D-Wave Quantum Inc. (NYSE:QBTS) is one of the most active US stocks to buy according to analysts. On December 17, Wedbush initiated coverage of D-Wave Quantum with an Outperform rating and $35 price target. Wedbush argues that D-Wave is a standout investment because it is commercial-ready in an otherwise young industry. The firm highlighted the company’s immediate applicability of its annealing systems to complex optimization problems, its expansive reach across multiple industrial verticals, and the compe ...

Market Overview - Major U.S. indexes closed higher, with the Dow Jones Industrial Average rising 0.47% to 48,362.68, the S&P 500 advancing 0.6% to 6,878.49, and the Nasdaq adding 0.5% to finish at 23,428.82 [1] Novo Nordisk - Novo Nordisk's stock saw a slight increase of 0.01%, closing at $48.10, with an intraday high of $48.22 and a low of $47.59; the stock surged nearly 9.5% in after-hours trading to $52.66 [2] - The FDA approved Novo Nordisk's Wegovy pill, the first oral GLP-1 therapy authorized in the U.S. for long-term weight management and cardiovascular risk reduction, based on the OASIS trial where patients lost an average of 16.6% of their body weight [3] Starfighters Space Inc. - Starfighters Space shares skyrocketed by 372.97%, closing at $31.50, with an intraday high of $31.50 and a low of $6.40; however, the stock plummeted 23.75% to $24.02 in after-hours trading [4] - The surge followed the company's IPO priced at $3.59, raising $40 million for hypersonic research and satellite launch operations, amid strong momentum in the space sector driven by defense contracts and investor interest [5] D-Wave Quantum Inc. - D-Wave Quantum's stock climbed 20.07%, closing at $32.19, with a high of $32.39 and a low of $27.62 [6] - The stock's increase was part of a late-December "Santa Rally," driven by retail investors focusing on high-beta quantum computing names, with D-Wave's shares jumping nearly 20% after announcing its Advantage2 system will feature at CES 2026 [7] Sidus Space Inc. - Sidus Space shares jumped 96.98%, closing at $2.28, with an intraday high of $2.59 and a low of $1.80; the stock dropped 39.2% in after-hours trading [8] - The surge was attributed to the company being selected as a contract awardee under the U.S. Missile Defense Agency's SHIELD IDIQ program, supporting the Golden Dome missile defense strategy [9] ZIM Integrated Shipping Services Ltd. - ZIM Integrated Shipping saw a 3.27% rise, closing at $19.88, with an intraday high of $20.14 and a low of $19.30; in extended trading, the stock rose 11.7% to $22.20 [11] - The increase followed the company receiving multiple competitive proposals for acquiring all outstanding shares, with the board evaluating these offers as part of a strategic review [12]

Industry Overview - Quantum computing is entering a significant phase as the industry shifts focus towards scalability, real-world applications, and national strategic priorities by 2026 [1] - Governments are increasing funding for quantum technology, recognizing its importance for national security and AI sovereignty, while enterprises are testing quantum tools for complex optimization problems [2] Company Insights IonQ (NYSE: IONQ) - IonQ is positioned with a strong growth profile, advancing high-fidelity trapped-ion systems beyond 64 qubits through its acquisition of Oxford Ionics [3] - The company's revenue is increasingly derived from direct enterprise and government contracts, with Q3 2025 revenue reported at $39.9 million, a 222% increase year-over-year, despite a $1.1 billion net loss due to aggressive investments [4] - IonQ raised its 2025 revenue forecast to $106 million–$110 million, maintaining an adjusted EBITDA loss midpoint of about $211 million, with shares trading at $46, up over 6% year-to-date [4] D-Wave Quantum (NYSE: QBTS) - D-Wave focuses on application-driven strategies, enhancing the complexity of optimization problems with its Advantage2 system, which supports existing customers using quantum tools [6] - The company's deeper integration into enterprise workflows is leading to recurring usage and higher switching costs, with international expansion reducing reliance on U.S. government demand [7] - QBTS shares are up nearly 150% year-to-date, closing at $23.74 [7] Rigetti Computing (NASDAQ: RGTI) - Rigetti represents an asymmetric investment opportunity, with progress towards higher-fidelity modular superconducting systems potentially rebuilding investor confidence [10] - Recent government contracts, including a $5.8 million deal with the Air Force Research Lab for quantum networking, indicate growing confidence in Rigetti's technologies [10] - RGTI shares are up 17% in 2025, trading at $23, with expectations for positive developments that could lead to a sharp re-rating [11]

Core Insights - D-Wave Quantum's third-quarter 2025 results indicate significant operational improvements, with gross profit reaching $2.7 million, a 156% increase year over year, and GAAP gross margin expanding by 1560 basis points to 71.4% [1] - The company reported adjusted gross profit of $2.9 million, up 131% year over year, with an adjusted gross margin of 77.7%, reflecting a 1050-bps expansion from the previous year [1] - For the first nine months of 2025, revenues surged to $21.8 million, a 235% increase year over year, and GAAP gross margin rose to 84.8% [1] Business Performance - D-Wave's margin growth is attributed to increased sales of high-margin systems and capacity agreements, particularly in Europe and Japan, along with improved efficiency in system deployment [2] - The company is experiencing faster growth in recurring platform revenues compared to traditional service revenues, contributing to overall margin enhancement [2] Financial Position - D-Wave ended the third quarter with a robust cash position of $836.2 million, providing ample resources for continued investment in R&D, regional expansion, infrastructure development, or potential acquisitions [3] - This strong financial standing offers D-Wave a competitive advantage in a market where many rivals depend on raising new capital [3] Competitive Landscape - IonQ reported a 222% year-over-year revenue increase in its third quarter, achieving a world-record 99.99% two-qubit gate fidelity, supported by a pro-forma cash position of $3.5 billion [4] - Rigetti Computing, on the other hand, reported only $1.9 million in revenues for the third quarter of 2025, but maintains a liquidity cushion of approximately $600 million [5] Stock Performance - D-Wave's shares have gained 1.2% over the past 30 days [6] - Analysts suggest an average price target for D-Wave Quantum that indicates a potential increase of 48.3% from the last closing price of $25.08 [9]

Core Insights - The article discusses the potential of quantum computing as the next major investment opportunity, likening it to Nvidia's success in the GPU market [1][2] - It highlights three publicly traded quantum companies that are leading the charge in this emerging field: IonQ, Rigetti Computing, and D-Wave Quantum [1][2] Company Summaries IonQ - IonQ is recognized as a leading candidate in the quantum race, achieving a world-record 99.99% 2-qubit gate fidelity, which is crucial for efficient error correction [3] - The company reported third-quarter 2025 revenue of $39.9 million, marking a 222% year-over-year growth, with full-year guidance of $106 million to $110 million [5] - IonQ has a strong cash position of $3.5 billion, enabling strategic acquisitions and talent acquisition, with recent purchases including Vector Atomic and Oxford Ionics [5] Rigetti Computing - Rigetti employs a modular, multichip architecture using superconducting qubits, which is compared to AMD's strategy in the semiconductor industry [6] - The company's Ankaa-3 system has a median 2-qubit gate fidelity of 99.5%, with a focus on speed as superconducting qubits operate in nanoseconds [8] - Rigetti has commercialized its technology through sales to various sectors and has approximately $600 million in cash and investments, supporting its roadmap for larger quantum systems [9] D-Wave Quantum - D-Wave is often misunderstood as merely an annealer but is generating revenue through its specialized quantum computing for optimization problems [10] - The Advantage2 system features over 4,400 annealing qubits and has secured 133 customers, including major corporations [11] - D-Wave is also developing a universal gate-model computer and has a cash position of around $836 million, reducing liquidity risk [12] Investment Perspective - The article suggests that no single qubit architecture is guaranteed to dominate, with trapped ions offering fidelity, superconducting systems providing speed, and annealing systems delivering utility [13] - Investors are encouraged to consider a diversified approach by investing in all three companies to capitalize on the quantum computing trend [13] - The potential market for quantum computing is projected to reach between $45 billion and $131 billion by 2040, indicating significant upside potential despite current unprofitability and high expectations [14]

Core Insights - Quantum stocks are gaining investor interest in 2025, particularly D-Wave Quantum (QBTS) and Quantum Computing, Inc. (QUBT), with D-Wave focusing on commercial quantum annealing systems and QUBT pursuing photonics-driven initiatives [1] D-Wave Quantum (QBTS) - D-Wave is experiencing rapid commercial adoption, highlighted by a €10 million contract for an Advantage2 system in Italy and deployments supporting U.S. defense work [2] - The customer base has expanded to over 100 revenue-generating clients, including major firms like BASF and SkyWater, demonstrating practical outcomes such as significant reductions in scheduling and emergency response times [3] - D-Wave's management emphasizes its production-ready quantum solutions, which are driving bookings and revenue momentum, distinguishing it from competitors still focused on research [4] - Financially, D-Wave's revenues doubled year-over-year to $3.7 million, with a GAAP gross margin of 71.4% and a cash balance of $836.2 million, up from $29.3 million the previous year [5][6] - Despite strong revenue growth, D-Wave reported a net loss of $140.8 million in the third quarter, primarily due to high operating costs and non-cash warrant charges [7] Quantum Computing, Inc. (QUBT) - QUBT's growth is driven by a strengthened balance sheet, raising over $1.5 billion in 2025, which supports its engineering and manufacturing plans [8][9] - The company is seeing increasing commercial momentum, with revenues growing to $384,000 in the third quarter, driven by R&D contracts and initial cloud access revenues [10] - However, QUBT faces challenges with rapidly rising operating expenses, which nearly doubled to $10.5 million in the third quarter, potentially widening operating losses if revenue growth does not keep pace [11] Performance Comparison - Over the past six months, D-Wave's shares have increased by 27.7%, outperforming QUBT's decline of 10.4% and the S&P 500's rally of 17.8% [12] - Analysts suggest a significant upside for both companies, with QBTS's average price target indicating a potential increase of 64.7% and QUBT's suggesting a 104% increase from their last closing prices [14][16] Conclusion - D-Wave is positioned as a stronger long-term investment opportunity due to its validated commercial progress and extensive customer base, while QUBT remains an early-stage player with substantial capital but still developing its commercialization path [18]

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 - Rigetti Computing (RGTI) is demonstrating early commercial traction with approximately $5.7 million in purchase orders for its Novera quantum processing units (QPUs) and related services, indicating validation of its hardware capabilities after extensive R&D investment [1][7] - The company secured a $5.8 million award from the Air Force Research Laboratory in collaboration with QphoX, positioning Rigetti at the forefront of quantum networking [2][7] - Despite uneven quarterly revenues, these developments suggest a turning point for Rigetti, as its technology is being adopted rather than merely tested [3][7] Company Developments - Rigetti's recent contracts and partnerships highlight a successful alignment of technological innovation with commercial opportunities, showcasing growing institutional confidence in its manufacturing and chip-packaging capabilities [2] - The deployment of two Novera systems to an Asian tech manufacturer and a California AI startup marks Rigetti's most significant commercialization milestone to date, with deployments scheduled for the first half of 2026 [1][2] Financial Performance - Rigetti's shares have increased by 136.3% year-to-date, significantly outperforming the industry growth of 19.2% [6] - The Zacks Consensus Estimate for Rigetti's 2025 earnings indicates a substantial 86.1% increase compared to the previous year [10] Valuation Metrics - Rigetti is currently trading at a price-to-book ratio of 21.13, which is above the industry average, and carries a Value Score of F [8]

Core Insights - Rigetti Computing (RGTI) has secured purchase orders totaling approximately $5.7 million for two 9-qubit Novera quantum computing systems, indicating a significant advancement in commercial traction for its hardware [1][6] - The orders are from an Asian technology manufacturer and a California-based AI startup, with deliveries expected in the first half of 2026, reflecting increasing global interest in small-scale, upgradeable quantum systems [1][6] Company Developments - The Novera platform utilizes Rigetti's Ankaa-class architecture, featuring a 9-qubit processor designed for high-fidelity operations, and includes advanced control systems and integration support for quantum research [2] - The recent orders validate Rigetti's Fab-1 manufacturing model and modular system design, positioning the company favorably in the expanding quantum R&D hardware market [2][6] Peer Updates - D-Wave Quantum has launched its Advantage2 system, enhancing qubit connectivity and coherence, and is expanding developer access with new hybrid toolkits [3] - Quantum Computing Inc. has shipped its first commercial entangled photon source to a research institution in South Korea, marking a significant step in its market transition [4] Financial Performance - RGTI shares have increased by 187.7% year-to-date, significantly outperforming the industry average growth of 18.7% [5] - Rigetti's current price-to-book ratio stands at 25.73, which is above the industry average, and the company has a Value Score of F [8] - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests an 86.1% increase compared to the previous year [10]

Core Viewpoint - D-Wave Quantum Inc. has experienced significant share price fluctuations, with a notable increase of 68% in the last month, driven by various factors including Federal Reserve actions and developments in the quantum tech sector [2][3][5]. Price Movement Analysis - The stock price of D-Wave Quantum has shown a trajectory of dipping early in 2025, remaining flat for several months, before climbing in May and leveling off during the summer [1]. - The recent rally is attributed to the Federal Reserve's interest rate reduction announcement on September 17, which is favorable for growth stocks like D-Wave [5]. Market Context - A White House memo has identified AI and quantum technology as top priority areas, indicating potential supportive measures for these industries at the national level [6]. - Competitor Rigetti Computing secured a significant three-year contract with the Air Force Research Laboratory, which may have influenced market sentiment towards quantum companies [6][7]. Financial Performance - D-Wave Quantum has a market value exceeding $9 billion, but reported revenues of only $3 million for the latest quarter, highlighting a disparity between market valuation and financial performance [3][8]. - The company has an astronomical price-to-sales ratio of over 1,034, suggesting it is not approaching undervalued status [8]. Analyst Ratings and Forecasts - Analysts have a consensus price target of $20.27 for D-Wave Quantum, indicating a potential downside of 19.77% from the current price of $25.27 [8]. - All 11 analysts rating the firm have assigned a Buy rating, yet the consensus price target is significantly lower than the current trading level, suggesting caution [12]. Investor Sentiment - There has been a surge in short interest for D-Wave Quantum, increasing by about 10% recently, indicating mixed investor sentiment [11]. - Retail investors have played a significant role in driving the stock's ascent, with institutional ownership remaining below 43% [11].