Latest news with #D-WaveQuantum
Yahoo
4 hours ago
- Business
- Yahoo
Meet the Monster Quantum Computing Stock That Continues to Crush IonQ, Rigetti Computing, and Nvidia
Many megacap technology companies such as Nvidia, Amazon, Alphabet, IBM, and Microsoft are developing quantum computing technology. However, emerging names such as IonQ and Rigetti Computing seem to fetch most of the attention when it comes to quantum computing stocks. Shares of D-Wave Quantum have outperformed many of its peers so far this year, making it an interesting opportunity right now. 10 stocks we like better than D-Wave Quantum › Over the last couple of years, investors have witnessed a sharp rise in certain pockets of the technology realm thanks to rising interest in artificial intelligence (AI). Companies operating across industries such as semiconductors, enterprise software, and cloud computing have been particular beneficiaries of AI investment so far. Within the last year, however, quantum computing stocks have started to emerge as a new trend fueling the AI revolution. IonQ, Rigetti Computing, and even Nvidia are common names surrounding the quantum computing narrative. However, what if I told you there is another quantum computing stock that has outperformed all three of the leaders above? As of the closing bell on June 27, shares of D-Wave Quantum (NYSE: QBTS) have gained 67% so far this year -- absolutely trouncing the performances of its peers. Let's explore the driving force behind D-Wave's monster price action and assess if now is a good opportunity to scoop up some shares. While quantum computing is not yet widely commercialized, technology enthusiasts have become interested in its development due to its advantages over classic computers. Quantum computers are believed to possess superior processing power compared to today's most sophisticated computers. In theory, this could lead to greater efficiency advantages in solving complex problems across industries such as energy, financial services, and pharmaceuticals. Global management consulting firm McKinsey & Company estimates that quantum computing could generate $1.3 trillion in economic value by the middle of next decade. Considering that the world's largest AI developers such as Alphabet, Microsoft, Amazon, IBM, and Nvidia are all building quantum computing hardware and software, I'm optimistic that the opportunity could be quite lucrative in the long run. The charts below illustrate growth in D-Wave's revenue and cash balance over the last year. As indicated by the steep slope of each line, D-Wave's growth appears to be hitting a new stride. With first-quarter revenue soaring by 509% year over year and ample cash on the balance sheet, I suspect some investors are looking past some subtle nuances from the financial profile above and pouring into D-Wave stock. Smart investors understand this magnitude of growth is less impressive considering D-Wave only generated $15 million of sales during the quarter. With that in mind, it becomes clear that the majority of D-Wave's revenue base over the last 12 months was concentrated in a single quarter. To me, this makes the company's ongoing trajectory somewhat uncertain and potentially lumpy given the lack of scale D-Wave has achieved so far. Moreover, despite its small revenue figures, D-Wave's cash balance skyrocketed by about $126 million during the first quarter. Per the company's 10Q filing, D-Wave raised this capital through an at-the-money (ATM) offering. Another way of looking at this is that D-Wave is not yet generating profitability that it can reinvest back into the business. Rather, the company is taking advantage of its rising stock price by issuing new shares at an inflated valuation in order to raise capital. As of this writing, D-Wave boasts a market capitalization of roughly $4.5 billion. Given the company's trailing-12-month sales of just $21 million, this implies that D-Wave trades for a price-to-sales (P/S) multiple of about 150. As the chart below illustrates, D-Wave's P/S ratio is roughly 4 times higher than some of the peak multiples investors witnessed in names such as Amazon and Cisco during the dot-com bubble in the late 1990s. Not only do I think D-Wave's valuation is unsustainable, but management may think so, too. According to recent filings, D-Wave is considering raising an additional $400 million through subsequent stock issuances. In my eyes, a move like this could suggest that management understands that the company's stock is overbought, and therefore is willing to dilute shareholders in order to take advantage of a frothy, overstretched valuation to raise additional funds. While I understand the excitement surrounding quantum computing, I think shares of D-Wave Quantum have gotten ahead of themselves. The company is trading for a premium valuation, despite being a highly speculative opportunity at this time. I would pass on investing in D-Wave Quantum stock right now and instead opt for more established companies with strong footholds in the AI landscape. Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and D-Wave Quantum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $697,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $939,655!* Now, it's worth noting Stock Advisor's total average return is 1,045% — a market-crushing outperformance compared to 178% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 30, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, International Business Machines, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Meet the Monster Quantum Computing Stock That Continues to Crush IonQ, Rigetti Computing, and Nvidia was originally published by The Motley Fool
Business Insider
3 days ago
- Business
- Business Insider
3 Best Quantum Computing Stocks to Buy Now, According to Analysts – 6/27/2025
Quantum computing, though still in its early stages, is expected to be the next big revolution after artificial intelligence (AI). This emerging technology can tackle complex problems more quickly than traditional computers due to its ability to process information using quantum bits (qubits) instead of regular bits. Thus, investing in quantum computing stocks could give long-term investors a chance to benefit from new technology and market growth. Confident Investing Starts Here: To find such stocks, take a look at TipRanks' Quantum Computing Stocks page. It allows you to compare stocks based on analyst consensus, price targets, and key technical indicators, among others. Today, we've selected stocks with 'Strong Buy' ratings from Wall Street analysts. Here are today's top quantum computing stock picks. Click on any ticker to thoroughly research the stock before you decide whether to add it to your portfolio. D-Wave Quantum (QBTS) – D‑Wave is best known for its Advantage and newer Advantage2 quantum annealing systems. The Advantage2 model has over 4,400 qubits and 20-way connections, helping it solve tough problems faster and more easily. It's now commercially available via the Leap cloud platform in 40+ countries. The stock has earned an analyst consensus of Strong Buy. With an average price target of $9.50, the stock's implied upside is 30.49%. Amazon (AMZN) – Through AWS, Amazon unveiled its first quantum computing chip, named Ocelot, earlier this year. The chip integrates built-in error correction using 'cat qubits,' reducing error-repair overhead by up to 90%. This new chip positions Amazon as a key player in the quantum computing race alongside Alphabet's (GOOGL) Google and Microsoft (MSFT). The stock has earned an analyst consensus of Strong Buy. With an average price target of $242.10, the stock's implied upside is 11.51%. Nvidia (NVDA) – Nvidia is pushing into quantum computing with a focus on hybrid systems combining QPUs and GPUs. Its CUDA‑Q platform enables developers to run integrated quantum-classical computing workflows and simulate quantum circuits on GPUs. Nvidia is also working on faster quantum systems by pairing QPUs with AI supercomputers to improve speed and power. NVDA stock has an analyst consensus of Strong Buy. Also, its average price target of $177.50 implies upside potential of 14.50%.
Business Insider
25-06-2025
- Business
- Business Insider
Top Investor Bangs the Drum on D-Wave Quantum Stock
D-Wave Quantum (NYSE:QBTS) has become one of the most explosive names in the quantum computing space – and the numbers speak for themselves; shares have skyrocketed a staggering 1,225% over the past year. Confident Investing Starts Here: Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Much of this momentum is driven by excitement over quantum computing's long-term promise – the potential to solve problems that are virtually impossible for classical systems. However, skeptics argue that realizing this vision could take years, as truly general-purpose quantum computers remain largely theoretical. D-Wave, however, has taken a different approach – one that may explain why investors are paying such close attention. Rather than waiting for full-fledged universal quantum systems to mature, the company has focused on quantum annealing, a specialized subset of the field. And it claims to have already reached a critical breakthrough: what it calls ' practical quantum supremacy.' Using its 1,200-qubit Advantage2 annealing quantum computer, D-Wave says it successfully solved a real-world materials simulation problem – modeling a complex magnetic spin system – in mere minutes. According to the company, this is a task that would take even the world's fastest supercomputers millions of years and more energy than the planet produces in a year. As such, being the only company to have shown 'quantum supremacy on a meaningful problem,' top investor Yiannis Zourmpanos thinks the company is now 'distinguished from competitors like IonQ and Rigetti, whose gate-based quantum systems remain years away from delivering comparable commercial applications and value.' The technical capabilities of D-Wave's Advantage2 system further strengthen its 'competitive edge.' With over 4,400 qubits and improved 20-way connectivity, it offers faster, higher-quality solutions thanks to doubled coherence time and a 40% energy scale boost. These upgrades enable it to tackle more complex problems, as seen in Ford Otosan's use of the system which resulted in a sixfold reduction in scheduling time. Features like Fast Anneal and error mitigation further enhance performance, making Advantage2 well-suited for optimization in sectors like pharma, logistics, and manufacturing. Meanwhile, the company reported Q1 FY25 revenue of $15 million, a 509% year-over-year jump, driven primarily by a $12.6 million Advantage system sale to the Julich Supercomputing Center. While that is an impressive gain, Zourmpanos does note a weakness in its revenue model: lumpy income and long sales cycles, especially from system sales to government and research institutions. Yet, this weakness is driving the company to diversify its revenue streams and strengthen its 'go-to-market strategy.' D-Wave is expanding its revenue base through the Leap Quantum Launchpad program, which provides a three-month trial of quantum computing access and expert support. Early conversions from these trials to paid engagements highlight the potential for growing recurring revenue from its quantum computing-as-a-service (QCaaS) model. Additionally, D-Wave's push into blockchain and AI applications – using quantum computing to enhance blockchain security and cut energy consumption by as much as 1,000x – could create new, recurring revenue streams. 'Despite lumpy sales and lofty valuation, its edge in annealing tech, rising QCaaS revenue, and growing client base point to long-term upside,' the 5-star investor summed up. Accordingly, Zourmpanos, who is among the top 1% of TipRanks' stock pros, rates QBTS shares a Buy. (To watch Zourmpanos's track record, click here) The Street's analysts unanimously agree with that take. Based on Buys only – 6, in total – the stock claims a Strong Buy consensus rating. Going by the $16.80 average target, a year from now, shares will be changing hands for a 12% premium. (See QBTS stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
Yahoo
22-06-2025
- Business
- Yahoo
Will Quantum Computing Stocks Soar in the Second Half?
Some quantum computing stocks delivered gains of more than 1,000% last year. The technology has game-changing potential, and quantum companies may thrive if the economic backdrop is supportive. 10 stocks we like better than D-Wave Quantum › Quantum computing stocks skyrocketed in 2024, with names such as Quantum Computing and Rigetti Computing surging by more than 1,000%. Investors were eager to get in on what could become the next game-changing technology, and revenue growth as well as scientific progress from some of these quantum specialists boosted optimism. Even after those gains, it's very possible that quantum stocks will climb in the second half of this year, and here's why. So, first, a quick note about why investors see so much potential in quantum computing. This is because this type of computing, based on quantum mechanics, makes it possible to solve problems that today's classic computers can't handle. Quantum computing can do this by using qubits -- instead of the bits used by today's computers -- to store data. And while bits store and process data as zeros or 1s, qubits can represent a zero, a one, or both at the same time. This allows for tremendous scaling, and as a result, a problem that would take a classic computer 1,000 years to solve may take a quantum machine about five minutes. Right now, quantum companies offer hardware and services to customers, but we're still in the early stages of development. Experts have said that truly useful quantum computers are several years away. The good news is that this means these companies have plenty of room to run when it comes to revenue growth and share price performance. It's clear that if quantum companies reach their development goals, these computers could revolutionize many industries. All of this helped quantum computing pure-play companies climb last year. The bull market and optimism about the economy ahead offered the perfect environment for growth stocks to excel. But in recent months, concerns about President Donald Trump's import tariff plan weighed on these players. The idea was that tariffs could lead to higher prices at home, prompting customers of quantum companies to rein in their spending. But over the past few weeks, progress in trade talks and even initial deals with the U.K. and China have made investors more optimistic about the future. And corporate earnings haven't suggested any slowdown in spending on technology -- in fact, companies continue to reiterate their commitments to such projects. This backdrop supports the idea of more gains for quantum companies in the second half, especially for certain players such as Rigetti and IonQ, which haven't yet fully recovered -- they're down 25% and 5%, respectively, year to date. And if they show some growth in revenue in the coming quarters, this could act as a positive catalyst for share performance, too. But this doesn't mean that stocks that have continued to advance, such as D-Wave Quantum (NYSE: QBTS), which is heading for an increase of more than 80%, won't keep on rising. For example, D-Wave just recently released its Advantage2 quantum computer, which is accessible both on the cloud and on-premises. More than 20 million customer problems have been run through the prototype, and the company says the computer is now ready for use in areas such as materials simulation and artificial intelligence (AI). Uptake of this new platform and further revenue gains -- D-Wave's revenue last quarter soared 500% to a record $15 million -- could offer this highflier an additional boost. Of course, it's important to keep in mind that these pure-play quantum companies aren't yet profitable and are involved in a relatively new, cutting-edge technology, and that involves some risk. Any economic headwinds could hurt investors' appetite for these sorts of players. These companies depend on a strong economy, as this increases the likelihood that potential customers will spend on their products and services. And investors generally feel more comfortable getting in on growth stocks when the economy is thriving. So, the economic situation in the second half could determine the near-term direction of these players. But right now, there's reason to be optimistic that the U.S. trade talks, along with some better-than-expected economic data, signal better days ahead -- and that the worst-case scenario of a recession and tough times for corporate earnings will be averted. With this in mind, quantum computing stocks could be set to soar in the second half as investors look to get in on the next big technology that could deliver explosive returns. Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and D-Wave Quantum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Will Quantum Computing Stocks Soar in the Second Half? was originally published by The Motley Fool Sign in to access your portfolio
Business Insider
17-06-2025
- Business
- Business Insider
‘Hold Your Horses,' Says Top Investor About D-Wave Stock
D-Wave Quantum (NYSE:QBTS) is riding the wave of quantum computing enthusiasm, an industry built on the promise of unprecedented processing power, even if the road to commercial viability is still a work in progress. But Wall Street rarely waits for certainty. Investors have embraced the hype, and D-Wave stands out as a prime beneficiary, racking up gains of 90% in 2025 and an eye-popping 1,300% over the past year. Confident Investing Starts Here: While other players in the cohort have also been on strong runs, D-Wave's approach differs from what most others are doing. Rather than relying on the 'gate model' of quantum computing, which resembles the way traditional computers operate, they use a technique called quantum annealing. This method is thought to be better suited for tackling complex optimization challenges, like finding the most efficient delivery routes or enhancing manufacturing processes. This, says top investor Michael Wiggins De Oliveira, is what the bull case rests on. The challenge here, though, is proving that D-Wave's quantum computers can effectively solve practical problems. To this end, they're partnering with companies like Ford to improve efficiency in car manufacturing. At the same time, D-Wave has introduced its newest Advantage2 system, offering significant improvements in speed and accuracy. Beyond manufacturing, the tech is gaining interest in fields like blockchain, where it has the potential to greatly reduce energy consumption and enhance machine learning capabilities. 'Essentially,' the 5-star investor goes on to add, 'the point is that it's very early in the story, but there are some tangible signs that point to growing demand.' But the key here for De Oliveira might be that it is 'very early in the story.' Moreover, sales growth over the near term will likely take a bit of a hit. Back in 4Q24, the company had forecasted a major sale for 1Q25. Now that this sale has passed, investors could be wondering what comes next. Currently, over 80% of D-Wave's first-quarter revenue came from sales of its Advantage2 hardware. Unless the company secures another large deal soon, its impressive growth (over 500% year-over-year in Q1) is likely to slow dramatically, dropping to under 30% growth y/y. That's not to say the stock can't climb further. Other past bubbles – clean energy, cannabis, meme stocks – have shown that it is possible. 'With real tech, enterprise traction, and a shot at commercial quantum supremacy, it's not hard to imagine its stock reaching unprecedented heights if momentum kicks in,' De Oliveira went on to say. Still, the real question is whether that's a risk worth taking. At today's valuation, De Oliveira seems to think the answer is no. 'I'm impressed by D-Wave's traction and potential, but I'm not ready to chase the stock at 130x forward sales,' the investor summed up. Accordingly, De Oliveira rates QBTS shares a Hold (i.e., Neutral). (To watch De Oliveira's track record, click here) The Street's analysts, however, unanimously disagree; based on Buys only – 6, in total – the stock claims a Strong Buy consensus rating. That said, the $14.20 average target factors in a one-year slide of 11%. It will be interesting to see whether analysts update their targets shortly. (See QBTS stock forecast) To find good ideas for stocks trading at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that unites all of TipRanks' equity insights.
