Latest news with #Advantage2
Yahoo
a day ago
- Business
- Yahoo
Where Will Rigetti Computing Be in 5 Years?
Quantum computing might be the next technology megatrend after generative AI. Could upstart Rigetti Computing become the Nvidia of this emerging opportunity? 10 stocks we like better than Rigetti Computing › With shares up by over 1,249% over the last 12 months, Rigetti Computing (NASDAQ: RGTI) is an excellent example of the tech sector's millionaire-making potential. The company is helping to pioneer the nascent quantum computing opportunity, and investors are encouraged by a series of technological breakthroughs in the industry. But is Rigetti's recent performance a hype-driven fluke, or an early sign of multi-bagger returns over the next five years? Let's dig deeper to find out. Quantum computing is a branch of computer science that aims to dramatically increase the computational power of machines by replacing their bits (a binary unit of information that can only represent one of two values) with qubits, which can be in many different states at once. If the tech works as intended, it would enable quantum computers to rapidly solve problems that would take a normal computer millions of years. The potential real-world applications are endless. Quantum computers could be helpful in discovering new drugs, chemicals, or high-performance materials. They could also revolutionize logistics by quickly determining which combinations of stops are most efficient on a delivery route. The economic effects of this technology could reach into the trillions, making boatloads of money for early movers like Rigetti. The company aims to monetize this opportunity through a "picks-and-shovels" business model, where it offers quantum computing power to clients via a cloud interface that can be accessed by traditional hardware. A series of recent breakthroughs has led some to believe that mainstream adoption could come sooner than previously expected. In March, a California-based company called D-Wave Quantum published a report claiming that its commercially available Advantage2 quantum supercomputer outperformed Frontier, the world's most powerful supercomputer, on a limited test. This win follows Alphabet's Google's December announcement of its quantum chip, Willow, which offers the potential for greater speeds and error correction during calculations. Both of these news events had a spillover effect on Rigetti's stock price, helping to explain its multi-bagger growth over the last year. However, investors should remember that these companies are Rigetti's direct competitors, and a rising tide won't necessarily lift all boats. In fact, over the long term, Rigetti could find itself overshadowed by these faster-growing and better-capitalized players in the industry. The company's lackluster operating results put this risk in focus. In the first quarter, Rigetti's revenue dropped 52% year over year to $1.47 million. If that wasn't bad enough, its operating loss ballooned from $16.6 million to $21.6 million, mainly due to spiraling research and development costs as it seeks to help pioneer a brand new industry. Investors shouldn't expect the situation to turn around any time soon. CEO Subodh Kulkarni doesn't see his company generating significant commercial sales until three to five years from now. Rigetti's floundering operations stand in stark contrast to alternatives like D-Wave Quantum, which has already started limited commercialization. This Rigetti rival saw its first-quarter revenue jump 500% year over year to $15 million after the sale of its first quantum device to a research institution in Germany. Alphabet is another long-term threat. While quantum won't be a material part of its vast business any time soon, the $2.1 trillion tech giant will have much more cash to pour into research and development, giving it a massive competitive advantage over smaller companies like Rigetti. With a price-to-sales (P/S) ratio of 341, Rigetti's sky-high valuation doesn't seem to account for the significant uncertainty it will face over the next five years. Investors who want to bet on quantum computing should probably look for better options in the market. Before you buy stock in Rigetti Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Rigetti Computing 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 May 19, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy. Where Will Rigetti Computing Be in 5 Years? was originally published by The Motley Fool Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
2 days ago
- Business
- Yahoo
Is D-Wave Quantum a Millionaire-Maker Stock?
Shares in computer upstart D-Wave Quantum have surged in recent weeks. Investors have become increasingly optimistic about quantum computing. The company may still be small, but it's currently growing at an epic clip. 10 stocks we like better than D-Wave Quantum › If you want to become a millionaire in the stock market, look no further than the technology sector. With shares up by a whopping 1,154% over the past 12 months, D-Wave Quantum (NYSE: QBTS) is an excellent example of this sector's wealth-creating potential. That said, volatility is a double-edged sword, as these massive gains often come with significant risks and volatility. Let's explore what the future may bring for this booming stock. Three years ago, the launch of OpenAI's ChatGPT marked the beginning of a new industry called generative AI, which promises to transform the way people interact with information. Now, there are rumblings that a new breakthrough, known as quantum computing, could be on the horizon. Both technologies rely on computer hardware, but that is where most of the similarities end. While generative AI focuses on creating new content based on trained data, quantum computing aims to solve incomprehensibly complex calculations at a rapid rate by using units of information called qubits, which can be in many states at once. If quantum computing proves successful, it could unlock significant efficiencies in drug discovery, materials science, and logistics. According to analysts at McKinsey & Company, the opportunity could be worth between $45 billion and $131 billion by 2040. This long-term potential is driving the excitement around early movers like D-Wave Quantum. Despite launching its initial public offering (IPO) in 2022, D-Wave is actually a relatively old company, founded in 1999 in Vancouver, Canada. It has been backed by notable figures, including Amazon founder Jeff Bezos and In-Q-Tel, the CIA's venture capital firm, which has also supported other strategic tech companies, such as Palantir Technologies. D-Wave is unique because it claims to sell the only commercially available quantum computers on the market. These devices, roughly the size of a walk-in freezer, utilize a process called quantum annealing to find solutions to problems by identifying the lowest energy choice among many possible options -- useful in specialized scenarios. While there is debate about whether D-Wave's system represents "true" generalized quantum computing (like what rivals like Alphabet's Google and IBM are working on), it has earned some recent scientific wins. In May, the company, alongside a team of scientists, announced that D-Wave's Advantage2 computer had managed to solve a problem faster than the Department of Energy's Frontier (the world's fastest supercomputer). This achievement sparked massive interest in D-Wave's stock and could translate to meaningful operational gains for the company. On the surface, D-Wave's growth is astounding. First-quarter revenue jumped 500% year over year to a record of $15 million, driven by the sale of its first Advantage quantum annealing computer system to a major research institution (likely Germany's Forschungszentrum Jülich). Perhaps more importantly, operating losses fell from $17.5 million to $11.3 million, which suggests D-Wave can easily scale into sustainable profitability if it maintains its triple-digit growth rate. Furthermore, with a whopping $304.3 million in cash and equivalents on its balance sheet, the company looks capable of sustaining current losses well into the future. D-Wave looks like it has all the ingredients of a potential millionaire-making stock as it enjoys tremendous growth in a brand-new industry. That said, investors who buy shares should remember that they are betting on a speculative company in an industry that very few people understand. There is no guarantee that research institutions will continue buying D-Wave's quantum annealing systems, and that means the potential for massive gains comes with the potential for significant losses if the technology doesn't live up to expectations. 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 $651,049!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $828,224!* Now, it's worth noting Stock Advisor's total average return is 979% — a market-crushing outperformance compared to 171% 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 May 19, 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. Will Ebiefung has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, and Palantir Technologies. The Motley Fool has a disclosure policy. Is D-Wave Quantum a Millionaire-Maker Stock? was originally published by The Motley Fool
Business Insider
7 days ago
- Business
- Business Insider
‘Now's the Time to Exit,' Says Top Investor About D-Wave Stock
It has been a month to remember for D-Wave Quantum (NYSE:QBTS), whose share price has shot up by some 154% since the beginning of May. Confident Investing Starts Here: The surging share price was powered by a positive Q1 2025 earnings report, during which the company reported revenues that increased by over 500% both sequentially and year-over-year. The company's $15 million in revenues outshot expectations by $4.5 million, while EPS of -$0.02 also surpassed projections by $0.03. A further boost came last week, when D-Wave announced that its Advantage2, the company's sixth-generation quantum computer, has become available for purchase. Does this mean that the company is on the verge of rapid commercialization? Not everyone's buying the hype. One highly ranked investor, known as Tech Stock Pros, remains cautious, arguing that the Q1 surge was exceptional and unlikely to be repeated in the near term. 'The revenue growth this quarter is on a one-time sale rather than commercial/enterprise adoption,' explains TSP, who is among the top 3% of TipRanks' stock pros. The investor points out that bookings in Q1 were actually down 64% compared to last year, casting doubt on whether the blowout quarter is a sign of things to come or just a quantum blip. 'This is far from mainstream and not yet seeing enterprise adoption, which is what would support sustainable revenue growth,' argues TSP, adding that the decline in bookings is a 'big fat red flag.' The investor does believe that the future is bright for QBTS, noting that the company's Quantum Computing-as-a-Service has already attracted over 100 customers, the majority of whom are from the private sector. Still, the field is still in its theoretical stages, meaning that the near-term prognosis is not so rosy. With QBTS' valuation of 161x its sales now towering over the sector median of 3x, it is pretty clear to TSP that the recent 'joyride is over' and the time has come to exit. Against this backdrop, the investor rates QBTS shares a Strong Sell. (To watch Tech Stock Pros' track record, click here) Meanwhile, Wall Street's stance appears conflicted. While QBTS holds a Strong Buy consensus rating based on 6 Buy recommendations, the average 12-month price target of $13 implies a ~26% downside from current levels. This disconnect suggests that analysts may soon need to revisit either their bullish ratings or the price targets they've issued. (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
7 days ago
- Business
- Yahoo
D-Wave or Rigetti: Which Quantum Hardware Stock Should You Choose?
D-Wave Quantum QBTS and Rigetti Computing RGTI, both with their "hardware-first" approach in quantum computing, have been in the spotlight in recent times. Both companies recently shared their first-quarter 2025 updates. D-Wave Quantum posted a 61% jump in first-quarter commercial revenues and demonstrated its 360-qubit Advantage2 prototype, signaling momentum in hybrid quantum-classical systems. Rigetti Computing, on the other hand, has been gaining from research and government-backed projects. The company advanced to Stage A of DARPA's Quantum Benchmarking Initiative, secured a $5.48M AFOSR grant to improve chip fabrication, and is part of several UK Quantum Mission awards to enhance error correction. As these two companies pursue different paths, one commercial and one research-driven, it's an ideal time for investors to take a closer look at long-term positioning in the quantum space. Growing Hardware Sales Drive Margins for QBTS: D-Wave Quantum reported first-quarter 2025 revenues of $15 million, a staggering 509% increase from $2.5 million in the year-ago period. This leap was primarily driven by the sale of the Advantage2 annealing quantum system to Julich Supercomputing Center, which contributed approximately $12.6 million to the top line. The company also demonstrated strong operational leverage. GAAP gross profit soared to $13.9 million from just $1.7 million a year earlier, while non-GAAP gross profit reached $14 million compared to $1.9 million in the prior-year quarter. These gains elevated D-Wave Quantum's GAAP gross margin to 92.5%, up from 67.3%, and non-GAAP gross margin to 93.6%, up from 76.6%. Net Loss and Adjusted EBITDA Loss Significantly Narrow: D-Wave Quantum posted a first-quarter 2025 net loss of $5.4 million, or 2 cents per share, its lowest since going public in 2022 and a sharp improvement from a loss of $17.3 million (11 cents per share) in the year-ago quarter. Adjusted EBITDA loss narrowed by 53% year over year to $6.1 million in the last-reported quarter. These improvements reflect greater operational efficiency and position D-Wave on a clear path toward profitability with less capital than many of its quantum computing peers. Robust Cash Position With No Short-term Debt: At the end of March 2025, D-Wave had $304.3 million in cash and also repaid its secured term loan in the first quarter of 2024. The company's debt-to-capital ratio dropped to 12.9%, down from 32.7% in the fourth quarter of 2024, highlighting a significantly improved capital structure. The company also raised $146.2 million through equity in the first quarter and retained $37.8 million in issuance capacity under its equity line of credit. This strong liquidity position provides strategic flexibility and supports ongoing investments in R&D and go-to-market initiatives. Image Source: Zacks Investment Research Selection for DARPA's Quantum Benchmarking Initiative: Rigetti was selected for Phase A of DARPA's Quantum Benchmarking Initiative, standing out among over 100 applicants as one of only three superconducting quantum companies chosen, alongside International Business Machines IBM and Hewlett Packard HPE. The six-month, $1 million award will support Rigetti's work on a scalable quantum computing concept that combines its multi-chip architecture with error correction codes. Success in this phase could lead to larger future funding and greater industry recognition, reinforcing Rigetti's role in building next-generation, fault-tolerant quantum systems.$5.48M AFOSR Award to Advance Chip Fabrication: Rigetti secured a $5.48 million award from the Air Force Office of Scientific Research (AFOSR) to develop its Alternating-Bias Assisted Annealing (ABAA) chip fabrication technology. Leading a consortium with top universities and labs, Rigetti aims to reduce defects in superconducting qubits and improve chip performance. This work is key to building more reliable and scalable quantum processors, strengthening Rigetti's position in next-generation quantum hardware.$35M Strategic Investment by Quanta Computer Boosts Liquidity: Quanta Computer's $35 million equity investment at $11.59 per share boosts Rigetti's cash position to $237.7 million as of April 30, 2025. This funding strengthens Rigetti's balance sheet, extends its operating runway, and enables accelerated R&D without near-term dilution. Image Source: Zacks Investment Research Year to date, shares of D-Wave Quantum have surged 123.8%, handily outperforming the broader Internet Software industry's 4.9% gain and the S&P 500's 1.3% dip. Contrastingly, Rigetti Computing underperformed all three with an 8.2% decline in its stock price during the same period. Rigetti has underperformed year to date due to a steep 51% year-over-year decline in first-quarter revenues, which were also below expectations, highlighting weak demand for its quantum solutions despite a headline profit. Image Source: Zacks Investment Research D-Wave Quantum, a Zacks Rank #2 (Buy) stock, presents a stronger investment case at this moment than Rigetti Computing, a Zacks Rank #4 (Sell) stock. D-Wave recorded a 56% year-over-year revenue jump in the first quarter, record bookings and rising enterprise adoption, driven by its hybrid solver services and momentum toward breakeven. In contrast, Rigetti reported a 51% year-over-year revenue decline and projected flat-to-lower revenues for the full year, reflecting ongoing customer transition and slower-than-expected uptake of its quantum hardware. While RGTI has secured significant government and strategic funding, including DARPA and AFOSR grants and a $35M investment from Quanta Computer, its current financial performance lags materially. As such, QBTS' superior growth trajectory, commercialization pace and strong customer adoption position it as the better buy right now. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report International Business Machines Corporation (IBM) : Free Stock Analysis Report Hewlett Packard Enterprise Company (HPE) : Free Stock Analysis Report Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Sign in to access your portfolio
Yahoo
27-05-2025
- Business
- Yahoo
D-Wave Says U.S. Behind in Quantum Annealing
D-Wave Quantum (NYSE:QBTS) dips over 7% despite rolling out its Advantage2 system and warning the U.S. trails rivals in quantum annealing. QBTS surged over 50% in the past five trading sessionsand is up 124% year to dateafter CEO Alan Baratz pointed out that D-Wave's quantum annealing approach, unlike gate-based systems from IBM (IBM), Alphabet (NASDAQ:GOOG), IonQ (NYSE:IONQ) and Rigetti (NASDAQ:RGTI), is already powering real-world use cases. Warning! GuruFocus has detected 5 Warning Signs with QBTS. D-Wave's latest Advantage2 machine is live in 40+ countries via its cloud, and more than 130 customers70 of them commercial, including 25 Forbes Global companiesare experimenting with applications from AI-driven drug discovery at Japan Tobacco to logistics optimization at Los Alamos National Lab. Baratz argued in a Seeking Alpha interview that the U.S. government is behind other nations on annealing, missing out on near-term benefits like hurricane-evacuation routing and port-throughput planning. Chief Development Officer Trevor Lanting added that each new annealing generation delivers foundational new use cases through higher qubit coherence and lower energy consumption versus classical systems. Investors should care because Advantage2's commercial traction and D-Wave's unique tech moat could translate into faster revenue growth and wider adoptionif the company can convert pilot projects into paid deployments. With geopolitical rivals accelerating their own quantum programs, markets will be watching D-Wave's next quarterly update for signs of government contracts or major enterprise agreements. This article first appeared on GuruFocus. Sign in to access your portfolio
