Core Insights - Investors should consider pure-play quantum computing stocks like D-Wave Quantum for long-term growth potential despite short-term volatility in the capital-intensive industry [1] Q3 Snapshot - D-Wave's revenues in Q3 2025 increased by 100% year over year and 8% sequentially, surpassing the Zacks Consensus Estimate by 19.8% [2] - GAAP gross profit rose by 156% year over year, with gross margin expanding by 1,560 basis points to 71.4% [2] - Adjusted net loss improved to $18.1 million from $23.2 million a year ago, with cash and equivalents at $836.2 million as of September 30, 2025 [3] Commercial Traction - The company reported bookings of $2.4 million in Q3, an 80% sequential increase, and secured a €10 million ($11 million) contract in Italy [5] - D-Wave is engaging with large enterprises and government entities, including a major U.S. airline and a leading semiconductor foundry [5] Technological Advancement - D-Wave's dual-track strategy includes both annealing and gate-model superconducting quantum systems, with the Advantage2 system operational for defense use [8] - Recent advancements in fluxonium qubit chips and superconducting control chips indicate progress toward a scalable gate-model architecture [8] Solid Financial Position - D-Wave's cash reserves increased significantly to $836.2 million compared to $29.3 million a year ago, providing flexibility for R&D and market scaling [9] - Management anticipates a 15% increase in operating expenses in the second half of 2025 due to ongoing investments [4] YTD Stock Comparison - D-Wave's shares have surged by 245.1% year to date, outperforming the broader industry and major indices [14] Valuation Remains Stretched - The stock is currently trading at a forward price/sales ratio of 250.58x, significantly higher than its one-year median of 151.70x and the sector average of 6.91x [16] - Despite the high valuation, it remains discounted compared to Rigetti's P/S of 480.97x [16]

Core Insights - Quantum computing is gaining renewed attention as companies like Rigetti, IonQ, and D-Wave release their earnings reports, indicating a potential shift in market dynamics and investor interest in the sector [1] Company Summaries - Rigetti reported significant advancements in its quantum computing technology, showcasing improvements in qubit performance and scalability, which could enhance its competitive position in the market [1] - IonQ highlighted a strong increase in revenue, with a reported growth of 50% year-over-year, reflecting the rising demand for quantum solutions across various industries [1] - D-Wave announced strategic partnerships aimed at expanding its customer base and enhancing its service offerings, which may lead to increased market penetration and revenue growth [1]

Group 1: Company Performance - Advanced Micro Devices (AMD) shares surged 9% after the chipmaker issued upbeat targets at its first analyst day [1] - On Holding (ONON) shares jumped 20% following better-than-expected results and a raised full-year outlook for the third consecutive quarter [2] - International Business Machines (IBM) shares gained about 2% after announcing several quantum-computing breakthroughs [2] - Paramount Skydance (PSKY) was the worst-performing stock in the S&P 500 with a 6.5% decline after a previous surge of nearly 10% [3] - AppLovin (APP) shares registered a further decline of 1.5% after a nearly 9% drop the previous day [3] Group 2: Market Trends - Major U.S. equities indexes were mixed, with the Dow Jones Industrial Average reaching a record high while the Nasdaq and S&P 500 were lower [1] - Oil futures sank more than 3%, while gold futures advanced nearly 2% [4] - The yield on the 10-year Treasury note fell, and the U.S. dollar rose against the pound and yen but slipped against the euro [4]

Core Idea - The article discusses two distinct investment approaches centered around the growth of quantum computing, highlighting its unique characteristics compared to traditional computing [1]. Group 1: Investment Focus - The analysis emphasizes the potential of small- to mid-cap companies in the quantum computing sector, which are often overlooked by many investors [1]. - Occasionally, the analysis also includes large-cap companies to provide a comprehensive view of the broader equity markets [1].

Core Insights - The article discusses 15 emerging technology trends that will significantly shape the landscape by 2026, emphasizing the rapid integration of technology into daily life and work environments [1][2]. Group 1: Smart Infrastructure and IoT - By 2026, over 30 billion devices will be interconnected, enhancing urban environments with smart traffic lights and pollution monitoring systems [5]. Group 2: Privacy and AI - AI is shifting towards local processing to enhance privacy, with companies like Apple and Meta developing technologies that keep data processing on devices rather than in the cloud [6]. Group 3: Automation and Robotics - Workflow automation tools are increasingly replacing human roles in various sectors, with companies like Amazon utilizing predictive technologies for logistics [7]. - AI-enhanced robotics are already operational in retail and logistics, performing tasks such as inventory management and delivery [8]. Group 4: AI Integration - AI is becoming embedded in operating systems, allowing for proactive assistance in tasks like email management and content creation [9]. - Wearable technology is evolving to monitor health metrics more comprehensively, potentially predicting health issues before they arise [10]. Group 5: Quantum Computing - Quantum computing is advancing rapidly, with companies like IBM developing chips that can simulate complex molecules and optimize supply chains [11][12]. Group 6: Augmented Reality - Augmented reality glasses are set to replace traditional screens, providing immersive experiences and real-time information overlays [13]. Group 7: AI in Healthcare - AI is transforming healthcare by enabling early disease detection and personalized treatment plans, moving beyond traditional diagnostic methods [14]. Group 8: Edge AI - Edge AI technology is being integrated into everyday devices, enhancing their capabilities without relying on cloud processing [15]. Group 9: Home Assistants and Humanoid Robots - AI-powered home assistants are becoming more interactive and capable, while humanoid robots are being deployed in commercial settings for various tasks [16][17]. Group 10: AI Agents and Generative AI - AI agents are evolving to perform complex tasks autonomously, while generative AI is becoming the standard for content creation across various media [18][19]. Group 11: Brain-Computer Interfaces - Brain-computer interfaces are making significant strides, enabling direct communication between the brain and devices, with implications for medical applications [20].

Industry Overview - Quantum computing is projected to create $450 billion to $850 billion in economic value globally by 2040, indicating strong growth potential for the industry [1] - The industry is expected to provide sustained tailwinds for early movers to capitalize on emerging opportunities [1] Company Profile: D-Wave (QBTS) - D-Wave identifies itself as the world's first commercial supplier of quantum computers and is well positioned to benefit from industry growth [1] - The company has submitted 200 million problems to its quantum systems and has over 100 revenue-generating customers [3] - D-Wave's established products include the world's largest quantum computers, and it operates in a significant addressable market, allowing for healthy growth [3] Stock Performance - QBTS stock has rallied by 222% year-to-date but has corrected by 42% from recent highs of $46.75, presenting a potential accumulation opportunity [2] - The stock has surged by 152% in the last six months, supported by a robust growth trajectory and an expanding client base [4] Innovation and Intellectual Property - D-Wave has a strong focus on innovation, holding over 280 granted patents in the United States and more than 550 granted or pending patents globally [5] - The company employs a team of 50 PhD scholars, positioning it well for meaningful advancements in quantum computing [5] Financial Performance - For the first nine months of 2025, D-Wave reported $21.8 million in revenue while spending $37 million on R&D, indicating cash burn typical for early-stage companies [6] - As of Q3 2025, D-Wave reported a cash balance of $836.2 million, providing a robust cash buffer that mitigates the risk of equity dilution in the near future [6] Analyst Ratings - Benchmark has reaffirmed its "Buy" rating for QBTS stock with a price target of $35, supported by positive business developments that are expected to drive continued growth momentum [2]

Core Insights - IBM has announced its new advanced quantum processor, IBM Quantum Nighthawk, which has led to a rally in its shares [1] - The company is positioned to rapidly innovate and scale quantum technologies, according to Jay Gambetta, Director of IBM Research [2] Quantum Processor Developments - Alongside Quantum Nighthawk, IBM introduced the experimental Quantum Loon processor, aimed at validating a new architecture for high-efficiency quantum error correction [3] - The Loon processor demonstrates all hardware elements necessary for fault-tolerant quantum computing [3] Market Performance - Following the announcement, IBM's shares increased by more than 2.5%, indicating a potential breakout from the recent trading range [3] - The conservative bull flag measurement suggests a target price of around $345, with a more aggressive target of $365 based on recent trading activity [4]

Core Insights - Rigetti Computing (RGTI) reported a third-quarter 2025 adjusted loss per share of 3 cents, which is an improvement from the 8 cents loss per share in the same quarter last year and exceeded the Zacks Consensus Estimate by 40% [1][7] - The company's total revenues were $1.9 million, reflecting an 18.1% decline year over year and missing the Zacks Consensus Estimate by 18.5% [3][10] - RGTI's gross profit decreased by 66.5% year over year to $0.4 million, with a gross margin contraction of 2990 basis points to 20.7% [5][10] Revenue and Financial Performance - The decline in quarterly revenue was attributed to the expiration of the U.S. National Quantum Initiative (NQI) and reduced government contract activity [4][10] - Selling, general and administrative expenses rose by 2.3% year over year to $5.9 million, while research and development expenses increased by 17.8% to $15 million, leading to total operating expenses of $20.9 million, a 12.9% increase year over year [8][10] - The operating loss for the quarter was $20.5 million, compared to $17.3 million in the prior-year quarter [8] Financial Position - RGTI ended the third quarter of 2025 with cash, cash equivalents, and short-term investments totaling $446.9 million, up from $425.7 million at the end of the second quarter [9] - The company has no debts on its balance sheet, with cumulative net cash used in operating activities at $43.6 million, slightly higher than $42.1 million a year ago [9] Strategic Developments - Rigetti is advancing its chiplet-based roadmap, targeting 1,000 qubits and 99.8% fidelity by 2027, with ongoing interest in its 9-qubit Novera systems [7][11] - The company is collaborating with QphoX and the U.S. Air Force Research Laboratory to enhance microwave-to-optical conversion, a key step for quantum networking [12] - Rigetti has joined NVIDIA's NVQLink initiative, aiming to integrate quantum processing units with AI supercomputing platforms, reinforcing its hybrid computing vision [12][15] Future Outlook - Management has updated its technology roadmap, expressing confidence in scaling superconducting gate-based systems, with plans to deliver a 100-plus qubit chiplet-based system by year-end [13] - By 2026, Rigetti expects to deploy a 150-plus qubit platform, and by 2027, it aims for over 1,000 qubits using larger 36-qubit chiplets [14]

Key Points IonQ's third-quarter revenue came in much higher than management had previously predicted. Over the last year, IonQ has spent billions of dollars acquiring competing quantum AI businesses. For now, most of IonQ's growth appears fueled by acquisitions, rather than organic demand. 10 stocks we like better than IonQ › The quantum computing race is heating up. However, unlike other popular domains in the artificial intelligence (AI) landscape, quantum AI isn't dominated by big-tech darling ...

Group 1 - Growth investors have increasingly focused on artificial intelligence (AI) and its related sectors, including semiconductors, enterprise software, and sustainable energy [1] - Quantum computing has emerged as a new pillar in the AI movement, utilizing qubits for faster and more efficient computations compared to classical computing [2] - IonQ has positioned itself as a leader in quantum computing, with its stock price surging nearly 300% over the past year, approaching $60 [3] Group 2 - IonQ's marketing emphasizes partnerships with major cloud providers like Amazon Web Services, Microsoft Azure, and Google Cloud Platform, showcasing its integration capabilities [5] - Despite the impressive sales figure of $80 million over the past year, much of IonQ's growth is attributed to acquisitions rather than organic demand, raising questions about the true market demand for its technology [6][7] - IonQ has a substantial cash reserve of $3.5 billion, which is noteworthy given its reliance on acquired growth, indicating potential funding strategies for future acquisitions [8] Group 3 - Quantum computing stocks, including IonQ, are gaining popularity as part of the AI revolution, but historical trends suggest the potential for significant market corrections [9]