Does the quantum computing stock deserve its recent run-up?Shares of D-Wave Quantum (QBTS 14.89%) are jumping on Wednesday, up 10.5% as of 2:50 p.m. ET. The rise comes as the S&P 500 and Nasdaq Composite gained 0.7% and 0.5%, respectively.D-Wave, a company developing quantum computing technology, is riding momentum in the broader quantum market as its stock receives a price target upgrade from a Wall Street analyst.This analyst is bullishAn analyst at the investment bank B. Riley Financial increased their p ...

Core Insights - Quantum computing is a developing investment field with significant financial inflow but currently lacks economic value addition [1] - Rigetti Computing is a notable player in the quantum computing sector, attracting investor interest [2] Company Overview - Rigetti Computing is a pure play in quantum computing, focusing all resources on this technology [4] - The company currently has minimal revenue, primarily from research contracts, and is valued at approximately $4 billion [5] Investment Potential - If Rigetti Computing achieves relevance in quantum computing, its stock could experience substantial growth due to its current lack of revenue [5] - The potential market for quantum computing is projected to grow significantly, with estimates of $1 billion to $2 billion annually before 2030 and $15 billion to $30 billion annually between 2030 and 2040 [10] Competitive Landscape - Rigetti lacks the financial backing of larger competitors like Alphabet, which generated $75 billion in free cash flow over the past year [7] - The absence of a backup plan poses a risk; if competitors surpass Rigetti, the stock could become worthless [6] Market Outlook - Quantum computing has diverse applications, including weather forecasting, logistics, and artificial intelligence, but widespread adoption is still years away [9] - Should Rigetti capture 20% of the projected market by 2040, it could generate $3 billion in annual revenue, indicating significant upside potential [10] Investment Strategy - Investing in Rigetti Computing is considered high-risk, and portfolio size should be a factor in investment decisions [11] - Smaller position sizes can mitigate risks, allowing for potential substantial returns if the investment performs well [12]

Group 1: Industry Overview - Quantum computing is an emerging technology within the artificial intelligence (AI) sector that has garnered significant interest from AI enthusiasts [1] - McKinsey & Company forecasts that quantum computing could add trillions in economic value in the coming decades, indicating its potential to revolutionize the AI megatrend [2] Group 2: Company Performance - Quantum Computing's shares have increased by 2,480% over the past year, significantly outperforming the S&P 500 and Nasdaq Composite [3] - Despite the substantial rise in share price, Quantum Computing has only generated approximately $385,000 in revenue over the last 12 months, suggesting that the stock's performance is driven more by macro narratives than by company-specific fundamentals [5] Group 3: Market Sentiment and Valuation - Nvidia's CEO has expressed optimism about quantum computing, which may positively influence investor sentiment due to Nvidia's importance in the broader AI narrative [6] - Some economists speculate that a potential interest rate cut from the Federal Reserve could benefit growth stocks like Quantum Computing, further fueling investor enthusiasm [7] - Quantum Computing has a price-to-sales (P/S) ratio exceeding 5,200, raising questions about how a company with minimal revenue can sustain a multibillion-dollar market cap [9] - The recent issuance of 14,035,089 shares at $14.25 indicates that management recognizes the stretched valuation and is taking advantage of inflated prices [11] - The current valuation of Quantum Computing suggests it may be trading beyond a sustainable level, with the stock appearing cheap at $18 per share but reflecting a speculative opportunity [12]

Core Insights - The quantum computing company is making significant progress towards its goals in developing innovative technology [1] Company Developments - The company is focused on advancing its quantum computing capabilities, indicating a strong commitment to innovation in this emerging field [1] Market Context - Stock prices referenced were from the afternoon of July 10, 2025, suggesting a specific timeframe for market performance evaluation [1] - The video discussing these developments was published on July 12, 2025, providing a recent update on the company's progress [1]

Core Insights - IonQ has been recognized for making significant advancements in technology and moving closer to commercialization, indicating a positive trajectory for the company [1]. Company Developments - The company has shown improvements in its technology, which is crucial for its growth and market positioning [1]. Investment Position - There is a beneficial long position in IonQ shares, suggesting confidence in the company's future performance [2].

Group 1 - Quantum computing is an exciting technology that could lead to significant breakthroughs in AI and other fields if it becomes widely available [1] - Investing in quantum computing can be challenging, with two main approaches: investing in established tech giants or in start-ups, each having its own advantages and disadvantages [2][4] - Established companies like Alphabet and Microsoft have substantial resources, generating around $19 billion and $20 billion in free cash flow respectively, allowing them to invest heavily in quantum computing [5][6] Group 2 - Established companies do not need to win the quantum computing race to ensure their investment is safe, unlike start-ups which face higher risks [6] - Start-ups like IonQ and D-Wave are focused solely on quantum computing and have begun generating sales, which could lead to explosive returns if they succeed [7][8] - A mixed investment strategy, including both established companies and start-ups, is recommended to balance risk while capitalizing on potential growth in the quantum computing sector [8][9] Group 3 - Investing in a combination of stocks such as Alphabet, Microsoft, IonQ, and D-Wave allows for exposure to both stable businesses and high-risk, high-reward opportunities [9] - The future viability of quantum computing will be assessed through the sales performance of companies like D-Wave, indicating the technology's potential impact [10]

Group 1: Quantum Computing Market Overview - Several companies in the "Magnificent Seven" are heavily investing in quantum computing, including Nvidia, Alphabet, Microsoft, and Amazon, which have developed custom chips and software for this technology [2] - IonQ has emerged as a significant player in the quantum computing space, with its stock rising by 432% over the last year, outperforming the S&P 500 and Nasdaq indexes, which increased by 11% and 13%, respectively [2] Group 2: IonQ's Financial Performance - IonQ generated $43 million in revenue over the last year but burned through more than $300 million, indicating a concerning cash burn trend [9] - Despite the high cash burn, IonQ's market capitalization has soared to $11.7 billion, resulting in a price-to-sales (P/S) multiple of 238, which is nearly tenfold that of Nvidia [11] Group 3: Investment Sentiment and Valuation - IonQ's stock is viewed as speculative, with its valuation appearing unjustified given the company's financial performance [12] - The rise in IonQ's share price is attributed to optimistic narratives surrounding quantum computing and investor fatigue with established tech stocks [12] - Diversifying investments in established companies like Nvidia, Amazon, Microsoft, Alphabet, or IBM may provide exposure to quantum computing while mitigating risks associated with IonQ [13]

Group 1 - The Portnoy Law Firm has initiated an investigation into D-Wave Quantum Inc. for possible securities fraud and may file a class action on behalf of investors [1][3] - Block & Leviton LLP is also investigating D-Wave Quantum Inc. following a report by Kerrisdale Capital, which questions the credibility of D-Wave's technology and claims it is more of a marketing strategy than a genuine advancement in quantum computing [3] - D-Wave Quantum's stock experienced a decline of up to 6% during intraday trading after the release of the Kerrisdale Capital report [3] Group 2 - The Portnoy Law Firm offers a complimentary case evaluation for investors seeking to recover losses and encourages them to contact attorney Lesley F. Portnoy [2][4] - The founding partner of the Portnoy Law Firm has successfully recovered over $5.5 billion for aggrieved investors [4]