Tyler Crowe: Looking back at some of the stock market darlings of 2025, this is Motley Fool Money. Welcome to Motley Fool Money. My name's Tyler Crowe. Today, I'm joined by longtime contributors, Matt Frankel and Jon Quast. The end of the year is sneaking up on us pretty quick, and I don't know, there's some instinctual feel as investors to look back at the year as December rolls around and take stock, if you will, don't mind my pun of the stock market darlings of 2025. What did well? What worked, and what ...

Key Points This quantum computing stock is up triple-digit percentage points in 2025, but it could keep climbing in 2026. Strong sales momentum is pushing the stock higher, as it attracts dozens of new customers with longer contract terms. The stock remains highly speculative, but its commercial sales make it less so than other quantum computing stocks. 10 stocks we like better than D-Wave Quantum › Advancements in the technologies used for quantum computing over the last few years have led inve ...

Core Insights - Quantum computing stocks have shown significant potential, with some stocks rallying as much as 5,400% over a trailing 12-month basis, indicating strong investor interest in the technology [4] - Historical trends suggest that early-stage technologies often experience a bubble-bursting event, leading to skepticism about the sustainability of current valuations in the quantum computing sector [6][7] - The current price-to-sales (P/S) ratios for quantum computing stocks are alarmingly high, with IonQ at 163, Rigetti Computing at 1,029, D-Wave Quantum at 337, and Quantum Computing Inc. at 3,346, indicating they are well beyond historical bubble territory [17] Industry Overview - The rise of artificial intelligence (AI) has been a significant driver for companies like Nvidia, which has seen its shares increase by over 21,800% in the past decade, setting a high benchmark for future technologies [2] - Quantum computing is still in its early commercialization phase, with major companies like Amazon and Microsoft providing access to quantum-cloud services, but broad-based commercialization is still years away [8] - The barrier to entry in quantum computing may be lower than perceived, as major tech companies like Alphabet and Microsoft are entering the space with their own quantum processing units [19] Company Analysis - IonQ raised $2 billion by selling 16.5 million shares at $93 per share, a common practice among early-stage companies that often leads to shareholder dilution [10][11] - Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. are expected to follow similar capital-raising strategies, which could negatively impact their stock prices [12] - The financial health of quantum computing companies is concerning, with IonQ reporting a gross margin of -747.41% and Rigetti Computing at -6849.48%, highlighting ongoing operational losses [9][20] Competitive Landscape - The "Magnificent Seven" tech giants have the financial resources to dominate the quantum computing space, posing a significant threat to smaller players like IonQ and Rigetti Computing [21][22] - The potential economic value of quantum computing is estimated to reach $850 billion by 2040, attracting interest from well-capitalized companies that can outspend smaller competitors [21]

Core Viewpoint - IonQ's stock has experienced significant volatility, peaking in October 2024 and then declining sharply at the start of 2025, reflecting the broader instability in the quantum computing sector, which is still in its early stages of commercial viability [2][3]. Company Overview - IonQ is a prominent player in the quantum computing space, utilizing a trapped ion technology that offers higher accuracy compared to competitors using superconducting methods. IonQ has achieved a 99.99% 2-qubit gate fidelity, which is a critical measure of accuracy [5][8]. - Despite a 30% increase in stock value in 2025, IonQ's stock was previously up 96%, indicating substantial fluctuations [3]. Market Position and Competition - IonQ holds a competitive edge with its accuracy, as most rivals struggle to achieve 99.9% 2-qubit gate fidelity. However, the commercial application of quantum computing is projected to be several years away, with 2030 being a target year for broader availability [8][11]. - Competitors using superconducting technology may not match IonQ's accuracy but have faster processing speeds, which could become advantageous if they close the accuracy gap [9][10]. Future Outlook - IonQ's success in 2026 hinges on two main factors: the market's risk appetite and IonQ's ability to maintain or enhance its accuracy lead over competitors. A shift towards risk aversion in the market could negatively impact IonQ's stock performance [11]. - If IonQ can further improve its accuracy and establish a first-mover advantage, it could position itself favorably in the market, potentially leading to significant investment returns [11][12].

The New Year is shaping up to be an important one for this quantum computing stock.Don't let IonQ's (IONQ 5.09%) recent sell-off fool you. The stock remains one of the most intriguing opportunities for patient investors.More importantly, IonQ is still one of the top up-and-coming players in quantum computing. Sure, the competition is intense in this space. However, IonQ's trapped-ion architecture and development of other technologies that round out its quantum platform differentiate it from the pack.Investo ...

Core Insights - D-Wave Quantum has experienced significant stock price volatility, rising nearly 5,000% from a low of around $0.40 in early 2023 to a current price of $26.95, despite concerns about the company's long-term viability [1][6] - The company reported revenue of $22 million for the first three quarters of 2025, representing over 200% growth compared to the same period in 2024, indicating rapid revenue growth [2] - Despite positive revenue growth, D-Wave's business model is considered fragile, with a lack of significant customer commitments to quantum computing technology [4][7] Company Overview - D-Wave is positioned as a first mover in the quantum computing space, having sold its first quantum computer in 2011 for approximately $10 million [5] - The company's market capitalization is currently $9 billion, with a gross margin of 82.82% [6][7] - D-Wave's revenue in 2024 was only $8.8 million, which is less than its initial sale 13 years prior, highlighting inconsistent revenue growth despite ongoing technological development [7] Competitive Landscape - D-Wave faces competition from major players in the quantum computing industry, including Alphabet, Intel, and Microsoft, which may challenge its market position [8] - The company’s remaining performance obligations (RPOs) decreased from $4 million in Q3 2024 to $2.9 million in Q3 2025, indicating potential challenges in securing future revenue [9] - D-Wave's bookings for 2025 are down 7% compared to the same period in 2024, suggesting uncertainty in future growth prospects [10] Management and Investor Sentiment - Insider trading activity, particularly CEO Alan Baratz selling $43 million of his shares, raises concerns about management's confidence in the company's future [11] - The overall sentiment towards investing in D-Wave is cautious, with doubts about its competitive edge and long-term trajectory [11]

Core Insights - Horizon Quantum has become the first private company to operate a commercial quantum computer in Singapore, marking a significant milestone ahead of its planned U.S. listing [1][2] - The company, founded in 2018 by quantum researcher Joe Fitzsimons, has successfully integrated components from various quantum computing suppliers, making it the first pure-play quantum software firm to own its own quantum computer [2] Company Focus - The primary focus of Horizon Quantum is to assist developers in utilizing quantum computers for practical applications, emphasizing the importance of programming these advanced systems effectively [3] - The company is dedicated to building the necessary software tools and infrastructure to support applications for quantum computing systems [3] Technical Integration - Horizon Quantum acknowledges the significance of understanding the entire technology stack, from software to physical components, which is why it has established a test bed for its quantum computing systems [4]

Core Insights - Horizon Quantum Computing has successfully assembled and integrated its first operational quantum computer at its headquarters in Singapore, marking it as the first quantum software company to own and operate such a system [1][2][3] Company Developments - The quantum computer was assembled from best-in-class components, including Maybell's cryogenic platform, Quantum Machines' control electronics, and a Rigetti superconducting quantum processor, establishing a testbed facility capable of hosting multiple systems [4][5] - The modular design of the quantum system allows for the swapping of control electronics and quantum processors, enabling diverse configurations and architectures for software integration [5] - Horizon Quantum aims to provide hardware-agnostic development tools for quantum computers, with plans to operate across various hardware platforms, including cloud-based systems and traditional data centers [5][6] Strategic Vision - The company emphasizes the importance of tight integration between hardware and software to achieve quantum advantage, positioning itself to build a sophisticated development and execution stack that closely coordinates with hardware control systems [6][7] - Horizon Quantum's integrated development environment, Triple Alpha, is expected to enhance its functionality through the commissioning of the new quantum computer, facilitating seamless quantum application development [3][9] Leadership and Future Plans - Dr. Joe Fitzsimons, founder and CEO, expressed confidence that establishing an in-house hardware testbed will significantly contribute to the company's mission of solving complex real-world problems through quantum computing [6] - The company is in the process of completing a business combination with dMY Squared Technology Group, which is anticipated to accelerate its growth and execution towards its vision [7][12]

Industry Overview - Quantum computers are expected to solve problems that classical computers cannot or would take years to solve, utilizing quantum bits (qubits) in superposition to encode more data simultaneously [1] - The global quantum computing market for hardware and software is projected to reach between $90 billion and $170 billion by 2040, with a current valuation of approximately $1.4 billion in 2024, indicating a compound annual growth rate (CAGR) of about 30% to 35% [2] Market Growth Potential - Significant growth in the quantum computing market is anticipated towards the backend of the forecast period, as the technology is still in its early stages and several challenges need to be addressed for practical applications [3] Patent Activity Insights - Monitoring patent activity is a valuable tool for investors in emerging technologies, as patents provide a temporary monopoly on inventions [5] - The top companies in quantum computing patent activity in 2024 include IBM with 117 patents (16% increase), Alphabet with 63 patents (13% increase), and Microsoft with 21 patents (45% decrease) [9][11] - The U.S. leads in quantum computing patents awarded in 2024, with IBM and Alphabet being the frontrunners, while Rigetti Computing holds the most patents among pure-play quantum companies [10][12]

Accessibility StatementSkip Navigation -Â New collaboration plans to unite strengths of both leaders to design a connected network of large-scale, fault-tolerant quantum computers, targeted by early 2030s-Â Companies plan to deliver an initial demonstration of multiple networked quantum computers within five years-Â Distributed quantum network could lay groundwork towards quantum computing internet defined by quantum computers, sensors, and communication in the late 2030s YORKTOWN HEIGHTS, N.Y. and SAN JOSE ...