Latest news with #Ocelot
Yahoo
06-08-2025
- Business
- Yahoo
Amazon's $36M Bet on Quantum Computing: What Investors Need to Know
Quantum computing is no longer science fiction. It's shaping up to be the next frontier in both national defense and commercial innovation. And now, Wall Street is finally starting to price that in. Amazon's (AMZN) new $36.7 million stake in IonQ (IONQ), the U.S. Air Force's record-breaking contract, and state-level legislation in Texas are signaling a major shift in sentiment. And with earnings on deck for several major players, it's time to understand what this means — and how you can prepare. More News from Barchart Stock Market Warning: The Most Dangerous Month of the Year for VIX Spikes This Option Trade on Trade Desk Stock Has a Profit Zone Between $65 and $100 Unusual Options Volume? Why Only BP Stock Passed the Quantitative Sniff Test Our exclusive Barchart Brief newsletter is your FREE midday guide to what's moving stocks, sectors, and investor sentiment - delivered right when you need the info most. Subscribe today! The Big Tech Quantum Push: From Chips to Capital Amazon's quantum ambitions have been no secret, but their latest moves speak volumes. After unveiling their 'Ocelot' chip — a breakthrough in reducing error correction for quantum systems — Amazon just disclosed a $36.7 million stake in IonQ. This bold capital allocation, made in a recent 13F filing, sent shares of IonQ surging after hours. But even more important is what this tells us about institutional confidence. Pro Tip: Check IonQ's expected move and gamma exposure ahead of earnings tonight, Aug. 6, to gauge potential volatility and price targets based on options activity. Government Backing = Real Momentum The U.S. Air Force awarded IonQ a $54.5 million contract, the largest government quantum contract of 2024, to help develop scalable, deployable quantum systems. This is a clear signal that quantum computing is entering a new phase of real-world integration. Meanwhile, Texas just passed legislation establishing itself as a hub for quantum innovation. That means state-level support, academic partnerships, and a whole new playing field for investors focused on emerging tech. Earnings Season: Your Quantum Watchlist All of this is happening right as key companies like IonQ, Rigetti (RGTI), and D-Wave Quantum (QBTS) are preparing to report earnings. These reports are crucial for evaluating commercial progress, technical milestones, and adoption timelines. IonQ is accelerating its roadmap toward fault-tolerant quantum computing, targeting over 80,000 logical qubits by 2030. Rigetti just achieved 99.5% fidelity on a 36-qubit system and plans to launch officially on August 15. And D-Wave continues refining its hybrid quantum/classical architecture, positioning for government and enterprise contracts. Track key indicators before earnings using Barchart's: Expected Move Tool Gamma Exposure Put/Call Ratios Action Plan for Investors Save Barchart's curated Quantum Computing Watchlist to track the industry. Use RSI and Top Trade Alerts to identify entry points or hedge positions. Follow institutional activity using Barchart's options flow. Watch the full reel to find out what's happening in quantum: Plus, turn on notifications for @BarchartOfficial on YouTube to stay updated on market coverage with educational content and live shows. On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Business Insider
06-08-2025
- Business
- Business Insider
IONQ Stock Jumps as Amazon Discloses $36.7M Stake Ahead of IonQ's Q2 Results
Shares of IonQ (IONQ) jumped over 7% in after-hours trading yesterday after Amazon (AMZN) disclosed a $36.70 million stake in the quantum computing company. IONQ's stock had gained 5.4% during the regular trading session as investors anticipated its second-quarter results, scheduled for release after the markets close on August 6. Wall Street expects IonQ to report a diluted loss per share of $0.29 on sales of $17.23 million. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Amazon's significant investment in IonQ reflects the tech giant's strong conviction in quantum computing technology. After competing for dominance in artificial intelligence (AI), Amazon now seems to be preparing for leadership in the next major technological wave. According to a Bank of America strategist, quantum computing could reach practical use by 2033 and may ultimately have a greater impact on global markets than AI. Why Did Amazon Invest in IonQ? A 13F regulatory filing yesterday shows that the e-commerce giant purchased 854,207 shares of IonQ as of June 30, 2025. This stake totals $36.70 million based on the closing price of $42.97 on June 30. IONQ's stake is a new addition to Amazon's holdings, which also include stakes in AMD (AMD), Marvell Technology (MRVL), Rivian (RIVN), and Vital Farms (VITL). IonQ excels in trapped-ion quantum computing, which results in higher fidelity, lower error rates, and more reliable quantum operations compared to other qubit types offered by rivals such as D-Wave Computing (QBTS) and Rigetti (RGTI). IonQ's systems such as IonQ Forte and Forte Enterprise are already available on Amazon Braket, Amazon Web Services' (AWS) quantum cloud service platform. These tools are designed to achieve high-fidelity (accurate and reliable) operations in the fields of drug discovery and climate modeling. Amazon has also developed the Ocelot chip, which aims to reduce quantum error correction costs by 90%, making quantum chips five times cheaper than current methods and helping make practical quantum computing possible up to five years sooner. With its investment in IonQ, Amazon seeks to expand its presence in both the quantum hardware and cloud service markets. Is IonQ Stock a Good Buy? Analysts are highly optimistic about IonQ's long-term stock outlook. On TipRanks, IONQ stock has a Strong Buy consensus rating based on six Buys and one Hold rating. The average IonQ price target of $49.17 implies 17% upside potential from current levels. Over the past year, IONQ stock has surged more than 482%.
Yahoo
15-07-2025
- Business
- Yahoo
Warren Buffett Is Invested in These Three Magnificent Quantum Computing Stocks. Here's the Best of the Bunch.
Berkshire Hathaway's most direct quantum computing position is through Amazon. Buffett also has positions in Microsoft and Alphabet through New England Asset Management. All three companies have diverse ecosystems that stand to benefit from other areas of AI, too. 10 stocks we like better than Amazon › When it comes to portfolio management, investors will often hear hedge fund managers and Wall Street personalities talk about the importance of a diversified portfolio. For nearly six decades, Warren Buffett helped transform Berkshire Hathaway into an investment powerhouse thanks in large part to his ability to identify quality companies trading for reasonable prices across a variety of different industries. One industry that Buffett has often avoided, however, is technology. While Berkshire has owned (and still owns) a number of technology or tech-adjacent businesses, it's not a sector that Buffett prioritizes. For these reasons, you might be surprised to learn that the "Oracle of Omaha" has any exposure whatsoever to an emerging pocket of the artificial intelligence (AI) realm called quantum computing. Let's explore three quantum computing stocks that Buffett is invested in. From there, I'll detail why these positions are important and which one I think is the best of the bunch. Berkshire Hathaway only directly owns one quantum computing stock through its position in Amazon (NASDAQ: AMZN). However, one of Berkshire's subsidiaries is an investment management firm called New England Asset Management (NEAM). NEAM can be thought of as Buffett's "secret" portfolio -- as positions owned by NEAM are indirectly affiliated with Buffett, too. According to its most recent 13F filing, NEAM holds Microsoft and Alphabet -- both of which are designing their own quantum chips called Majorana and Willow. As I alluded to above, technology stocks are not high on Buffett's priority list. Berkshire's position in Amazon is worth roughly $2 billion at current market prices. This equates to less than 1% of the portfolio's total value. In addition, NEAM's combined positions in Microsoft and Alphabet also make up less than 1% of its holdings. Among the three "Magnificent Seven" stocks above, Amazon is my top pick. While Amazon's Ocelot chip will rival those developed by its peers, I see several additional reasons to own the stock. According to data from CloudZero, the company's cloud platform -- Amazon Web Services (AWS) -- held 29% market share at the end of the first quarter. This is the highest in the industry, placing Amazon well ahead of Microsoft Azure and Google Cloud Platform. One way that Amazon has helped supercharge growth across the AWS business is through its strategic partnership with Anthropic. Anthropic's generative AI models have become tightly integrated throughout the AWS ecosystem, and have helped bring in a new wave of revenue acceleration and profit margin expansion for the business. To be fair, Microsoft Azure has made serious ground on AWS over the last couple of years thanks to its own partnership with ChatGPT maker OpenAI. However, OpenAI recently signed a major cloud computing deal with Google. In addition, OpenAI has also been rumored to be strengthening its ties with Oracle given both companies' involvement in the $500 billion AI infrastructure initiative, Project Stargate. To me, these deals signal that OpenAI may be distancing itself from Microsoft -- which calls into question how much value it will continue adding to Azure in the long run. Beyond the cloud, Amazon has other opportunities to integrate AI into its ecosystem. An important use case could be to complement its warehouse and logistics operations through AI robotics. Alphabet's dominance in internet search could be threatened by the rise of large language models over time. Meanwhile, the company faces rising competition -- primarily from Tesla -- in the autonomous vehicle space. Although Microsoft and Alphabet also have diverse ecosystems, I think Amazon's overall business is in the least vulnerable position. One potential drawback regarding an investment in Amazon right now revolves around valuation. With a forward price-to-earnings (P/E) ratio of 36, Amazon trades at a premium compared to other cloud hyperscalers. As the trends in the chart above illustrate, Amazon stock has rebounded sharply after a precipitous sell-off earlier this year. Right now, I think Amazon stock might have some momentum behind it due to a more bullish macro viewpoint that cloud infrastructure is one of the next pillars supporting the broader AI narrative. As I explored above, quantum computing is only one pocket of the AI realm that Amazon seeks to disrupt. The company has made massive strides at the intersection of cloud computing and AI, and appears to have more lucrative growth prospects to support its e-commerce business through ongoing robotics developments. While the stock has gotten pricey, I still see Amazon as a rock-solid opportunity for investors with a long-term time horizon. Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Amazon 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 $680,559!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,005,670!* Now, it's worth notingStock Advisor's total average return is1,053% — a market-crushing outperformance compared to180%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 15, 2025 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Tesla. The Motley Fool has positions in and recommends Alphabet, Amazon, Berkshire Hathaway, Microsoft, Oracle, and Tesla. The Motley Fool recommends Abercrombie & Fitch and 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. Warren Buffett Is Invested in These Three Magnificent Quantum Computing Stocks. Here's the Best of the Bunch. was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
17-06-2025
- Business
- Yahoo
3 Top Quantum Computing Stocks to Buy in 2025
Amazon and Alphabet are developing internal quantum computing chips. IonQ has sold some of its products to Amazon Web Services and Google Cloud. 10 stocks we like better than IonQ › Quantum computing is a hot topic in the market, and if it proves to be a viable technology over the next decade, it can really shake up the computing industry. However, pinpointing the winner of the quantum computing race is far from certain. No company has set itself apart from another as the go-to solution for quantum computing, so the field is wide open. Investing in quantum computing start-ups right now is akin to biotech investing -- either a company will succeed or it will fail. This all-or-nothing investment approach may suit some investors, but I'm not a huge fan of it. Instead, I'd rather pick some of the big tech companies competing in this race and have a backup plan should quantum computing not work out. From that standpoint, I like Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Amazon (NASDAQ: AMZN). In the start-up realm, I'm a huge fan of IonQ (NYSE: IONQ), although that company is more of a long shot compared to the other two. I think it's key to take a balanced approach in quantum computing, and taking a position in this trio exposes investors to the right amount of risk. Alphabet kicked off the latest quantum computing hype cycle in December 2024 when it announced its Willow chip had completed a computing task in five minutes that would take the most powerful supercomputer 10 septillion years (a 10 with 25 trailing zeros) to perform. Now, this test was rigged in Willow's favor because it tackled a problem that is only solvable using quantum computers, but there are many problems like that in the world, such as logistics networks and weather patterns. There are also massive implications with AI, and quantum computing could be the technology that unlocks AI's maximum potential. Amazon is also working on its own chip, Ocelot. These two companies are heavily pursuing quantum computing because they have already built significant infrastructure to support cloud computing. Cloud computing involves moving workloads online to a cloud computing server, which clients rent from providers like Amazon Web Services (AWS) or Google Cloud. Having rentable quantum computing hardware is key, as they don't want to be caught in the same position as traditional computing. The most popular workhorse computing hardware used in cloud computing is the graphics processing unit (GPU), made by Nvidia (NASDAQ: NVDA). GPUs have become popular devices to run workloads on, and Nvidia has captured a massive chunk of the data center computing market share. As a result, AWS and Google Cloud must continue buying expensive hardware from Nvidia. If they can develop their own quantum computing solutions for the next wave of computing innovation, they won't be subject to a supplier's ecosystem, allowing them to make more money. However, it's possible that these two may fail and lose to a start-up like IonQ. IonQ is a full-stack quantum computing company, meaning it develops the hardware and software that allow quantum computers to run. This is similar to how Nvidia operates with GPUs, and if IonQ's technology proves to perform better than the products Alphabet and Amazon develop in-house, it could be a massive winner. IonQ has already sold some hardware to AWS and Google Cloud, as it is ahead of both competitors in terms of a go-to-market product. Thanks to its all-to-all connectivity within its system, it has achieved an industry-leading 99.9% two-qubit gate fidelity (a measure of how accurate its results are). IonQ has already sold a few units and is slated to launch several more as demand increases. Although IonQ may not be the winner in the quantum computing arms race, it is a leader. It will be a monster winner for investors if it wins the quantum computing arms race outright. However, if it does not, the stock will likely become worthless. That's why I like adding companies like Amazon and Alphabet to the mix, as they have a base business to fall back on should their internal quantum computing technologies not work out. Even if they don't, the quantum computing arms race may play out similarly to the AI arms race, where the cloud computing businesses see strong growth as more workloads come online. Before you buy stock in IonQ, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and IonQ 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 $653,702!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $870,207!* Now, it's worth noting Stock Advisor's total average return is 988% — 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 John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool's board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Keithen Drury has positions in Alphabet, Amazon, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, and Nvidia. The Motley Fool has a disclosure policy. 3 Top Quantum Computing Stocks to Buy in 2025 was originally published by The Motley Fool
Mint
11-06-2025
- Science
- Mint
Why is big tech fussing over fault-tolerant quantum computers?
For more than a decade, big tech companies like IBM, Google and Microsoft have been loudly announcing that quantum computers will soon solve tasks that stump today's supercomputers. From simulating molecules for drug discovery to optimizing global logistics, they promised revolutionary breakthroughs, and all that in seconds instead of months and years. Quantum computers do hold a lot of promise. Two bits in the traditional or classical computers we use in homes and offices today can represent one of four possible states—00, 01, 10, or 11—but only one at a time. In contrast, two quantum bits (qubits) in a quantum computer can represent all four states simultaneously, thanks to superposition and entanglement properties, effectively functioning like four classical computers in one. However, as a quantum computer's power grows exponentially when you add more qubits, it also becomes more prone to errors. In technical terms, these are known as Noisy Intermediate-Scale Quantum (NISQ) devices that typically host fewer than a few hundred qubits, but are incredibly fragile and lose their quantum properties when disturbed by variables like heat, vibrations, or electromagnetic interference. Tech companies use the term "error correction" to remedy this situation. It can be likened to having multiple backup musicians playing the same part in a noisy concert hall. If one musician makes a mistake, the others can detect it and correct it in real-time. In quantum computing, this means using many physical qubits (individual musicians) to create one "logical qubit" (the perfect musical note) that can maintain its quantum state reliably. But how soon is soon? Quantum, by its very nature, is unpredictable. Hence, the error correction process is gradual and not a one-time achievement. For instance, Google's quantum computing chip named Willow made waves in December 2024 for its ability to reduce system errors despite adding qubits, and solving a computation in under five minutes that would take a supercomputer 10 septillion years (1 with 25 zeroes), more than the age of the Universe, to finish. It even prompted Elon Musk to react with a 'Wow' when Google CEO, Sundar Pichai, announced this on X. But the next challenge, as Google itself put it, was "to demonstrate a first 'useful, beyond-classical' computation on today's quantum chips that is relevant to a real-world application". Google is targeting 1 million qubits by the end of the decade, though error correction means only 10,000 will be available for computations. This February, Amazon Web Services (AWS) announced its new Ocelot quantum computing chip "that can reduce the costs of implementing quantum error correction by up to 90%". AWS designed Ocelot's architecture with built-in error correction from the ground up, using 'cat qubits'—named after Schrödinger's cat—for their natural ability to suppress certain errors. In a first, AWS researchers integrated cat qubits with additional error correction components on a microchip, using scalable manufacturing techniques adapted from the microelectronics industry. That very month, Microsoft too announced a "significant leap in quantum computing" with the launch of Majorana 1, which it touted as a revolutionary quantum chip powered by a new topological core. While introducing the chip, Satya Nadella said on X that this "entirely new state of matter (the other three main states of matter being: solid, liquid and gas)", unlocked by a new class of materials called "topoconductors", is what powers Majorana 1. Microsoft added that this means the chip incorporates error resistance at the hardware level, making it inherently more stable. IBM advances the timeline IBM had earlier announced its commitment to building a 100,000-qubit fault-tolerant system by 2033. On 10 June, it advanced this deadline, unveiling a roadmap to build the world's first large-scale, fault-tolerant quantum computer by 2029. "IBM is charting the next frontier in quantum computing," CEO Arvind Krishna said in a press statement, attributing the progress to the company's "expertise across mathematics, physics, and engineering is paving the way for a large-scale, fault-tolerant quantum computer that will solve real-world challenges". The IBM Quantum Starling, to be housed in a new data center in New York, will perform 20,000 times more operations than current quantum computers. Its computational state would require memory equivalent to more than a quindecillion (1 and 48 zeroes) of today's most powerful supercomputers. Further, the new system addresses quantum computing's fundamental challenge: error correction. Starling will execute 100 million quantum operations using 200 logical qubits—units that combine multiple physical qubits to monitor and correct errors. This foundation will enable IBM Quantum Blue Jay, capable of 1 billion operations over 2,000 logical qubits. IBM's breakthrough centres on quantum low-density parity check (qLDPC) codes, which reduce required physical qubits by approximately 90% compared to existing methods. It has detailed the architecture's efficiency and real-time error correction capabilities in two separate technical papers. The roadmap includes three stepping stones: IBM Quantum Loon (2025) will test qLDPC architecture components; Kookaburra (2026) combines quantum memory with logic operations as the first modular processor; and Cockatoo (2027) will link multiple quantum chips together. This fault-tolerant quantum computer could revolutionize drug development, materials discovery, chemistry, and optimization by accessing computational power previously impossible to achieve at scale. These advancements are designed to culminate in Starling in 2029. 'IBM's decision to pull its 100-000-qubit goal forward to 2029 is just one out of multiple announcements to be made for quantum computing's commercial decade," Anders Indset, business philosopher and tech investor, said. 'Capital is pouring in, talent is converging, and the first consolidations are already reshaping the field. When money and competence collide at this scale, progress doesn't follow Moore's law (number of transistors on a computer chip doubles roughly every two years, making computers faster and cheaper over time), it can be much more radical." Indset expects more breakthrough announcements this year. "Boards that still treat quantum as a slide-deck talking point and potential future topics will soon be negotiating with rivals who are quantum secure and can model molecules or optimise global supply chains in minutes, not months," he added. What are other companies doing? Precedence Research pegs the global quantum computing market at $1.44 billion in 2025 and predicts it to touch $16.22 billion by 2034. While IBM, Google, Microsoft, and AWS lead with hardware-heavy approaches, startups like Quantinuum, PsiQuantum, and Riverlane are pushing complementary innovations—from new codes to scalable photonics and decoding software. D-Wave doesn't currently use standard quantum error correction because its machines are annealers, not universal quantum computers. Instead, it focuses on noise-aware design and error mitigation. A quantum annealer is a special type of quantum computer designed to solve optimization problems (finding the best solution out of many possible ones). Closer home, India's National Quantum Mission (NQM), launched in 2023 with an outlay of ₹6,003 crore, has already awarded up to ₹30 crore each to eight startups—QNu Labs, QPiAI India, Dimira Technologies, QuPrayog, Quanastra, Quan2D, Pristine Diamonds, and Prenishq. The idea is to jumpstart India's presence in quantum technologies, including quantum computing, sensing, communications, and quantum error correction (QEC). With NQM, India plans to develop quantum computers with 50-100 qubits in about five years, and accelerate it to 1000 qubits and beyond in eight years. Recognizing the importance of robust algorithm development—particularly for fault tolerance and error correction—Ajai Chowdhry, chairman of the NQM Mission Governing Board, and EPIC Foundation, told Mint in an interview that NQM is launching a dedicated initiative focused on quantum algorithms. The adoption of quantum technologies across industries could potentially add $280–310 billion of value to the Indian economy by 2030 with the manufacturing, high-tech, banking, and defence sectors at the forefront of quantum-led innovation, according to a 2022 Nasscom-Avasant report.
