Core Insights - Investor optimism towards quantum computing is at a new high as of 2026, driven by technological advancements and strong stock performance in 2025 [1][5] - D-Wave Quantum (QBTS) saw a remarkable 211% increase in share price in 2025, while Rigetti Computing (RGTI) experienced a 45% gain, both outperforming NVIDIA's 38.8% increase [1][2][9] - The global quantum computing market is expected to grow from approximately $0.8 billion in 2025 to around $1.08 billion in 2026, indicating a robust CAGR of about 35% over the next decade [6][7] Company Performance - D-Wave Quantum reported a 100% year-over-year revenue growth and a 156% increase in gross profit, ending Q3 2025 with over $836 million in cash [9][12] - Rigetti Computing achieved 99.5% median two-qubit gate fidelity and increased cash resources to approximately $575 million, supporting its R&D and commercialization efforts [9][15] - Both companies are expected to see significant earnings and revenue growth in 2026, with D-Wave projected to grow earnings by 7% and revenue by 61.1%, while Rigetti is expected to see earnings growth of 74.3% and revenue growth of 197.6% [13][16] Market Trends - The quantum computing market is anticipated to witness a CAGR approaching 41.8% through 2030, driven by hardware deployments and expanding software ecosystems [7] - Major technology platforms like IBM and Google are making significant advancements in quantum hardware, which is crucial for the sector's growth [8][10] - The involvement of quantum enablers such as Intel and NVIDIA is increasing, providing essential infrastructure for the integration of quantum systems into practical applications [10][11]

Group 1 - D-Wave Quantum and Quantum Computing Inc. represent two distinct investment opportunities in the quantum computing market, with D-Wave being a more established provider of quantum processing units and services, while QCi focuses on developing photonic quantum chips [1][2] - Over the past year, D-Wave's stock has nearly tripled, contrasting with QCi's stock, which has decreased by 35%, indicating a significant performance disparity between the two companies [2] - D-Wave's quantum systems utilize superconducting flux qubits, enabling efficient quantum annealing services that help organizations optimize workflows and logistics by identifying the most efficient computing scenarios [7] Group 2 - D-Wave's Advantage2 quantum system, featuring a 4,400-qubit QPU, can solve 3D lattice problems approximately 25,000 times faster than its predecessor while consuming less power, showcasing advancements in its technology [8] - The sales of D-Wave's quantum systems, priced between $20 million and $40 million, can provide temporary revenue boosts, although the majority of its recurring revenue is generated from its cloud-based Leap platform [8] - Quantum computers, while capable of processing larger data sets faster than classical computers, are still limited by their size, cost, power consumption, and error rates, which restricts their current applications primarily to niche research [5][6]

Generates revenue through the sale of quantum hardware, subscription-based cloud services, and professional onboarding and deployment services for enterprise clients.What is the broader context for this transaction given D-Wave Quantum's recent stock performance? The sale occurred after a period of substantial appreciation, with D-Wave Quantum shares up 567.52% year-over-year as of Dec. 5, 2025, suggesting that liquidation is paced to match remaining share capacity rather than ongoing accumulation.Did the t ...

Core Insights - D-Wave has announced a significant breakthrough in quantum computing, achieving scalable, on-chip cryogenic control for gate-model qubits, which is claimed to be an industry first [1] - This advancement addresses a major challenge in building commercially viable and scalable gate-model quantum computers by reducing complexity and resource requirements [1][2] Company Developments - D-Wave has made several notable announcements in the past year, including achieving "quantum supremacy" by simulating the properties of magnetic materials with its Advantage2 annealing quantum computer [3] - The company secured a $12 million deal to expand its presence in Europe [3] Stock Performance - D-Wave's stock has seen a dramatic increase of over 200% in the past year, rising from under $1 two years ago to nearly $31 as of January 5 [4] Technological Investment - The company has invested heavily in quantum technology for a decade, leading to the recent advancements in gate-model programs, which are seen as a differentiating factor for D-Wave [5]

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Core Insights - TimesSquare Capital Management's "U.S. Small Cap Growth Strategy" reported a gross return of 2.26% and a net return of 2.01% for Q3 2025, significantly underperforming the Russell 2000 Growth Index, which returned 12.19% [1] - The fund's performance was impacted by a preference for application software companies, which faced headwinds due to market sentiment favoring cyclical semiconductors and quantum computing [3] Company Performance - Vertex, Inc. (NASDAQ:VERX) experienced a one-month return of -0.31% and a 52-week decline of 62.60%, closing at $19.56 per share with a market capitalization of $3.12 billion on January 5, 2026 [2] - For Q3 2025, Vertex reported revenue of $192.1 million, reflecting a year-over-year increase of 12.7% [4] - Vertex's earnings were slightly below expectations due to delays in enterprise contracts, pushing some revenues into later periods, although its two-year targets remain intact [3] Investment Sentiment - Vertex, Inc. is not among the 30 most popular stocks among hedge funds, with 22 hedge fund portfolios holding the stock at the end of Q3 2025, down from 25 in the previous quarter [4] - The company is viewed as having potential, but certain AI stocks are considered to offer greater upside potential with less downside risk [4]

Core Insights - Quantum Computing, Inc. (QUBT) has reported strong quarterly results in 2025, highlighting the increasing real-world adoption of its photonic and quantum computing systems [2] - The quantum computing industry has reached a critical inflection point in 2025, transitioning from theoretical potential to tangible commercial progress driven by advances in hardware, software, and error correction [3] - A robust ecosystem for commercial quantum computing has been fostered by increased investment, government support, workforce development, and technical breakthroughs, with meaningful applications expected in areas like drug discovery and cryptography over the next five to ten years [4] Company Performance - QUBT's stock has declined by 33.9% over the past year, underperforming the broader industry which gained 0.8% and the S&P 500 which rose by 16.9% [6] - The company has secured significant contracts, including a subcontract with NASA to address solar noise in space LIDAR data and a purchase order from a top-five U.S. bank for its quantum security solutions, marking its first commercial sale in this area [7][11] Growth Drivers - QUBT's DIRAC-3 quantum optimization machine is being deployed to develop methods for mitigating solar noise, reinforcing its position as a trusted government partner [8] - The company is pursuing mergers and acquisitions to accelerate quantum commercialization, including a $110 million acquisition of Luminar Semiconductor, which will enhance its photonic technology portfolio [12] Financial Position - QUBT's balance sheet has strengthened significantly, with total assets reaching $898.2 million and cash and investments totaling $813 million, supported by $1.25 billion in private placements [15] - For the full year 2026, QCi is expected to generate revenue growth of 284.3%, although earnings per share are projected to remain negative [16] Strategic Focus - QUBT is prioritizing long-term platform leadership over immediate revenues, investing in manufacturing infrastructure to support future scale [18] - The company plans to focus on small, customized deployments for a limited set of customers, which may limit near-term revenue growth due to low unit volumes and lengthy sales cycles [19] Valuation Concerns - QUBT's stock is currently trading at a high forward price-to-sales ratio of 840.29X, significantly above the industry average of 5.55X, indicating an expensive valuation [20]

Core Insights - ZenaTech, Inc. is strategically positioned to benefit from U.S. government restrictions on foreign-made drone equipment, enhancing demand for its U.S.-based drone subsidiary, ZenaDrone [1][3] - The company is focused on developing NDAA-compliant drone solutions to meet the evolving needs of defense and government customers, including pursuing Blue UAS certification [2][4] Regulatory Environment - The FCC has updated its Covered List to restrict new foreign-made UAS equipment, including DJI, based on national security concerns, which may increase demand for ZenaDrone's American-made products [3][5] - The regulatory shift emphasizes the need for trusted and compliant drone technologies, positioning ZenaDrone favorably for adoption in defense and government applications [3][5] Product Development and Capabilities - ZenaDrone is advancing its multi-function AI drone systems for government and defense, currently in various pilot and certification stages [4] - The ZenaDrone 1000 is a medium-sized VTOL drone capable of lifting approximately 40 kg, designed for ISR applications and critical cargo delivery [5] - The IQ Nano is a compact indoor drone for inventory management in GPS-denied environments, while the IQ Square is engineered for land surveys and infrastructure inspections [5][7] Market Demand and Growth - There is a rising demand for NDAA-compliant U.S. drone platforms as federal users prepare for limited availability of newly authorized foreign-made models [5] - ZenaDrone's manufacturing facilities in Arizona and Taiwan are being expanded to meet this growing demand [5] - The company aims to develop counter-UAS technology to enhance its product offerings and address future market needs [5]

Core Viewpoint - Quantum computing is an emerging technology with significant potential, but current companies in the sector are facing high valuations and substantial cash burn, making them speculative investments [1][7][17]. Company Summaries - IonQ has a market cap of approximately $16 billion, with projected revenues of $106 million to $110 million in 2025, resulting in a price-to-sales ratio of 145. The company expects a loss of $206 million to $216 million for the year [1][3]. - Rigetti Computing and D-Wave Quantum are valued at less than $10 billion each, generating only a few million dollars in revenue per quarter, indicating speculative valuations [1][3]. - IonQ reported a net loss of $1.05 billion in Q3 with revenues just under $40 million, highlighting the cash burn issue faced by these companies [8]. Industry Insights - The quantum computing sector is compared to the AI industry, which has seen companies with market caps exceeding $1 trillion. If quantum computing stocks achieve similar success, they could potentially generate significant returns for investors [2][6]. - Current conditions in the quantum computing sector are reminiscent of the space exploration industry in 2021, where initial optimism led to significant crashes [14][15]. - The commercialization of quantum computing technology is expected to take several years, with optimistic forecasts suggesting viability by 2030 [10][11]. Investment Considerations - Investors are advised to monitor quantum computing stocks carefully, as the current high valuations may not reflect future performance. Many years of optimistic results are already factored into share prices [12][13]. - Investing in a quantum computing ETF could provide exposure to the sector while mitigating risks associated with individual stocks [9]. - The potential for major returns exists, but the speculative nature of these stocks means that investors should be cautious and consider other opportunities in the meantime [17][18].

Core Viewpoint - Warren Buffett has stepped down from making final investment decisions for Berkshire Hathaway, with Greg Abel now in charge, although Abel is expected to maintain a similar investment strategy to Buffett's [1][2]. Group 1: Potential Investments - Greg Abel is predicted to increase Berkshire Hathaway's stake in Alphabet, as Buffett had previously regretted not investing sooner, and Abel may appreciate the company's strong cash flow and business moats [4][5][6]. - Dominion Energy is seen as a strong candidate for investment due to its regulated monopoly status and attractive dividend yield of over 4.5%, aligning with Buffett's preference for dividend-paying companies [8][11][12]. - Mitsui is likely to see an increase in Berkshire's ownership, as it currently holds a smaller stake compared to other Japanese companies, and both Buffett and Abel have expressed positive sentiments about their investments in Japan [13][15][16].