ANALYSIS: IBD's 2026 Stock Market Forecast Today's Spotlight IBD's 12 Days of Holiday Deals Celebrate the holidays with big discounts on IBD's premium products every day from Dec. 13-24. Get Market Insights on IBD Live Join IBD Live to watch and discuss the market action in real time with a team of top market analysts. Is the Santa Claus Rally Real? Something big may be coming to town—check out IBD's guide to the Santa Claus Rally. More News (© Chris Gash) Next Data Center Roadblock For Google, Microsoft, O ...

Core Insights - Quantum computing is expected to significantly transform the technological landscape in the coming years, presenting substantial investment opportunities [2] Company Summaries Alphabet - Alphabet, the parent company of Google, has been advancing quantum computing through Google Quantum AI since 2012, focusing on superconducting quantum computing [4] - Google Quantum AI has achieved two milestones: quantum supremacy in 2019 and the unveiling of the first logical qubit prototype in 2023 [6] - Current market cap is $3.7 trillion, with a gross margin of 59.18% and a current stock price of $309.80 [5][6] Amazon - Amazon is a major player in quantum computing, offering Amazon Braket, a quantum cloud computing service that aids in developing quantum algorithms and software [8] - The company is developing its own quantum technology, including a new chip called Ocelet, which can reduce quantum error correction costs by up to 90% [11] - Amazon's market cap is $2.4 trillion, with a gross margin of 50.05% and a current stock price of $228.43 [9][10] Microsoft - Microsoft is investing heavily in quantum computing through its Azure cloud platform, which includes a "Quantum Ready" program to help organizations adapt to quantum technologies [12][13] - The company has developed the Majorana 1 chip, utilizing topological superconductors, which is a significant step towards integrating a million qubits on a single chip [15][16] - Microsoft's market cap is $3.6 trillion, with a gross margin of 68.76% and a current stock price of $484.92 [14][15] Common Characteristics - All three companies—Alphabet, Amazon, and Microsoft—are part of the "Magnificent Seven" stocks, operate widely used cloud platforms, and are leaders in artificial intelligence [17] - None of these companies are pure-play quantum computing firms, which mitigates investment risk associated with uncertain quantum technologies [18] - These companies possess the financial flexibility to acquire promising smaller rivals in the quantum computing space [19]

Core Viewpoint - Citron Research emphasizes that Infleqtion has transitioned from a conceptual science project to a commercially viable entity, highlighting its partnership with Safran SA for GPS-independent timing solutions [2]. Company Analysis - Infleqtion is identified as a neutral atom quantum technology company that has gone public through a SPAC merger earlier this year, marking its shift to a commercially viable phase [2]. - Rigetti Computing Inc. is contrasted with Infleqtion, as it struggles to meet benchmarks set by DARPA, indicating a lag in its development compared to Infleqtion [3]. - The market capitalization of Rigetti is noted at $7.84 billion, while Infleqtion's market cap is just over $720 million, with expectations that their valuations will converge by early 2026 [4]. Investment Strategy - Citron has adopted a long position on Infleqtion while shorting Rigetti, aiming to capitalize on the divergence in their valuations, as the market has not yet recognized the execution gap between the two companies [5]. - Since the initiation of this trade, Rigetti has seen a decline of 35.50%, while Infleqtion has only decreased by 1.68%, amidst broader skepticism in the quantum computing sector [6]. Market Performance - On a recent trading day, Infleqtion's shares rose by 13.50% to close at $15.72, while Rigetti's shares increased by 13.24% to $26.90, reflecting a positive trend in quantum stocks [7]. - The year 2025 has been successful for quantum stocks, with analysts and investors anticipating continued momentum into the new year [8]. - Year-to-date performance for quantum stocks shows Infleqtion up 53.82%, while Rigetti is up 34.53%, indicating strong performance relative to the sector [9].

Market Overview - Major U.S. indexes closed higher, with the Dow Jones Industrial Average rising 0.47% to 48,362.68, the S&P 500 advancing 0.6% to 6,878.49, and the Nasdaq adding 0.5% to finish at 23,428.82 [1] Novo Nordisk - Novo Nordisk's stock saw a slight increase of 0.01%, closing at $48.10, with an intraday high of $48.22 and a low of $47.59; the stock surged nearly 9.5% in after-hours trading to $52.66 [2] - The FDA approved Novo Nordisk's Wegovy pill, the first oral GLP-1 therapy authorized in the U.S. for long-term weight management and cardiovascular risk reduction, based on the OASIS trial where patients lost an average of 16.6% of their body weight [3] Starfighters Space Inc. - Starfighters Space shares skyrocketed by 372.97%, closing at $31.50, with an intraday high of $31.50 and a low of $6.40; however, the stock plummeted 23.75% to $24.02 in after-hours trading [4] - The surge followed the company's IPO priced at $3.59, raising $40 million for hypersonic research and satellite launch operations, amid strong momentum in the space sector driven by defense contracts and investor interest [5] D-Wave Quantum Inc. - D-Wave Quantum's stock climbed 20.07%, closing at $32.19, with a high of $32.39 and a low of $27.62 [6] - The stock's increase was part of a late-December "Santa Rally," driven by retail investors focusing on high-beta quantum computing names, with D-Wave's shares jumping nearly 20% after announcing its Advantage2 system will feature at CES 2026 [7] Sidus Space Inc. - Sidus Space shares jumped 96.98%, closing at $2.28, with an intraday high of $2.59 and a low of $1.80; the stock dropped 39.2% in after-hours trading [8] - The surge was attributed to the company being selected as a contract awardee under the U.S. Missile Defense Agency's SHIELD IDIQ program, supporting the Golden Dome missile defense strategy [9] ZIM Integrated Shipping Services Ltd. - ZIM Integrated Shipping saw a 3.27% rise, closing at $19.88, with an intraday high of $20.14 and a low of $19.30; in extended trading, the stock rose 11.7% to $22.20 [11] - The increase followed the company receiving multiple competitive proposals for acquiring all outstanding shares, with the board evaluating these offers as part of a strategic review [12]

Core Insights - The quantum computing industry has experienced significant growth in 2025, with D-Wave Quantum Inc. being a standout performer among analysts and investors [3] - Analysts from four Wall Street firms have recently initiated Buy or Outperform ratings for D-Wave's stock, indicating strong market interest [3] Company Performance - D-Wave's revenue for Q3 2025 more than doubled year-over-year, reaching approximately $3.7 million, although this figure remains modest compared to its stock valuation [4] - Analysts predict a 73% compound annual revenue growth rate (CAGR) for D-Wave over the next several years, suggesting a positive outlook for future revenue expansion [5] Market Position - D-Wave has primarily served government and large organization clients, with recent sales including a quantum system to the Italian government, but there is growing interest from smaller clients [5] - The company's cloud quantum service is positioned to attract businesses seeking to leverage quantum technology without the need for significant capital investment in hardware [6] Industry Outlook - Despite recent volatility, the quantum industry is expected to grow significantly in the coming year, with D-Wave being a leading player due to its commercial traction and technological diversity [7] - The sentiment towards D-Wave's stock is improving, with decreasing short interest and increasing support from major Wall Street players [7]

Core Insights - Investors are evaluating the potential of quantum computing stocks, particularly D-Wave Quantum, in light of upcoming CES 2026 plans and increasing momentum in the quantum sector [1][3] Company Overview - D-Wave Quantum, a developer of quantum computing systems and services, saw its stock price rise by 20.02% to $32.19, with a market capitalization of $9.4 billion [2] - The company has experienced a significant growth of 216% since its IPO in 2020, with trading volume reaching 63 million shares, which is 28% above its three-month average [2] Market Performance - The S&P 500 and Nasdaq Composite indices increased by 0.64% and 0.52%, respectively, while other quantum computing companies like IonQ and Rigetti Computing also saw notable gains of 11.10% and 13.13% [4] - The overall market sentiment in the quantum sector is optimistic, driven by expectations of commercialization and new system launches [4] Investor Sentiment - Investors are particularly focused on D-Wave's Advantage2 quantum annealing system, which is available through cloud services or on-site installation, anticipating promising use-case scenarios to be presented at CES 2026 [5] - Analysts from Jefferies and Wedbush have initiated coverage on D-Wave, recommending it as a buy, which has contributed to positive investor sentiment ahead of the CES event [6]

Industry Overview - The global quantum computing market is in its early stages but is experiencing rapid growth, with revenues projected to reach approximately $1.08 billion in 2026, up from around $0.8 billion in 2025, and long-term forecasts suggest it could reach $16.3 billion by 2030 [1] - Sentiment among technology leaders regarding quantum computing is shifting, with NVIDIA CEO Jensen Huang noting that the sector is approaching an "inflection point," indicating meaningful advancements, albeit on a different adoption curve compared to generative AI [2] Government and Corporate Investment - Significant public and private capital is being directed towards quantum computing, with billions committed by governments in the US, EU, China, and India for research, infrastructure, and workforce development, indicating a strategic long-term focus [4] - The US Department of Energy proposed $2.5 billion in funding for quantum initiatives from 2026 to 2030, while China has allocated around $15 billion for quantum projects [4] - Major corporations like IBM, Google, Microsoft, NVIDIA, and JPMorgan are actively investing in quantum research, with hyperscale cloud providers positioned to monetize quantum services ahead of full fault-tolerant machines [5] Company Performance - IonQ reported a remarkable 222% year-over-year revenue growth and achieved a world-record two-qubit gate performance, indicating strong technological advancement [9] - D-Wave Quantum experienced a 235% year-to-date revenue increase, with significant bookings for its Advantage2 annealing system, reflecting growing commercial demand [9] Future Projections - IonQ is expected to see earnings growth of 65.8% and sales growth of 83.3% in 2026, with a current stock price target suggesting a potential increase of 55.7% [12] - D-Wave is projected to achieve earnings growth of 7% and sales growth of 61.1% in 2026, with a stock price target indicating a possible 44.3% increase [16] Investment Considerations - Investors are advised to differentiate between the long-term potential of quantum technology and the current market hype, favoring diversified exposure through larger technology firms alongside pure-play quantum stocks [10] - Pure-play quantum companies like IonQ and D-Wave may present asymmetric upside but come with higher volatility and execution risks, necessitating a long-term investment mindset [10]

BREAKING: Tech Stocks Extend Bullish Market Shift Today's Spotlight Partner Center IBD's 12 Days of Holiday Deals Celebrate the holidays with big discounts on IBD's premium products every day from Dec. 13-24. Get Market Insights on IBD Live Join IBD Live to watch and discuss the market action in real time with a team of top market analysts. Is the Santa Claus Rally Real? Something big may be coming to town—check out IBD's guide to the Santa Claus Rally. More News (© Chris Gash) Next Data Center Roadblock Fo ...

Group 1: Market Insights - IBD Live offers real-time market action discussions with top analysts, providing valuable insights for investors [2] - The Santa Claus Rally is highlighted as a potential market phenomenon, suggesting significant market movements may occur during the holiday season [3] Group 2: Company Developments - Heico (HEI) and Howmet (HWM) are both aerospace stocks that have shown substantial gains this year, moving towards buy points following positive news including an M&A announcement [5] - Howmet's stock rose nearly 2% after announcing its acquisition of Stanley, indicating strong market interest and potential growth opportunities [5] Group 3: Stock Ratings and Performance - Heico's IBD SmartSelect Composite Rating improved from 90 to 97, reflecting enhanced performance metrics and investor confidence [6] - Heico's Relative Strength (RS) Rating also saw an increase to 78, further indicating its strong market position [10] Group 4: Sector Trends - Gold and silver miner Pan American is leading a group of 11 newcomers to stock watchlists, showcasing the growing interest in mining stocks [8] - Defense stocks are also gaining attention, with Embraer breaking out and entering a buy zone, indicating a positive trend in the defense sector [8]

Alphabet Inc (NASDAQ: GOOGL) is in focus today after announcing plans to acquire Intersect, a leading clean energy and data centre infrastructure firm based in San Francisco, CA. Integrating Intersect's clean power generation capabilities with its cloud infrastructure will enable Google to scale more efficiently while reducing exposure to volatile energy markets. The acquisition also strengthens its ESG profile – appealing to institutional investors increasingly focused on sustainability. Beyond optics, the ...