Core Viewpoint - IonQ, Inc. (IONQ) is considered a long-term investment opportunity despite concerns regarding its valuation and share price volatility, emphasizing that significant returns often require taking substantial risks [1]. Company Analysis - IonQ is positioned in the quantum computing sector, which is expected to grow significantly, making it a potentially valuable asset for long-term investors [1]. - The company currently has a negative earnings per share (EPS), which may deter some investors but is common in high-growth sectors [1]. Market Trends - The volatility in IonQ's share price reflects broader market trends in technology and emerging industries, where investor sentiment can fluctuate based on news and performance metrics [1]. - The quantum computing industry is still in its early stages, suggesting that companies like IonQ may experience rapid growth as the technology matures and becomes more widely adopted [1].

Group 1 - Rigetti Computing is a leading pure-play company in quantum computing, presenting significant investment opportunities but also high risks due to the lack of a backup business model [1] - The company recently sold two Novera quantum computing systems for a total of $5.7 million, indicating a viable product and leadership in the market [4] - Rigetti's systems are compatible with Nvidia's NVQLink, which enhances its position in the quantum computing landscape [5][8] Group 2 - The launch of Nvidia's NVQLink suggests that quantum computing integration into existing infrastructure may happen sooner than expected, making Rigetti an attractive investment [6] - Investors are encouraged to adopt a long-term perspective regarding Rigetti's stock, as useful quantum computing is still a few years away [7]

Core Insights - IonQ's impressive sales growth of 222% year-over-year in Q3 highlights a significant flaw in the quantum computing investment thesis, suggesting that current valuations may not be sustainable [6][10][20] Company Performance - IonQ reported $39.9 million in revenue for the third quarter, exceeding its own guidance by 37% and Wall Street's expectations by nearly $13 million [6][10] - The company raised its full-year sales guidance to a range of $106 million to $110 million, which is approximately $17 million higher than the consensus estimate from analysts [6] - IonQ's operating loss increased to $168.8 million, more than tripling from the previous year, indicating challenges in profitability despite revenue growth [9][10] Market Context - Quantum computing stocks have seen significant price increases, with trailing-12-month gains for companies like IonQ ranging from 274% to 2,970% as of November 6 [2] - The price-to-sales (P/S) ratios for quantum computing companies are concerning, with IonQ's P/S ratio at 250, Rigetti Computing at 1,102, D-Wave Quantum at 326, and Quantum Computing Inc. at 6,190, suggesting that current valuations are unsustainable [15][17] Industry Outlook - Quantum computing is still in the early stages of commercialization, with many companies yet to optimize the technology or achieve a positive return on investment [20] - Historical trends indicate that early-stage technologies often experience a bubble-bursting event, raising concerns about the longevity of the current hype surrounding quantum computing stocks [19][20]

Core Viewpoint - Rigetti Computing is preparing to release its third-quarter 2025 results, with expectations of a loss per share of 5 cents and revenues of $2.39 million, indicating a year-over-year growth of 37.5% in earnings but only a modest revenue growth of 0.4% [2][3]. Financial Performance - The consensus estimate for 2025 revenues is $8.7 million, reflecting a decline of 19.7% year over year, while the loss per share is expected to be 9 cents, suggesting a year-over-year growth of 75% [4]. - Rigetti has had mixed performance in the past four quarters, surpassing the consensus estimate once, missing once, and meeting expectations twice, resulting in an average earnings surprise of negative 10.8% [4]. Earnings Analysis - Rigetti has an Earnings ESP of 0.00%, indicating no expected earnings surprise for the upcoming report [5]. - The company currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [6]. Market and Operational Factors - The third-quarter performance is likely to be influenced by uncertainties in U.S. public-sector funding, particularly due to the expiration of the National Quantum Initiative [7]. - Rigetti's rollout of the Cepheus-1-36Q quantum system is expected to provide early benefits, with strong technical gains and increased experimentation among customers [8]. Cash Position and Valuation - Rigetti has over $570 million in cash and no debt, positioning it well for continued system development and stable margin execution [9]. - Year-to-date, Rigetti's shares have gained 125.1%, outperforming the broader Internet Software industry, which advanced 10.2% [12]. Long-Term Strategy - Rigetti aims to deliver a 100+ qubit chiplet-based system with approximately 99.5% fidelity by the end of 2025, with a long-term goal of achieving a 1,000-qubit system [13]. - The company is focusing on building an ecosystem through partnerships, such as the collaboration with Quanta Computer Inc., which includes significant financial commitments from both parties [17][18]. Commercial Developments - Recent orders for the Novera QPU systems indicate growing demand for quantum systems beyond government labs, with potential for broader enterprise adoption in the future [15][16]. - The integration of Novera with NVIDIA's DGX Quantum platform highlights Rigetti's efforts in hybrid quantum-classical workflows [18]. Investment Outlook - The upcoming third-quarter results are expected to reflect steady progress rather than a major financial turning point, supporting a hold view for investors [19]. - While Rigetti's balance sheet allows for continued investment, visibility into larger commercial demand remains limited, suggesting a cautious approach for prospective investors [21].

Core Insights - The rise of artificial intelligence (AI) has significantly impacted the market, particularly benefiting technology stocks over the past three years [1] - Wall Street's interest in AI has extended to quantum computing, with companies like IonQ aiming to replicate the success of Nvidia in this space [2] Company Overview - IonQ currently holds $3.5 billion in cash, positioning it to pursue its growth ambitions in quantum computing [3] - The company is focused on developing a commercial quantum computing platform to leverage advanced computing capabilities [5] - IonQ's revenue guidance for full-year 2025 is $110 million, while it has incurred over $208 million in operating losses in the first nine months of the current year [6] Market Potential - The commercial viability of quantum computing remains uncertain, with experts divided on its market potential and timeline for practical applications [8][9] - McKinsey & Company projects quantum computing revenue could increase from $4 billion in 2022 to $72 billion by 2035, though some industry leaders suggest practical quantum computers are still 5 to 10 years away [9] Competitive Landscape - IonQ faces competition from major tech companies like Alphabet, Amazon, IBM, Microsoft, and Nvidia, all of which are investing in quantum technology [10] - The company currently sells access to its quantum computers through cloud providers, which may develop their own solutions, posing a risk to IonQ's business model [11] Financial Metrics - IonQ's market capitalization is approximately $21 billion, with a current stock price of $1.84, reflecting a high valuation relative to its revenue guidance [12][14] - The stock is trading at about 172 times the upper end of its 2025 revenue forecast, indicating a high-risk investment profile [14] Investment Considerations - Despite its substantial cash reserves, IonQ's future success is not guaranteed, and the stock is viewed as a risky investment due to its high valuation and operational losses [15]

Core Insights - The capital market is shifting its focus from artificial intelligence to quantum computing, which is seen as a field with greater potential for innovation [1] - Quantum computing companies like Rigetti Computing Inc. and D-Wave Quantum Inc. have experienced stock price surges exceeding 1900% over the past year, outperforming many popular AI stocks [1] - Despite their impressive stock performance, these companies currently lack practical applications and are not expected to generate significant revenue in the coming years, leading to high cash burn rates [1] Market Sentiment - There is a polarized view in the market regarding quantum computing; bulls believe it can address major issues like disease treatment and climate change, while bears warn of a speculative bubble lacking fundamental support [1] - Concerns about high valuations are substantiated, with Rigetti's valuation exceeding 500 times its forward sales, compared to 72 times for AI company Palantir and less than 6 times for the Nasdaq 100 index [4] - Despite high valuations, Wall Street analysts remain optimistic, with all ten analysts covering D-Wave recommending a buy, although some analysts face backlash for their bullish outlook on Rigetti [4] Stock Performance - Rigetti's stock has seen a decline of approximately 28% over the past month, while D-Wave's stock has dropped around 16% in the same period [4] - As of November 7, Rigetti's market capitalization stands at $10.947 billion, with a closing price of $33.77, down 28.32% over the past month [5] - D-Wave's market capitalization is approximately $10.09 billion, with a closing price of $29.50, reflecting a decrease of 15.88% over the past month [7]

Core Insights - Nvidia is advancing quantum computing by integrating AI and GPUs, creating a hybrid system that enhances communication and accelerates research progress [4][5][6][21]. Group 1: Nvidia's Technological Advancements - Nvidia unveiled NVQLink and CUDA-Q, which act as a command post for quantum processors, improving communication speed significantly [4][5]. - The NVQLink connects quantum processors with existing computing systems at microsecond speeds, allowing real-time monitoring and error correction [5][6]. - Nvidia's GPUs are already optimized for the parallel calculations required in quantum research, making them essential for future quantum processors [7][8]. Group 2: Competitive Landscape - Other companies are focused on developing better quantum hardware, but they require reliable coordination with existing computing power, which Nvidia provides [9]. - Nvidia's open system encourages collaboration with new labs and startups, solidifying its position as a hub for quantum experimentation [9][12]. Group 3: Strategic Positioning - By controlling the infrastructure that links current technology with future quantum advancements, Nvidia ensures its relevance and revenue in the evolving computing landscape [13][25]. - The company is positioned to benefit from the potential applications of quantum computing in fields like climate forecasting and drug discovery [26]. Group 4: Beneficiaries of Nvidia's Strategy - Companies like TSMC, Micron, Broadcom, and ASML are positioned to benefit from Nvidia's hybrid systems, as they provide essential components and support for the infrastructure [15][16][18][20]. - TSMC's advanced manufacturing capabilities and Micron's high-speed memory are critical for maintaining the performance of hybrid quantum systems [15][16]. Group 5: Future Outlook - In the near term, Nvidia is expected to strengthen ties with national labs and deep-tech startups, while in the medium term, the CUDA platform will facilitate collaboration between AI and quantum technologies [26]. - Long-term prospects suggest that if quantum computing achieves its potential, Nvidia will be well-positioned to supply the necessary tools and infrastructure to support this new frontier [26].

Quantum sparks progressPrompting stronger cryptography for the blockchain ageRead more 👇https://t.co/RlDAobes5E ...

Group 1: Quantum Computing Overview - Quantum computing is expected to be the next generation of computing, utilizing superposition to process information as both 0 and 1 simultaneously, unlike classical computers which operate in a binary manner [1] - Quantum computers can solve complex problems that would take conventional computers millions of years, although they are not necessarily faster in every aspect [2] Group 2: Rigetti Computing Company Overview - Rigetti Computing is a leader in the quantum computing industry, specializing in superconducting quantum chips for applications in finance, logistics, and scheduling [3] - The company aims to build powerful computers to address significant global challenges [3] Group 3: Earnings Expectations - Rigetti is set to report Q3 2025 earnings on November 10th, with expected revenue of $2.39 million and an EPS of -$0.05 according to Zacks Consensus Analyst Estimates [4] - The company has a mixed EPS track record, having matched expectations twice, missed once, and beaten once since going public [4] Group 4: Market Performance - Rigetti's stock has seen a dramatic increase of approximately 2,261% over the past year, indicating strong investor interest in quantum computing technology despite unproven earnings [9] - The options market suggests a post-earnings move of around 14% [5] Group 5: Company Focus - Rigetti is primarily in the R&D stage, and its performance will be evaluated based on partnerships, technological advancements, and forward-looking statements rather than just earnings results [6][8]

Group 1: Hedge Fund Activity - Hedge funds will disclose positions ahead of the 13F deadline, providing insights into their strategies during recent market highs [2][3] - Michael Burry's Scion Capital has disclosed bets against Nvidia and Palantir, indicating a cautious stance on AI stocks [4] - The upcoming filings will reveal whether funds increased their positions during the third quarter or remained cautious due to high valuations, particularly in tech and AI sectors [5] Group 2: Earnings Reports - 90% of S&P 500 companies have reported Q3 earnings, with 82% exceeding profit estimates and 77% surpassing revenue expectations [9] - Walt Disney is expected to report EPS of $1.02 on revenue of $22.78 billion for fiscal Q4, with a focus on guidance and debt reduction [10] - Other companies reporting include CoreWeave, Occidental, Cisco, and Applied Materials, among others [10][12][13] Group 3: Market and Political Developments - The government shutdown is projected to last at least 50 days, impacting market sentiment and economic data availability [15] - President Trump has proposed reallocating federal healthcare funds away from insurance companies to direct payments to the public, suggesting a $2,000 dividend for most Americans [16][17]