We recently published 10 Stocks Hammered Harder than Wall Street. IonQ Inc. (NYSE:IONQ) is one of the worst performers on Tuesday. IonQ dropped its share prices by 5.53 percent on Tuesday to close at $77.55 apiece after successfully raising $2 billion from a share sale program that resulted in the dilution of existing stocks. In a statement late last week, IonQ Inc. (NYSE:IONQ) said the program covered 16.5 million shares at a price of $93 apiece, pre-funded warrants to purchase more than 5 million share ...

Core Insights - The deployment of a 4400 qubit advantage quantum computer in Italy is part of the Q and Q Alliance, aimed at supporting digital transformation initiatives in the region [1][2] - The 4400 qubit advantage quantum computer is claimed to be the largest and most powerful quantum computer globally, significantly outperforming classical supercomputers in material property computations [2][3] - D-Wave's quantum computers utilize an annealing approach, distinguishing them from other companies that are developing gate model quantum computers, which have fewer qubits [5][6] Company Developments - D-Wave has made sales to various institutions, including a quantum computer to the Public Supercomputing Center in Germany and a memorandum of understanding with Yonsei University in South Korea [8][9] - The company is generating real revenue, albeit small, and has seen a significant increase in market capitalization alongside other quantum computing firms [7] - D-Wave's quantum computers are being used in practical applications, such as optimizing police vehicle deployment for North Wales Police, demonstrating their commercial viability [10]

Core Insights - D-Wave Quantum has entered a €10 million ($11.63 million) agreement with Swiss Quantum Technology (SQT) to deploy its Advantage2 quantum computer in Italy, supporting the country's digital transformation efforts [2][4]. Company Developments - The collaboration is part of a broader initiative called the "Q-Alliance," which includes D-Wave and IonQ, another American quantum computing firm [3]. - D-Wave's CEO, Alan Baratz, emphasized the significance of this deployment for Italy and the Q-Alliance, marking it as a pivotal moment for the region [7]. Market Performance - Following the announcement, D-Wave's stock rose approximately 1.29%, continuing a remarkable growth trajectory of over 4,235% in the past year, driven by increasing interest in quantum computing technology [4]. Technological Achievements - D-Wave recently claimed to have achieved "quantum supremacy," solving computations that would take classical computers about 1 million years to complete, showcasing the capabilities of its Advantage2 quantum computer [7][8]. - The Advantage2 is noted as the only quantum computer capable of solving significant real-world problems that classical computers cannot, specifically in simulating magnetic material properties [8]. Global Applications - D-Wave's technology is already in use globally, including applications in a Welsh police department for deployment analysis, in Ford Otosan's assembly processes in Turkey, and by a Japanese cellphone carrier to enhance network performance [9].

Industry Overview - The quantum computing space is projected to experience a compound annual growth rate (CAGR) of 41.8% from 2026 to 2031, driven by increasing investments from both government and private sectors [1][5] - Public investment in quantum technology has surpassed $10 billion, indicating a significant shift from research to real-world deployment [3][5] Government Initiatives - In 2024, global governments invested approximately $680 million in start-ups and announced $1.8 billion in broader quantum initiatives, with new commitments pushing total public funding beyond $10 billion by early 2025 [3][5] - The Trump administration is reportedly crafting executive orders to accelerate federal adoption of quantum technology, which may include procurement incentives and tighter timelines [5][6] - A reauthorized National Quantum Initiative (NQI) with a proposed budget of $2.7 billion through FY2029 aims to enhance R&D, grants, and industry partnerships [6] Company Highlights - **Amazon (AMZN)**: Amazon Web Services (AWS) has developed the Ocelot chip, which utilizes "cat qubits" to improve error correction and reduce costs by up to 90%. AWS is also supporting U.S. federal agencies through its Quantum Embark program [11][12] - **Microsoft (MSFT)**: Microsoft introduced the Majorana 1 quantum processor in February 2025 and announced a Quantum Research Center in Maryland to foster collaboration in quantum development [13][14] - **IonQ (IONQ)**: IonQ has made significant advancements through collaborations with the U.S. Department of Energy and participation in DARPA's Quantum Benchmarking Initiative, focusing on secure quantum networking and validation of quantum computers [15][16] Financial Projections - Amazon is projected to report earnings growth of 23.2% on 11.1% revenue growth in 2025 [12] - Microsoft is expected to achieve earnings growth of 12.9% on 14% revenue growth in 2025 [14] - IonQ is anticipated to report earnings growth of 37.8% on 115.1% revenue growth in 2025 [16]

Core Insights - Rigetti Computing (RGTI) is emerging as a significant player in the quantum computing sector, marked by recent achievements and contracts that indicate a shift towards commercial applications [1][2][9] Group 1: Recent Developments - In September 2025, Rigetti secured $5.7 million in purchase orders for its 9-qubit Novera systems and a new contract with the U.S. Air Force Research Laboratory to enhance hybrid quantum-classical solutions [7][9] - Rigetti has entered a Memorandum of Understanding with India's Centre for Development of Advanced Computing (C-DAC) to co-develop hybrid quantum systems, expanding its global footprint [2][10] - The introduction of the Cepheus-1-36Q system has halved error rates, showcasing Rigetti's progress towards a 100-qubit design [12] Group 2: Market Performance - RGTI stock has surged 267.8% year-to-date in 2025, reflecting strong commercial momentum and investor confidence [4][5] - In comparison, other quantum stocks like D-Wave Quantum (QBTS) and IonQ (IONQ) have also seen significant gains, with QBTS up 412.7% [4][3] Group 3: Financial Outlook - Despite a projected 19.7% decline in revenues for 2025, earnings per share are expected to improve by 86.1% year-over-year, indicating potential for future profitability [13] - Rigetti's current price-to-book (P/B) ratio stands at 32.88X, significantly higher than the industry average of 6.6X, suggesting that the stock may be overvalued [17] Group 4: Strategic Challenges - Rigetti faces the challenge of converting its partnerships and government contracts into steady, large-scale commercial revenue, as most current wins are tied to research and defense programs [14][20] - The company's future growth hinges on scaling sales to enterprise clients and transitioning from pilot programs to repeatable revenue-generating deployments [14]

Core Insights - D-Wave Quantum has secured a 10-million euro contract with Swiss Quantum Technology, boosting its stock performance in 2025 [1][2] - The company reported a second-quarter loss of 8 cents on an adjusted basis, which is an improvement from a 10-cent loss a year earlier, while revenue increased by 42% to $3.1 million [4] Company Performance - D-Wave's stock rose more than 4% to 44.94 in morning trading, marking a significant increase of approximately 412% in 2025, the highest among quantum computing stocks [3][4] - The company has around $800 million in cash on its balance sheet, indicating strong financial health [3] Industry Context - Quantum computing aims to tackle complex problems beyond the capabilities of classical computers, with D-Wave being a key player in the development of quantum annealing technology [2] - Other quantum computing companies like IonQ and Rigetti Computing have also seen significant stock increases of 85% and 267% respectively in 2025 [4]

Group 1: Industry Overview - The quantum computing industry is gaining significant attention from investors, with a notable growth potential despite being in its early stages [1][3] - McKinsey estimates that quantum computing revenue could increase from $4 billion in 2024 to as high as $72 billion by 2035, indicating substantial market growth [4] Group 2: Company Performance - IonQ has reported $52 million in revenue over the trailing 12 months, outperforming its three main competitors combined [4] - The company is currently the most successful pure-play quantum computing firm by revenue and market cap, with expectations to reach profitability and approach $1 billion in sales by 2030 [5] Group 3: Investment Considerations - IonQ's share price has increased by 50% over the last month, raising questions about the timing of potential investments [1][8] - Despite the recent price surge, there are analysts who have identified other stocks as better investment opportunities than IonQ [6][8]

Core Points - IonQ will release its financial results for Q3 2025 on November 5, 2025, after market close [1] - A conference call to discuss the results and business outlook will be held on the same day at 4:30 PM Eastern time [2] - The company aims to deliver quantum computers with 2 million qubits by 2030 to enhance innovation across various sectors [5] Company Overview - IonQ is a leading quantum company providing solutions for complex problems, with notable clients including Amazon Web Services, AstraZeneca, and NVIDIA [4] - The company has been recognized in several prestigious lists, including Fortune Future 50 and Forbes' 2025 Most Successful Mid-Cap Companies [6] - IonQ's technology is accessible through major cloud providers, making quantum computing more impactful [6]

Core Viewpoint - Churchill Capital Corp X (NASDAQ: CCCX) is merging with Infleqtion, a quantum company that specializes in quantum computing and is already selling quantum sensing products, indicating a strategic move into the quantum technology sector [1] Company Summary - Churchill Capital Corp X is pursuing a merger with Infleqtion, which focuses on both quantum computing and quantum sensing, suggesting a diversification of its portfolio into advanced technology [1] Industry Summary - The merger highlights the growing importance of quantum technology in various sectors, as companies seek to leverage advancements in quantum computing and sensing for competitive advantage [1]

Core Insights - The article discusses the significant risks facing Wall Street's leading quantum computing stocks, which have experienced a parabolic rally, highlighting the potential for a bubble and the challenges these companies may face in sustaining growth and profitability [1][4]. Industry Overview - Quantum computing is positioned as a transformative technology that leverages quantum mechanics to solve complex problems beyond the capabilities of traditional computers, with applications in drug discovery, AI enhancement, and cybersecurity [3]. - The economic potential of quantum computing is estimated to reach or approach $1 trillion in global economic value by 2035 to 2040, suggesting a substantial market opportunity for multiple companies [4]. Company Performance - The leading quantum computing companies, including IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing, Inc., have seen significant stock price increases over the past year, with gains ranging from 620% to 5,710% [9]. - Despite the impressive stock performance, these companies are currently facing substantial operational losses, indicating a need for capital-raising efforts that may dilute existing shareholders [8][10]. Valuation Concerns - The current price-to-sales (P/S) ratios for these quantum computing stocks are historically high, with estimates suggesting P/S ratios between 30 and 90 for 2029, which are not sustainable based on historical trends [12]. - The article draws parallels to past technology bubbles, suggesting that the current hype surrounding quantum computing may lead to similar outcomes as seen with previous innovations [6][7]. Competitive Landscape - The "Magnificent Seven" companies, which dominate the AI and cloud computing sectors, pose a significant threat to the pure-play quantum computing stocks due to their substantial financial resources and operational cash flow [14][16]. - Companies like Amazon are already integrating quantum computing services, which may limit the market opportunities for smaller quantum computing firms that lack the same level of capital and infrastructure [15].