How Trump did Make in India a favor and what lies ahead for quantum computing in the country, Menaka Doshi writes in India Edition (Free to read) https://t.co/fhWeY9wkBf ...

Core Viewpoint - Investors are increasingly attracted to quantum computing stocks, but diversified AI stocks are considered better long-term investments [1][3]. Group 1: Quantum Computing Stocks - Key players in quantum computing include IonQ, Rigetti Computing, and D-Wave Quantum, which have outperformed the S&P 500 and Nasdaq Composite over the past year [1][3]. - These companies are primarily in exploratory phases, investing billions in R&D to achieve commercial breakthroughs [3]. Group 2: Nvidia - Nvidia's growth is driven by its GPUs and data center services, and it is innovating in quantum AI products [4][8]. - The company is leveraging its CUDA software architecture for hybrid computing environments [6]. - Nvidia's NVQLink platform addresses the fragility of qubits in quantum systems, enhancing its competitive edge [7][8]. Group 3: Alphabet - Alphabet is recognized for its diverse business model, with Google Cloud Platform (GCP) gaining traction among major clients like OpenAI and Meta [9][12]. - GCP's custom chip designs (TPUs) allow Alphabet to compete in the semiconductor market [12]. - Alphabet's research lab, DeepMind, is developing quantum computing systems, contributing to its AI foundation [13][14]. Group 4: Amazon - Amazon's extensive ecosystem includes e-commerce, streaming, and cloud services, with a focus on AI infrastructure [15][19]. - The company is investing heavily in data centers and has developed its own quantum processor, Ocelot [16][18]. - AWS leads in cloud computing market share, positioning Amazon well for AI-driven integration [19]. Group 5: IBM - IBM has a long history of investing in quantum computing and is now collaborating with AMD to commercialize quantum-centric supercomputing chips [20][22]. - This partnership could position IBM as a first mover in the quantum computing hardware market, potentially revitalizing its growth [22][23].

Industry Discussion - The industry is discussing whether crypto can become quantum safe in time [1]

Financial Data and Key Metrics Changes - Remaining Performance Obligation (RPO) grew 24% year-over-year to $15.5 billion, indicating strong long-term revenue predictability [28] - Next-Generation Security (NGS) Annual Recurring Revenue (ARR) reached $5.85 billion, up 29% year-over-year, exceeding guidance [28] - Total revenue for Q1 was $2.47 billion, representing a 16% increase, surpassing the high end of guidance [29][35] - Diluted non-GAAP EPS was $0.93, exceeding guidance, with adjusted free cash flow of $1.7 billion, up 17% [33] Business Line Data and Key Metrics Changes - SASE ARR grew 34% year-over-year, surpassing $1.3 billion, making the company the fastest-growing SASE provider at scale [10] - Product revenue increased by 23% year-over-year, with nearly half of product revenues driven by software form factors [29] - Software firewalls saw significant growth, contributing to 44% of trailing 12-month product revenue, up from 38% [29] Market Data and Key Metrics Changes - The Americas region grew 14%, EMEA increased by 18%, and JPAC saw a 22% growth, indicating broad-based strength across all major markets [30] - The company reported strong traction in the U.S. Federal sector, including a $33 million SASE deal and a $100 million deal with a large telecom provider [9] Company Strategy and Development Direction - The company is focusing on platformization to address the fragmented security landscape, emphasizing the need for unified security solutions [8][10] - The acquisition of CyberArk and Kronosphere is expected to enhance capabilities in identity security and observability, respectively, aligning with the company's strategic goals [25][23] - The company aims to achieve $20 billion in NGS ARR by FY2030, raising expectations from a previous target of $15 billion [23] Management's Comments on Operating Environment and Future Outlook - Management highlighted the evolving threat landscape due to AI, emphasizing the need for real-time visibility and security [7][8] - The company is optimistic about the future, expecting continued growth driven by AI transformation and the need for robust security solutions [12][23] - Management reiterated confidence in achieving 40%+ free cash flow margins by FY2028, despite the impact of acquisitions [36] Other Important Information - The company launched Prisma AIRS 2.0, a comprehensive platform for AI security, addressing the growing risks associated with AI [12] - The integration of Protect AI is complete, enhancing the company's capabilities in securing AI workloads [12] - The company is actively pursuing a quantum-safe strategy, launching solutions to prepare customers for future quantum threats [15][14] Q&A Session Summary Question: What is Palo Alto Networks doing to ensure success in an AI and quantum future? - Management emphasized the importance of network inspection and the sustained demand for security solutions as AI and quantum technologies evolve [41][43] Question: What is the perspective on the convergence of security and observability? - Management acknowledged the challenges in integrating observability into security but expressed confidence in Kronosphere's capabilities to address these needs [50][52] Question: How does XIM capture customer spending compared to incumbents? - Management indicated that XIM not only captures incumbent spending but also consolidates multiple product categories, expanding the overall footprint [58][60] Question: What are the biggest moving pieces behind the raised NGS ARR target? - Management cited the strength of core business areas, including SASE and software firewalls, as key drivers for the increased target [62][64] Question: What is the expected impact of acquisitions on margins and free cash flow? - Management expects to maintain at least a 37% free cash flow margin during the interim period, with a return to 40%+ by 2028 [72][73] Question: Are customers focused on quantum readiness yet? - Management noted a significant increase in customer discussions around quantum readiness, driven by urgency and potential future threats [86][87]

Core Insights - Palo Alto Networks announced the appointment of Mark Goodburn to its board of directors and the retirement of Mary Pat McCarthy effective January 23, 2026 [1][2][3] Group 1: Board Changes - Mark Goodburn will join the Audit Committee as chair and the Security Committee, bringing decades of experience in global advisory and technology [2] - Mary Pat McCarthy has served on the board since 2016 and will retire for personal reasons, stepping down as chair of the Audit Committee but remaining a member until her retirement [3] Group 2: Company Overview - Palo Alto Networks is recognized as a global leader in AI and cybersecurity, providing comprehensive AI-powered security solutions to over 70,000 organizations worldwide [4] - The company focuses on platformization to streamline security at scale, ensuring that protection fuels innovation [4]

Is AI in a bubble? When will the bubble burst? Are there signs? Well, we don’t have a crystal ball, but there are signs. On the markets, several prominent investors have spoken. Peter Thiel, one of the best-known tech investors, has sold his entire position in Nvidia. SoftBank, a huge Japanese tech investor is unloading its shares, too. Meanwhile, Michael Burry, of Big Short fame, warns of an impending bubble burst. And the head of Swedish fintech Klarna, a man with major AI holdings, said that he’s thinki ...

Core Viewpoint - Rigetti Computing is considered a promising investment opportunity in the quantum computing sector, with analysts projecting significant potential for stock price appreciation despite current financial challenges [1][4]. Company Overview - Rigetti Computing is currently valued at $8.2 billion, but it operates in a start-up mode, generating only $7.5 million in sales over the past 12 months, indicating it is at an early stage of business development [2]. - The stock is priced just below $25 per share, with analysts forecasting a potential rise to at least $40 within a year, and some predicting it could reach $51, which would represent a doubling of the current price [4][8]. Financial Performance - Rigetti's current market capitalization of $8.2 billion corresponds to a staggering price-to-sales ratio of 1,093, given its limited revenue [5]. - Sales have decreased by 43% compared to the previous year, raising concerns about the company's growth trajectory [5]. - Analysts project that Rigetti could achieve $300 million in sales by 2030, but they do not expect the company to be profitable even five years from now [6]. Investment Considerations - Despite the potential for high returns, Rigetti's stock is deemed very expensive and unprofitable at present, leading to caution among investors [8]. - Other investment opportunities have been identified that may offer better returns than Rigetti Computing, as noted by analysts from The Motley Fool [7].

Core Insights - Rigetti Computing (RGTI) has faced significant pressure, with shares dropping 41% over the past month due to a combination of lower revenues and ongoing losses, indicating that commercial traction is still developing despite some technical advancements [1][2][5] - The competitive landscape in the quantum computing sector is intensifying, with other companies like IonQ, D-Wave Quantum, and Quantum Computing Inc. making strides, which raises concerns about Rigetti's near-term execution [3][4] Financial Performance - RGTI shares have declined 40.6% in the past month, the steepest drop among key quantum peers, while IonQ has decreased by 18.1% [4][5] - In 2025, Rigetti is projected to experience a 23.8% decline in revenues, with earnings per share expected to remain negative, declining 88.9% year over year [12][15] - For Q3 2025, Rigetti reported total revenues of $1.9 million, down 18.1% year over year, with an operating loss of $20.5 million [15] Strategic Initiatives - Rigetti continues to secure government and research contracts, which, while not providing immediate recurring revenue, enhance the company's credibility and position in the quantum market [9] - The company is expanding its global partnerships, including collaborations with India's C-DAC and various U.S. academic institutions, which are expected to support future commercial pathways [10] - Rigetti is making progress on its hardware roadmap, with plans to deploy a 150+ qubit system by the end of 2026 and a 1,000+ qubit system by the end of 2027, targeting high fidelity [11] Market Positioning - Rigetti's stock is currently viewed as overvalued, with a price-to-book (P/B) ratio of 22.41X, significantly higher than the industry average of 5.37X [17] - The company remains a speculative investment in the quantum computing space, with ongoing advancements in hardware and partnerships supporting its long-term vision, but near-term revenue softness and losses create uncertainty [20][21]

Cryptocurrency & Quantum Computing - Vitalik Buterin warned that quantum computing could break elliptic curve cryptography before the 2028 U S presidential election [1] - Ethereum ($ETH) is urged to transition to quantum-resistant cryptography within the next four years [1] Privacy & Security - Zcash is mentioned in the context of privacy and quantum resistance [1]

Core Insights - SEALSQ Corp emphasizes the urgent need for organizations and governments to transition to quantum-resilient security due to the imminent threat posed by quantum computing [1][4] - Vitalik Buterin warns that quantum computers capable of breaking current cryptography may arrive as early as 2030, highlighting the necessity for immediate preparation [2][3] - SEALSQ and its parent company WISeKey are taking proactive measures to secure a post-quantum future through the development of advanced hardware and cryptographic frameworks [5][6] Company Actions - SEALSQ has announced a comprehensive Post-Quantum Cryptocurrency Protection Roadmap aimed at safeguarding digital assets across the blockchain ecosystem [5] - The roadmap includes the integration of NIST-selected algorithms and the development of quantum-resistant secure element chips and TPMs for hardware wallets [6][7] - SEALCOIN, a sister company, is leveraging SEALSQ's technology to ensure quantum-safe protection for M2M payments and contribute to quantum-resilience efforts within the blockchain ecosystem [8][9] Industry Context - The transition to post-quantum cryptography is critical as traditional methods like RSA and Elliptic Curve Cryptography are increasingly vulnerable to quantum threats [10][11] - SEALSQ is positioned as a leader in developing post-quantum semiconductors that provide robust protection for various applications, including healthcare, automotive, and industrial systems [11]