D-Wave Quantum Inc. (NYSE:QBTS) is one of the stocks Jim Cramer was focused on. Cramer noted that a few speculative stocks should be included in a portfolio and said: “What [are] examples of what speculation means?… IONQ just signed a Memorandum of Understanding with the Department of Energy, an MoU with the DoE, to develop quantum technologies in space. When you see deals like this, they ignite D-Wave. We had them on, D-Wave Quantum, pretty interesting. Rigetti Computing, huge money losers, but… their st ...

Core Insights - Rigetti Computing (RGTI) is focusing on commercial viability through a service-based model, offering quantum access via cloud platforms, highlighted by the launch of its 84-qubit Ankaa-2 system in December 2023 [1][7] Group 1: Product Development and Performance - The Ankaa-2 system, launched in December 2023, features a 2.5x performance improvement over its predecessor and achieves approximately 98% median two-qubit fidelity, marking it as the most commercially viable Quantum Processing Unit (QPU) to date [2][7] - In August 2024, Rigetti expanded access to the Ankaa-2 system via AWS Braket, enabling customers to run quantum workloads on demand with daily system availability [2][7] Group 2: Business Model and Market Strategy - Rigetti's QPU-as-a-Service model allows the company to reach a broader user base, including enterprise, government, and academic customers, without the need for full-scale quantum systems [3] - The cloud-first approach positions Rigetti to monetize quantum usage on a consumption basis, potentially bridging its near-term revenue gap while demonstrating the practical value of its superconducting quantum technology [3] Group 3: Competitive Landscape - IonQ is recognized for setting a commercial benchmark in the cloud quantum model, integrating its trapped-ion quantum systems across major cloud platforms and focusing on application-layer solutions [4] - D-Wave offers a different cloud-based commercialization model through its Leap platform, which has successfully handled millions of production jobs and supports enterprise clients in various sectors [5] Group 4: Financial Performance and Valuation - Rigetti's shares have declined by 25.7% year-to-date, contrasting with the industry's growth of 12.9% [6] - The company trades at a price-to-book ratio of 15.73, which is above the industry average, and carries a Value Score of F [9] - The Zacks Consensus Estimate for Rigetti's 2025 earnings suggests a significant 86.1% increase compared to the previous year [11]

Core Insights - The convergence of quantum computing, AI, and high-performance computing is becoming essential for innovation across various sectors, attracting investor interest in companies like D-Wave Quantum Inc. and NVIDIA Corporation [1][2] NVIDIA Corporation - NVIDIA's Data Center business generated $47.5 billion in revenues for fiscal 2024, more than tripling from the previous year, with a fourth-quarter revenue surge of 409% year over year to $18.4 billion [6] - NVIDIA's AI platforms are utilized by over 80 automakers, contributing over $1 billion in automotive-related data center revenues in 2024, and its healthcare platforms support AI-driven drug discovery in a $10 trillion industry [7] - The company achieved a non-GAAP gross margin of 76.7% in the fourth quarter, with expectations to normalize to the mid-70s range for 2025, and returned $9.9 billion to shareholders through buybacks and dividends in 2024 [8] D-Wave Quantum Inc. - D-Wave achieved quantum supremacy by solving a complex material science problem with its 1,200-qubit Advantage2 system, distinguishing itself from competitors like Google and IBM [9][10] - D-Wave's bookings surged 502% in the fourth quarter of 2024, driven by a significant sale to Germany's Jülich Supercomputing Centre, and its Quantum Compute-as-a-Service model is gaining traction across various sectors [10] - The company has a cash position exceeding $300 million, with an adjusted net loss shrinking year over year and a gross margin of 72.8% on a non-GAAP basis, indicating improving operational efficiency [11] Comparative Analysis - D-Wave is trading at a forward 12-month price-to-sales ratio of 67.86X, significantly higher than NVIDIA's 11.79X, suggesting NVIDIA is more attractively valued compared to D-Wave and its historical averages [14] - NVIDIA's average price target of $177.43 implies a 76.3% upside, while D-Wave's average price target of $6.71 implies only a 0.5% upside from the last close [16][17] Future Outlook - D-Wave is positioned as a serious contender in the future of computing, potentially becoming as significant in quantum as NVIDIA is in AI, with strong execution and rapid growth [19]