Latest news with #DefianceQuantumETF
Globe and Mail
14-05-2025
- Business
- Globe and Mail
2 Top-Rated Quantum Computing Stocks to Buy for May 2025
In recent years, quantum computing has quietly emerged into the mainstream, with the market set to explode from $1.2 billion in 2024 to $12.6 billion by 2032, expanding at a 34.8% compound annual growth rate (CAGR). The growth is reflected in the performance of Defiance Quantum ETF (QTUM), which has gained 40.3% over the past year, outperforming the S&P 500 Index's ($SPX) 13.1% rise. Amid this transformation, (AMZN) and D-Wave Quantum (QBTS) have emerged as strong investment opportunities. Their recent performance indicates growing confidence in the integration of artificial intelligence and quantum computing into everyday technologies. For forward-thinking investors, this could represent a unique 'ground-floor' opportunity in what many see as the defining innovation of the 21st century. Quantum Computing Stock #1: Amazon Headquartered in Seattle, Washington, the e-commerce giant has long outgrown its retail roots. Today, with a massive $2.2 trillion market cap, (AMZN) holds a dominant seat in the cloud computing space through Amazon Web Services and remains deeply entrenched in households through its Alexa-powered Echo devices. Over the past month, AMZN stock has rallied 15%. AMZN currently trades at 30.6 times forward earnings and 3.2 times sales, commanding a premium over industry peers. Yet, stacked against its own five-year averages, these valuations hint at a hidden bargain. The May 1 earnings report unveiled a strong first-quarter 2025 performance that came in ahead of expectations. Total net sales reached $155.7 billion, marking an annual increase of nearly 8.6%, beating by $580 million. Operating income stood at $18.4 billion, up 20.2% from the year-ago figure. Moreover, EPS rose 62.2% annually to $1.59 and beat forecasts by $0.23. Moreover, Amazon Web Services (AWS) has made significant strides in quantum computing. In early 2025, AWS launched its Ocelot quantum chip, reducing error correction costs by 90%, positioning Amazon as a leader in scalable quantum computing and boosting its AWS growth. Looking ahead, Amazon expects Q2 net sales between $159 billion and $164 billion, projecting 7% to 11% year-over-year growth. Meanwhile, analysts anticipate Q2 2025 EPS to grow 8.9% to $1.34. For 2025, EPS is forecast to rise 13.9% year over year to $6.30. Analyst sentiment skews overwhelmingly bullish with an overall rating of 'Strong Buy.' Out of 53 analysts, 46 issued a 'Strong Buy,' five suggested a 'Moderate Buy,' and two recommended 'Hold.' The average price target of $241.46 represents potential upside of 14%, while the Street-high target of $305 signals a possible surge of 45% from current levels. Quantum Computing Stock #2: D-Wave Quantum D-Wave Quantum (QBTS), based in Palo Alto, California, provides end-to-end quantum computing solutions, including systems, cloud services, application development tools, and professional services. The company is currently valued at a market cap of $3.1 billion. QBTS stock has delivered a 685% gain over the past 52 weeks and shares are up another 48% in the past month. D-Wave reported its first-quarter results on May 8. Revenue surged an impressive 500% year-over-year to $15 million, and the company reported record GAAP gross profit of $13.9 million. Its net loss also narrowed dramatically to $5.4 million from $17.3 million in the year-ago period. Major quantum computing achievements in the first quarter included a published scientific paper demonstrating quantum supremacy, the delivery of its first quantum Advantage system, and various key business relationships formed with customers like Japan Tobacco and Ford Otosan. For the second quarter, analysts are calling for losses per share to improve 40% to to $0.06. For the full year, losses are expected to improve 72% to $0.21. The stock has earned an overall 'Strong Buy' rating. Out of six analysts covering the stock, five have backed it with a 'Strong Buy,' while one maintains a more cautious 'Moderate Buy.' The average price target of $11.33 represents minimal upside from its current price. However, the Street-high target of $13 points to a possible rally of more than 20% from current levels.
Yahoo
23-04-2025
- Business
- Yahoo
3 Reasons to Buy This Artificial Intelligence (AI) Quantum Computing Stock on the Dip
Investors have spent the past couple of years acquainting themselves with artificial intelligence (AI) and quantum computing. These emerging technologies could represent the most significant leaps forward for humankind since the internet decades ago. Of course, such groundbreaking technologies can be lucrative investment opportunities. The Defiance Quantum ETF (NASDAQ: QTUM) could be a smart way to add exposure to artificial intelligence and quantum computing to your portfolio. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » The exchange-traded fund has plunged nearly 20% from its high amid the market's recent volatility, one of its steepest declines since it began trading in 2018. Here are three reasons to buy this AI quantum computing stock on the dip. It's impossible to predict what AI and quantum computers could make possible over the coming decades. You might see things you only thought were possible in science fiction. Humanoid robotics is already on the way, which reminds me of a famous action movie from the 1980s featuring a particular cyborg sent from the future. Plus, AI and quantum computing could eventually be worth trillions of dollars. Research from McKinsey estimates AI could generate $23 trillion in annual economic value by 2040. Meanwhile, quantum computing could start slowly. Technology experts have speculated that practical quantum computers could still be several years away. However, they could be a game changer once they get here. Boston Consulting Group's report on quantum computing forecasts that quantum computers will create $5 billion to $10 billion in annual economic value by 2030, but projects this to increase to $450 billion to $850 billion by 2040. Time will tell how accurate such estimates and timelines are, but the financial and real-world potential is exciting, to put it mildly. AI and quantum computing present quite a challenge for investors. Most individuals, let alone professional investors, aren't experts in these complex fields. Therefore, picking individual winners could prove extremely challenging. That's a great reason to invest in a diversified instrument such as the Defiance Quantum ETF. It represents a global basket of 70 companies involved with AI and quantum computing -- someone else did the hard work of picking high-quality stocks in these advanced technology industries. The fund's top holdings include: Company ETF Weight D-wave Quantum 3.31% Orange 2.37% NEC Corp 2.17% Palantir Technologies 2.15% Koninklijke Kpn 2.05% Alibaba Group 2.03% Nokia 1.93% Northrop Grumman 1.89% Rigetti Computing 1.87% RTX Corp 1.83% Data source: Defiance ETFs. Since AI and quantum computing have immense potential but are still so unpredictable, casting a wide net is a wise strategy. It could be a case of the 80-20 rule, where a select few companies produce a majority of the value in AI and quantum computing. The ETF's construction spans various companies, industries, and countries, reducing risk by limiting the top holding to just 3.31% of the fund's total assets. Additionally, the expense ratio (0.4%) appears reasonable, considering the simplicity and diversification you gain in return. Many quantum computing stocks have been highly volatile, and investors who bought at the wrong time have endured steep losses. The Defiance Quantum ETF has been around since 2018, and has outperformed the Nasdaq Composite, a prominent technology-leaning U.S. stock market index, since about 2021: Past performance does not guarantee future results, but it demonstrates the effectiveness of a diverse approach to speculative industries like AI and quantum computing. I don't see why the Defiance Quantum ETF can't continue to perform well as these technologies mature. Before you buy stock in ETF Series Solutions - Defiance Quantum ETF, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and ETF Series Solutions - Defiance Quantum ETF 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 $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $606,106!* Now, it's worth noting Stock Advisor's total average return is 811% — a market-crushing outperformance compared to 153% 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 April 21, 2025 Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Alibaba Group and RTX. The Motley Fool has a disclosure policy. 3 Reasons to Buy This Artificial Intelligence (AI) Quantum Computing Stock on the Dip was originally published by The Motley Fool
Globe and Mail
30-03-2025
- Business
- Globe and Mail
Down 57% From All-Time Highs, Is This Quantum Computing Stock the Bargain of the Decade?
Over the past year, a new subsector of artificial intelligence (AI) stocks started receiving intense investment interest. As a result, these companies saw parabolic rises in their stock price seemingly out of nowhere. What was the catalyst fueling the hype around these emerging AI players? The basic explanation is that quantum computing started gaining investment traction within the broader AI narrative. Many big tech companies, including Amazon, Microsoft, Alphabet, and Nvidia, are developing quantum computing chips or are involved in quantum computing partnerships. Part of the growth story for these stocks is investor interest in these efforts. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » While investors appear to be captivated by the idea of investing in quantum computing, some of them are looking beyond the usual "Magnificent Seven" stocks. That led them to look at pure-play quantum computing companies such as IonQ (NYSE: IONQ), D-Wave Quantum (NYSE: QBTS), and Rigetti Computing (NASDAQ: RGTI). In the case of Rigetti stock, it has soared by as much as 2,750% over the last six months. But recent short-term worries about the economy as well as specific worries raised about the development timeline for AI, and more specifically quantum computing, sparked a pullback for some of these stocks. As of the market close on March 27, shares of Rigetti are trading down by 57% from all-time highs. Is this an opportunity to take advantage of broader selling activity among stocks in the Nasdaq Composite to buy stock in a great company at a discount? Or has Rigetti had its moment? Analyzing Rigetti's stock price movement In the top chart pictured below, investors can see Rigetti's stock price movement over the last year. Up until October, Rigetti was flying under the radar as an unknown penny stock. Data by YCharts. The bottom chart shows the price action for a quantum computing-themed exchange-traded fund (ETF). Interestingly, the Defiance Quantum ETF (NASDAQ: QTUM) saw a similar surge to that of Rigetti around October of last year. It's a clear indication that the idea of investing in quantum computing stocks started to land on more radars toward the end of 2024. While Rigetti stock saw some outsized price appreciation, the stock's rise was short-lived. For most of 2025, shares of Rigetti have been on the decline. Let's analyze Rigetti's underlying business and valuation trends to assess if now is an opportunity to buy the dip. Is the sell-off in Rigetti Computing a buying opportunity? With a share price of roughly $8.62, Rigetti stock looks cheap. However, smart investors know that looking at the share price doesn't provide you with a real understanding of how much a company is actually worth. As of this writing, Rigetti Computing has a market capitalization of $2.43 billion. This is significantly below that of IonQ, and relatively in line with D-Wave Quantum. Given these dynamics, Rigetti stock may look like a better buy when compared to its peers. But the market cap on its own is also not a very good indicator of whether a stock is a bargain. Data by YCharts. Some other metrics to consider to better judge Rigetti's valuation involve looking at the company's top- and bottom-line financials. Over the last 12 months, Rigetti Computing generated $10.8 million in revenue and had a net loss of $201 million. This shows the company is making money (some companies out there don't even accomplish this), but that its expenses are bigger than its income. A negative balance sheet isn't good, but it also isn't unusual for a growth stock. Considering the business isn't anywhere close to profitable at the moment, an alternate way to determine if Rigetti stock is a bargain is to use a metric that analyzes its sales. Given trailing-12-month sales of $10.8 million and a market cap of $2.43 billion, Rigetti is trading at a price-to-sales (P/S) ratio of roughly 225. Determining a bargain P/S ratio depends largely on the company and the industry. Tech stocks and growth stocks tend to sport higher P/S ratios than average (which is generally below 5), but once a P/S starts going above 25 or so, it really shouldn't be considered a bargain. A high P/S generally offers a clear indication that a stock will take a long time to justify the initial purchase price. Rigetti Computing's 225 P/S suggests that, even after a 57% share price decline, the stock has heavy valuation inflation. Rigetti is beginning to fall out of favor with investors as they see indications that it has a long way to go before its business really scales. Furthermore, given how much cash Rigetti is burning in its effort to grow, I suspect many investors are seeking safer alternatives, especially given the uncertainty in the stock market right now. To put it plainly, I think Rigetti Computing stock is overvalued and very much not trading for a bargain right now -- despite the appearance of a depressed share price. Don't miss this second chance at a potentially lucrative opportunity Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon. Continue » *Stock Advisor returns as of March 24, 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, 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.
Yahoo
30-03-2025
- Business
- Yahoo
Down 57% From All-Time Highs, Is This Quantum Computing Stock the Bargain of the Decade?
Over the past year, a new subsector of artificial intelligence (AI) stocks started receiving intense investment interest. As a result, these companies saw parabolic rises in their stock price seemingly out of nowhere. What was the catalyst fueling the hype around these emerging AI players? The basic explanation is that quantum computing started gaining investment traction within the broader AI narrative. Many big tech companies, including Amazon, Microsoft, Alphabet, and Nvidia, are developing quantum computing chips or are involved in quantum computing partnerships. Part of the growth story for these stocks is investor interest in these efforts. While investors appear to be captivated by the idea of investing in quantum computing, some of them are looking beyond the usual "Magnificent Seven" stocks. That led them to look at pure-play quantum computing companies such as IonQ (NYSE: IONQ), D-Wave Quantum (NYSE: QBTS), and Rigetti Computing (NASDAQ: RGTI). In the case of Rigetti stock, it has soared by as much as 2,750% over the last six months. But recent short-term worries about the economy as well as specific worries raised about the development timeline for AI, and more specifically quantum computing, sparked a pullback for some of these stocks. As of the market close on March 27, shares of Rigetti are trading down by 57% from all-time highs. Is this an opportunity to take advantage of broader selling activity among stocks in the Nasdaq Composite to buy stock in a great company at a discount? Or has Rigetti had its moment? In the top chart pictured below, investors can see Rigetti's stock price movement over the last year. Up until October, Rigetti was flying under the radar as an unknown penny stock. The bottom chart shows the price action for a quantum computing-themed exchange-traded fund (ETF). Interestingly, the Defiance Quantum ETF (NASDAQ: QTUM) saw a similar surge to that of Rigetti around October of last year. It's a clear indication that the idea of investing in quantum computing stocks started to land on more radars toward the end of 2024. While Rigetti stock saw some outsized price appreciation, the stock's rise was short-lived. For most of 2025, shares of Rigetti have been on the decline. Let's analyze Rigetti's underlying business and valuation trends to assess if now is an opportunity to buy the dip. With a share price of roughly $8.62, Rigetti stock looks cheap. However, smart investors know that looking at the share price doesn't provide you with a real understanding of how much a company is actually worth. As of this writing, Rigetti Computing has a market capitalization of $2.43 billion. This is significantly below that of IonQ, and relatively in line with D-Wave Quantum. Given these dynamics, Rigetti stock may look like a better buy when compared to its peers. But the market cap on its own is also not a very good indicator of whether a stock is a bargain. Some other metrics to consider to better judge Rigetti's valuation involve looking at the company's top- and bottom-line financials. Over the last 12 months, Rigetti Computing generated $10.8 million in revenue and had a net loss of $201 million. This shows the company is making money (some companies out there don't even accomplish this), but that its expenses are bigger than its income. A negative balance sheet isn't good, but it also isn't unusual for a growth stock. Considering the business isn't anywhere close to profitable at the moment, an alternate way to determine if Rigetti stock is a bargain is to use a metric that analyzes its sales. Given trailing-12-month sales of $10.8 million and a market cap of $2.43 billion, Rigetti is trading at a price-to-sales (P/S) ratio of roughly 225. Determining a bargain P/S ratio depends largely on the company and the industry. Tech stocks and growth stocks tend to sport higher P/S ratios than average (which is generally below 5), but once a P/S starts going above 25 or so, it really shouldn't be considered a bargain. A high P/S generally offers a clear indication that a stock will take a long time to justify the initial purchase price. Rigetti Computing's 225 P/S suggests that, even after a 57% share price decline, the stock has heavy valuation inflation. Rigetti is beginning to fall out of favor with investors as they see indications that it has a long way to go before its business really scales. Furthermore, given how much cash Rigetti is burning in its effort to grow, I suspect many investors are seeking safer alternatives, especially given the uncertainty in the stock market right now. To put it plainly, I think Rigetti Computing stock is overvalued and very much not trading for a bargain right now -- despite the appearance of a depressed share price. Ever feel like you missed the boat in buying the most successful stocks? Then you'll want to hear this. On rare occasions, our expert team of analysts issues a 'Double Down' stock recommendation for companies that they think are about to pop. If you're worried you've already missed your chance to invest, now is the best time to buy before it's too late. And the numbers speak for themselves: Nvidia: if you invested $1,000 when we doubled down in 2009, you'd have $284,402!* Apple: if you invested $1,000 when we doubled down in 2008, you'd have $41,312!* Netflix: if you invested $1,000 when we doubled down in 2004, you'd have $503,617!* Right now, we're issuing 'Double Down' alerts for three incredible companies, and there may not be another chance like this anytime soon.*Stock Advisor returns as of March 24, 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, 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. Down 57% From All-Time Highs, Is This Quantum Computing Stock the Bargain of the Decade? was originally published by The Motley Fool Sign in to access your portfolio
Los Angeles Times
13-03-2025
- Business
- Los Angeles Times
Opinion: Quantum computing investing could redefine tech and financial markets
Quantum computing is no longer just a futuristic concept; it is becoming an emerging sector within the financial markets, attracting significant investments from venture capital, public markets and government initiatives. This interest is creating new opportunities for investors to tap into an industry that could redefine technology as well as financial markets. Quantum computing ETFs on the rise A main way investors are gaining exposure to this field is through Exchange-Traded Funds focused on quantum computing. The Defiance Quantum ETF (QTUM), for example, has experienced growth over the past year. As of March 12, QTUM trades at $76. At the end of last year, on December 27, 2024, QTUM traded at $83.51, a 53.74% increase over the previous 12 months. This surge highlights the growing confidence and interest in quantum-related assets by investors. The Defiance Quantum ETF tracks companies developing and advancing quantum computing technologies. This ETF includes not only startups but also established tech giants like IBM, Google and Microsoft, which are heavily investing in quantum research. The market outlook and projections Studies predict the quantum computing market could surpass $10 billion by 2030, from advances in technology and increasing commercial applications. According to a December 2024 report by Metatech Insights, the global quantum computing market is valued at $1.13 billion and is projected to reach $18.12 billion by 2035. This upward trend suggests a large investor appetite. Tech giants such as IBM and Google are also pushing the boundaries of quantum processors. According to Scientific American in 2023, IBM 'unveiled the first quantum computer with more than 1,000 qubits — the equivalent of the digital bits in an ordinary computer.' These breakthroughs are expected to accelerate real-world applications, making quantum computing more viable for industries like finance, pharmaceuticals and materials science. Financial market disruption and opportunity Quantum computing has the potential to disrupt financial markets significantly. According to a 2024 Bank of England report, quantum computers could transform financial modeling, risk analysis and encryption techniques. This transformation presents both opportunities and risks. Investment firms are already exploring how quantum technologies can optimize trading algorithms and hedge against market volatility. Cloud-based quantum services: Lowering barriers for investors Another avenue for financial exposure is through cloud-based quantum services. Companies such as Amazon Web Services, Microsoft Azure, and Google Cloud are providing businesses access to quantum processors without the need to invest in hardware directly. This shift lowers entry barriers, allowing broader adoption and generating new revenue streams for investors holding shares in these tech giants. The role of government investments Governments including China, the United States and the United Kingdom, have invested in quantum initiatives to ensure they remain competitive. This public-sector funding often catalyzes private investment, further driving market growth. Government contracts and partnerships also provide stability and long-term growth prospects for quantum-focused firms Risks and challenges Despite the excitement, quantum computing still faces significant challenges, such as hardware stability, error correction and scalability. Investors should remain cautious and consider the speculative nature of many quantum stocks. While the industry holds immense promise, it may take years before quantum computers achieve consistent, practical applications. Should you invest? Personally, I would definitely invest in quantum computing through ETFs like the Defiance Quantum ETF (QTUM) because it provides exposure to multiple companies at different stages of development. This approach takes away the risk of betting on a single company while allowing the investor to benefit from the overall growth of the sector. Additionally, I would look at tech giants with established quantum divisions like Alphabet, and maybe invest in dividends from their company specifically as well. Conclusion Quantum computing represents one of the most exciting frontiers in technology and finance. With ETFs like the Defiance Quantum ETF gaining traction and venture capital pouring into the sector, investors have various avenues to participate in this transformative field. As advancements continue, those who strategically invest in quantum computing could reap substantial rewards, potentially reshaping entire industries in the process. Related
