Core Insights - Artificial intelligence (AI) stocks have significantly influenced the stock market, but quantum computing is emerging as another transformative technology attracting investor interest [1][2] - IonQ, a key player in quantum computing, has seen its stock price increase by over 1,200% in the past three years, raising questions about the timing for new investments [2] Industry Overview - Quantum computing is positioned to solve complex problems that classical computers cannot, utilizing qubits instead of traditional bits for data processing [3] - Major tech companies like Alphabet and Microsoft are investing in quantum technology, alongside emerging pure-play quantum computing firms like IonQ [4] Company Profile: IonQ - IonQ aspires to be the "Nvidia of quantum computing," aiming to provide a comprehensive range of products and services similar to Nvidia's offerings in the AI sector [5] - The company currently sells quantum hardware, networking products, and related services, making its quantum computers available through major cloud platforms such as Microsoft Azure, Amazon Web Services, and Google Cloud [6] - IonQ is generating revenue from its quantum systems, although it is experiencing a deepening net loss [7]

Core Insights - Quantum stocks experienced a pullback after a strong rally earlier in the week, driven by significant investments and advancements in the quantum computing sector [1] Group 1: JPMorgan's Investment Initiative - JPMorgan Chase & Co. announced a direct equity investment of up to $10 billion as part of a $1.5 trillion initiative focused on national security needs, particularly in quantum computing [1] Group 2: Rigetti Computing (RGTI) - Rigetti Computing's stock surged 113% over the past month, supported by strong fundamentals and strategic wins, including a price target increase to $50 from Benchmark [2] - The company has secured $21 million in contracts for 2025 and holds $571 million in cash reserves, enhancing its financial stability [2] - Key partnerships, such as one with Nvidia, and a focus on a 1,000+ qubit roadmap have bolstered investor confidence [3] - Recent contracts with the U.S. Air Force and the UK's National Quantum Computing Centre validate its technology roadmap [3] Group 3: IonQ - IonQ shares rose after achieving a significant milestone in quantum chemistry simulations, demonstrating precise atomic-level force calculations using its QC-AFQMC algorithm [4] - Despite the initial rally, IonQ's stock pulled back, declining 11% over the past five days [5] Group 4: D-Wave Quantum (QBTS) - D-Wave Quantum's stock rallied 25% on Monday, making it the largest mover among quantum stocks, although it later experienced a nearly 5% decline on Friday [5][6] - The stock remained up by more than 16% over the week despite the pullback [6] Group 5: Quantum Computing, Inc. (QUBT) - Quantum Computing, Inc. shares slid 2.47% over the past five days, indicating a downward trend in the latter half of the week [7]

Core Insights - D-Wave Quantum's balance sheet has significantly improved compared to the previous year, indicating low near-term liquidity and solvency risk, but the challenge remains in translating this capital strength into operational momentum and shareholder value in Q3 [1][2]. Financial Position - As of June 30, 2025, D-Wave held $819.3 million in cash and cash equivalents, with total assets of $843.6 million, providing ample liquidity that exceeds near-term obligations [2][3]. - Current liabilities were limited to $19.3 million, while total liabilities stood at $149.3 million, resulting in stockholders' equity of $694.3 million, highlighting low leverage and solid solvency fundamentals [2][3]. Capital Raising Initiatives - The strengthened cash position is primarily due to aggressive capital-raising efforts, generating approximately $675.0 million in financing cash flows during the first half of 2025 through various methods, including ATM equity offerings and warrant exercises [3][7]. Operational Performance - Despite the strong financial position, D-Wave's operational performance remains mixed, with net cash used in operating activities totaling $34.6 million in the first half of 2025 and continued GAAP losses driven by non-cash items [4][5]. Q3 Expectations - The market anticipates narrowing losses and steady revenue growth from D-Wave's quantum cloud and annealing offerings in Q3 2025, with expected earnings improvement of 36.4% and revenue growth of 66.8% [5][6][7]. Valuation Concerns - D-Wave's shares are currently considered overvalued, trading at a forward price/sales ratio of 387.37X, significantly higher than the sector median of 6.62X and its one-year median of 118.53X [12][14]. - The stock's valuation suggests that much of the optimism is already priced in, with profitability still distant and sensitivity to non-cash swings [14].

Core Insights - J.P. Morgan Chase announced a $1.5 trillion "Security and Resiliency Initiative" with $10 billion allocated for direct equity investments in four strategic sectors, including quantum computing [1][2] - The initiative reflects a growing recognition of quantum computing as essential for U.S. competitiveness and national security [2] Quantum Computing Sector - D-Wave Quantum (QBTS) has seen a remarkable stock increase of 3,558% over the past year, driven by successful public relations efforts and genuine technological breakthroughs [4] - D-Wave's financial position is strong, with $819.3 million in cash as of Q2, despite a free cash flow loss of $35.88 million for the quarter [5] - The issuance of approximately $681 million in common stock in Q2 has positively impacted D-Wave's cash flow, enhancing its ability to fund quantum computing research [6] Other Quantum Computing Companies - Rigetti Computing (RGTI) has also benefited from the quantum computing surge, with its stock more than doubling in the past month, despite a lower media profile compared to competitors [8]

It's time now to turn our attention to quantum computing. And for that, I want to welcome in our next guest, Olivia Russie Newton, the CEO of BTQ Technologies. Olivia, thank you for taking the time to be with us today.You know, first, could you just start by telling us a little bit about BTQ and what your company does. >> Yeah, sure. So, um, I've I've been working with my younger brother on BTQ Technologies now for about 13 years.Um and we started off in the field of postquantum cryptography um where most o ...

Core Insights - Major quantum computing firms experienced significant declines in stock prices, with some dropping by double digits [2][4] - The decline affected the "Quantum Four" companies: Rigetti Computing, IonQ, Quantum Computing Inc, and D-Wave Quantum [2][3] Company Performance - Rigetti Computing saw the largest drop, with a 15% decrease on October 16, followed by an additional 7.65% decline in premarket trading [3] - IonQ's shares fell similarly, with a 2.23% drop on Friday after a significant decline on Thursday [3] - Quantum Computing Inc experienced an 11.73% drop, while D-Wave's shares were down 9.65% [4] Market Context - The broader stock market faced shocks due to Zions Bancorporation's fraud accusations against borrowers, raising concerns about the credit health of regional banks [7] - Stock futures retreated as investors reacted to the news, with a shift towards safe-haven assets like gold, which reached a record price of over $4,300 per ounce [8] Investor Behavior - Investors in quantum computing may be engaging in profit-taking after substantial gains over the past year, with Rigetti's shares soaring nearly 5,000% [9] - The speculative nature of the quantum computing sector has led to concerns about overvaluation of stocks [10]

that one. Now, this other one, Bin made people a lot of money in this stock. Um, since you first started talking about it, the chart, you can refresh our memories on ION Q, which you sold.>> Yep. >> No longer in it. >> No, >> it's up 50% year to date.Um, the chart's interesting obviously to look at over the course of the last uh 10 months. >> Yeah. >> Right.Why'd you get out of it now. So I actually bought it last quarter after listening to their earnings call which I listened to a couple times. Uh you need ...

Core Insights - The stock IONQ has seen a significant increase, up 50% year to date, indicating strong market interest and momentum [1]. - The company is involved in quantum computing research, which is considered a long-term investment with potential but currently lacks profitability [2][3]. - The valuation metrics for quantum computing stocks, including IONQ, are challenging, suggesting that current prices may not reflect their future earnings potential [4]. Company Analysis - IONQ is recognized for acquiring research teams that are advancing in quantum computing technology, positioning itself as a leader in the field [3]. - The stock was initially purchased in the 30s and sold at 70, highlighting a successful trading strategy based on market timing and momentum [4]. - The technology associated with quantum computing is projected to take five to seven years before it becomes commercially viable, indicating a long investment horizon [4].

Quantum computing firm Rigetti Computing (RGTI) recently received a Street-high price target of $50 from analysts at Benchmark, indicating potential upside of 13% from current levels. The upgrade marks a giant leap from the earlier target of $20 per share. Analyst David Williams believes the quantum sector is accelerating, and that Rigetti’s long-term strategy is well-supported by its execution. Moreover, the contracts that the company has managed to gain also position Rigetti for growth. More News from ...

Core Insights - Despite progress in capital access, private equity and venture funding remain concentrated in California, New York, and Massachusetts, leaving the Midwest and South with minimal institutional attention [1][2] - Over 85% of venture funding in the US is directed to just three states, highlighting a significant regional disparity in capital allocation [2] - "Flyover states" like Illinois and Missouri are emerging as fertile grounds for capital-efficient innovation, with startups demonstrating lower burn rates and a focus on early profitability [3][4] Investment Opportunities - Chicago is becoming a hub for applied AI and quantum computing, with regional universities producing commercialization-ready intellectual property [5] - Healthcare innovators in these regions are addressing care delivery challenges, indicating operational businesses that require early strategic capital [5] - Many businesses in these areas are founder- or family-led, providing operational continuity and community ties, yet they often lack the necessary support for scaling [6] Economic Implications - Underinvestment in middle America leads to slower innovation, underutilized intellectual property, and lagging job growth, particularly in healthcare and advanced manufacturing [7] - The absence of capital infrastructure hampers companies from bringing solutions to market at the required scale, affecting national resilience [7]