work for the Novera system sales? - Revenue for the two Novera systems will be recognized upon shipment, expected in Q1 and Q2 of 2026 [31] Question: What is the expected gross margin profile moving forward? - Management indicated that while gross margins were lower in Q3, future sales, particularly from Novera, are expected to have better margins [64] Question: How does the recent funding for the National Quantum Initiative affect the business? - Management noted that the reinstatement of funding to $625 million over five years is a positive step, although discussions for higher funding amounts are ongoing [81][82]

Financial Data and Key Metrics Changes - The company achieved record revenues of $39.9 million in Q3 2025, representing year-on-year growth of 222% and exceeding the high end of its guidance by 37% [24][31] - Adjusted EBITDA loss for the quarter was $48.9 million, with GAAP operating expenses totaling $208.7 million [26][27] - GAAP EPS for the quarter was a loss of $3.58, primarily impacted by mark-to-market adjustments related to outstanding warrants [27][28] - Cash, cash equivalents, and investments as of September 30, 2025, were $1.5 billion, with an additional $2 billion raised in October, bringing the pro forma cash balance to $3.5 billion [28][29] Business Line Data and Key Metrics Changes - The company reported significant growth in its quantum computing, networking, sensing, and cybersecurity segments, with a focus on integrated solutions [24][34] - The acquisition of Oxford Ionics and Vector Atomic has expanded the company's capabilities in quantum computing and sensing, respectively [6][9] - The company is on track to deliver its 256-qubit quantum chip in 2026, which is expected to leverage existing semiconductor supply chains for rapid scaling [19][30] Market Data and Key Metrics Changes - Approximately 70% of the company's business is now U.S.-based, with 30% coming from international markets, a shift from nearly all U.S.-based a year ago [25] - The company is pursuing opportunities in various countries, including Australia, Italy, South Korea, and Japan, indicating a growing international footprint [25] Company Strategy and Development Direction - The company aims to lead in quantum computing, networking, sensing, and cybersecurity by expanding its technical lead and creating integrated solutions [10][16] - IonQ is focused on building a quantum ecosystem that combines hardware, software, and applications to create a competitive advantage [58] - The company is committed to operational excellence and is investing in its infrastructure to support growth [29][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's position as a leader in quantum technology and its ability to capitalize on emerging opportunities [17][31] - The company anticipates stronger Q4 revenues than Q3, breaking previous seasonal trends [31] - Management highlighted the importance of quantum cybersecurity and sensing solutions in addressing current market needs [34][42] Other Important Information - The company has over 1,100 patents pending and granted, reflecting its commitment to innovation and intellectual property development [11] - IonQ's acquisition strategy has been pivotal in enhancing its capabilities and market position [6][9] Q&A Session Summary Question: How much of the revenue upside came from core quantum computing versus security, sensing, and networking? - Management indicated that the ability to sell integrated solutions has been crucial, with significant contributions from quantum security and networking [32][34] Question: What applications are currently most popular among government and commercial customers? - Management noted strong interest in quantum cybersecurity and solutions for logistics and maintenance in the defense sector [38][39] Question: How has the government shutdown impacted upcoming deals? - Management reported no material impact from the government shutdown, maintaining confidence in ongoing projects [51][52] Question: Will the Oxford chip be in the sixth-generation computer launching in 2026? - Yes, the 256-qubit device based on electronic qubit control will be part of the 2026 roadmap [46] Question: What are the trends in operating expenses and share count? - Management plans to continue increasing R&D and innovation spending, with an expected share count of around 350 million by year-end [47][50]

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 - The iShares Russell 2000 ETF's top holdings have experienced significant gains, with all top 10 holdings posting triple-digit increases, attracting retail investors' attention [1][5]. Group 1: Top Holdings Performance - Bloom Energy Corp. has seen its stock price increase by over 615% since April, driven by commercial successes and record quarterly revenues [2]. - Credo Technology Group's share price surged nearly 300%, fueled by high demand from hyperscalers investing in AI infrastructure [3]. - IonQ, a leader in quantum computing, experienced a stock price increase of more than 120% due to growing commercialization and enthusiasm for quantum technology [4]. - Oklo Inc. has developed advanced nuclear power plants for AI data centers, with its stock rising nearly 500% in the past six months [4]. - Other notable performers include Kratos Defense & Security Solutions (up 164%), Nextracker Inc. (up more than 140%), Rigetti Computing (up 367%), AeroVironment (up more than 140%), and Sterling Infrastructure (up more than 150%) [7]. Group 2: Market Trends - The performance of the top 10 holdings indicates that small-cap disruptors are transitioning from speculative investments to becoming favorites among retail investors and essential growth engines for investment portfolios [6].

Core Insights - The Pentagon is advancing in quantum computing, with Rigetti Computing Inc's pivot reflecting a similar trajectory to Palantir Technologies Inc, which initially focused on defense funding before expanding into commercial markets [1][3]. Government and Industry Dynamics - Rigetti's CEO emphasizes that the current demand is driven by government-funded sectors such as defense and energy, rather than financial clients [2]. - National programs are progressing faster than corporate labs in areas like encryption-resistant security systems and advanced materials research [2]. Market Positioning - Rigetti's recent $5.7 million orders for the Novera system, set for delivery in 2026, indicate a shift from research access to owned infrastructure in quantum computing [4]. - As governments in the U.S., Europe, and Asia integrate quantum computing into their strategies, Rigetti aims to be a key hardware provider for sovereign-grade systems [4]. Future Potential - The CEO anticipates that demand from finance and pharmaceuticals will increase as breakthroughs in qubits and algorithms bring the field closer to achieving quantum advantage [5]. - A significant advancement in quantum machine learning or chemistry simulation could trigger a rapid adoption across multiple sectors, similar to the swift integration of AI technologies [5]. Strategic Comparisons - Rigetti's approach mirrors Palantir's early strategy of securing government contracts to refine its products before targeting commercial clients [6]. - The company is positioning itself as a trusted quantum infrastructure provider, potentially benefiting from defense contracts that support years of research and development [6][7].

Core Insights - Rigetti Computing Inc is making significant strides towards its goal of developing a 1,000+ qubit, error-corrected quantum system, having secured $21 million in contracts for 2025 [1][6] - The company emphasizes the importance of its proprietary chiplet architecture and in-house foundry, Fab-1, in achieving high qubit counts and fidelity [5][6] Company Progress - The $21 million contracts are seen as key milestones that demonstrate tangible progress in Rigetti's ambitious four-year revenue roadmap [3][4] - CEO Subodh Kulkarni noted that there is no single factor driving progress, but rather a combination of efforts from a highly skilled team [2][4] Technology and Innovation - Rigetti's chiplet architecture has been validated, and the company is confident that its planned 100+ qubit system for the end of 2025 will maintain high fidelity [5][6] - Fab-1 is positioned to support R&D efforts necessary to meet the expected qubit counts and fidelity [6] Financial Contracts - The contracts include various deals such as two Novera systems totaling approximately $5.7 million, a $5.8 million AFRL contract, and a £3.5 million consortium for deploying a 36-qubit system [8]