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Yahoo
an hour ago
- Business
- Yahoo
D-Wave or IonQ: Which Quantum Stock Has More Upside in 2025?
D-Wave Quantum QBTS and IonQ IONQ are two of the most prominent pure-play quantum computing companies. While both companies aim to transform traditional computing architectures, their strategies and technologies diverge significantly. D-Wave focuses on quantum annealing and hybrid quantum-classical solutions designed for practical, near-term business applications, such as optimization and AI. IonQ, on the other hand, is building gate-based, fault-tolerant quantum systems designed to solve more complex and scalable problems over the long term. Both companies kicked off 2025 on a solid note, banking on strong technological progress and growth strategies. From investors' perspective, the question remains, which stock holds greater potential for delivering gains this year? Let's find out. Reasons to Be Bullish on QBTS Evolution of Advantage2 From Prototype to Deliver Production-Ready Performance: D-Wave has made rapid strides with its Advantage2 system, evolving from a prototype with 1,200+ qubits and 20-way qubit connectivity to a production-ready sixth-generation quantum annealer launched in May 2025. The full-scale Advantage2 now boasts over 4,400 qubits, 40% greater energy scale, 75% noise reduction, and 2x coherence, delivering unprecedented performance for real-world use cases in optimization, AI and materials science. Improving Financial Health With Margin Expansion: D-Wave is showing financial progress in 2025, with expanding gross margins and a narrowing adjusted EBITDA loss. In the last reported first quarter of 2025, 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% from 67.3%, and non-GAAP gross margin to 93.6% from 76.6%. The company reduced its adjusted EBITDA loss to $8.4 million, a 15% improvement year over year, while also trimming its net loss by 10%. This reflects operational discipline, better cost management and growing revenue contributions from commercial deployments. Image Source: Zacks Investment Research Strategic Capital for Growth: In early July, D-Wave Quantum wrapped up a $400 million at-the-market equity raise at an average price of $15.18, a 360% premium over January's raise. This boosted its cash reserves to approximately $815 million to fund R&D, strategic acquisitions and global expansion. Image Source: Zacks Investment Research What's Driving IonQ? Acquisitions and Deep Tech Collaborations: IonQ is building a vertically integrated quantum platform by acquiring Lightsynq, Capella Space and Oxford Ionics, adding cutting-edge capabilities in photonic interconnects, quantum memory and repeaters, satellite-based QKD, and ion-trap R&D. These moves position IonQ to build scalable systems with millions of qubits and enable a future quantum Internet. At the same time, partnerships like DARPA's Quantum Benchmarking Initiative, a 12% performance gain with Ansys at NVIDIA NVDA GTC and advanced QPU simulations on Forte Enterprise highlight its leadership in next-generation quantum and networking technologies. Growing Revenues, Margins and Strong 2025 Outlook: IonQ delivered $7.6 million in revenues in first-quarter 2025, representing solid year-over-year growth, while also reducing its net loss to $32.3 million from $39.6 million in the first quarter of 2024. The company also narrowed its adjusted EBITDA loss to $25.8 million, reflecting improved cost discipline, operational leverage and expanding commercial traction. Management is also confident about delivering $37-41 million in full-year 2025 revenues, driven by increased demand for its high-performance systems like Forte and Tempo, and stronger enterprise engagements across AI, defense, and scientific research. Image Source: Zacks Investment Research Financial Position & Capital Raising: IonQ closed the first quarter of 2025 with approximately $697 million in cash equivalents. The company later announced a $1 billion equity offering, boosting pro-forma cash reserves to about $1.68 billion that can be used to fund R&D, acquisitions and commercialization. Image Source: Zacks Investment Research QBTS Outperforms IONQ and Benchmark YTD Year to date, shares of D-Wave Quantum have surged 141.6%, handily outperforming the S&P 500's 8.5% rise. Contrastingly, IonQ underperformed both, with a 3.6% rise in its stock price during the same period. YTD Price Comparison Image Source: Zacks Investment Research Which Stock to Bet on in 2025? While D-Wave Quantum and IonQ are pursuing distinct quantum strategies, QBTS' strong near-term traction, margin gains and stock growth give it an edge for 2025 returns. IonQ's long-term vision remains compelling, but its slower revenue ramp-up and larger losses suggest a longer runway to commercialization. With both stocks carrying a Zacks Rank #3 (Hold), investors seeking nearer-term gains may find QBTS better positioned for outperformance this year compared to IONQ. You can see the complete list of today's Zacks #1 Rank (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 NVIDIA Corporation (NVDA) : Free Stock Analysis Report IonQ, Inc. (IONQ) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
17 hours ago
- Business
- Yahoo
D-Wave Quantum or NVIDIA: Which Stock Is a Better Buy Now?
NVIDIA Corporation's NVDA shares have risen 27.1% so far this year, mainly due to its advances in artificial intelligence (AI). Meanwhile, D-Wave Quantum Inc. QBTS has seen an even larger increase in its share price, fueled by the benefits of quantum computing over traditional computing, making it a notable contender in the tech sector. Now, let's examine which of these two stocks might present a better investment opportunity. Reasons to Be Bullish on D-Wave Quantum Stock D-Wave Quantum's shares have gained an impressive 141.7% year to date, following an 854% surge last year. Of course, D-Wave Quantum stock experienced volatility in early 2025 after NVIDIA CEO Jensen Huang expressed skepticism about the growth of quantum computing. However, later, when he acknowledged being wrong about the timeline of quantum computing growth, D-Wave Quantum's stock saw a significant rally. On Wednesday, D-Wave Quantum's value increased due to new reports from analysts at Canaccord and B. Riley. Both maintained a buy rating, with B. Riley raising its D-Wave Quantum price target to $22 from $20. Recently, D-Wave Quantum's stock rose after announcing that its Advantage2 quantum computer, with over 400 qubits, is now accessible to commercial clients. D-Wave Quantum's ability to sell its Advantage2 quantum computer to the Jülich Supercomputer Center in Germany helped the company post outstanding first-quarter results. Its revenues for the quarter reached $15 million, a massive 509% increase year over year. This surpassed the total sales for all of 2024, which were $8.8 million. D-Wave Quantum had 133 customers in the quarter, in contrast to 128 last year. These included government clients. Separately, private companies using D-Wave Quantum's services include Lockheed Martin Corporation LMT. Reasons to Be Bullish on NVIDIA Stock NVIDIA exceeded Apple Inc. AAPL and Microsoft Corporation MSFT in terms of market capitalization, as it surged to $4 trillion in a brief period. The company's strong position in AI contributed to its recent stock price rise, and it announced $44.1 billion in revenues for the first quarter of its fiscal year, marking a 69% increase year over year. A large part of these revenues came from the data center industry, driven by increased demand from cloud service companies improving their AI systems. Even with the U.S. imposing restrictions on H20 chip exports to China, NVIDIA reported a net income of $18.8 billion for the quarter, up 26% from the same period last year. Nevertheless, the recent openness of U.S. officials to resume H20 sales in China could enhance NVIDIA's results in upcoming quarters. The growing demand for NVIDIA's next-generation Blackwell chips and CUDA software platform is expected to strengthen its financial performance and drive its stock price upward. Which Stock, QBTS or NVIDIA, Is the Better Investment Now? With Jensen Huang believing quantum computing is approaching an inflection point and D-Wave's quantum solutions boosting its revenue and expanding its customer base, shareholders may feel encouraged to hold onto QBTS shares. However, new investors should exercise caution when buying D-Wave Quantum shares, as the company reported a net loss of $5.4 million in the first quarter. Quantum computing remains in its early stages, and its practical applications may take years to develop. Additionally, major players like Microsoft and Alphabet Inc. GOOGL are showing interest in the sector, and D-Wave Quantum could become a target for acquisition. Regarding NVIDIA, the company's strategy of integrating quantum processing units and graphics processing units (GPUs) could facilitate a low-risk transition into quantum computing, potentially posing challenges for D-Wave Quantum. NVIDIA, in itself, is poised for growth, banking on demand for Blackwell chips and AI GPUs, prompting stakeholders to retain their shares. But for new investors, NVIDIA's price-to-earnings (P/E) ratio of 40.1 times forward earnings makes it no longer a bargain, suggesting waiting before investing now. Image Source: Zacks Investment Research Both NVIDIA and D-Wave Quantum currently have a Zacks Rank #3 (Hold). 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 Lockheed Martin Corporation (LMT) : Free Stock Analysis Report Apple Inc. (AAPL) : Free Stock Analysis Report Microsoft Corporation (MSFT) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report Alphabet Inc. (GOOGL) : Free Stock Analysis Report D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research
Yahoo
2 days ago
- Business
- Yahoo
Jim Cramer Says 'I Want You to Own This D-Wave'
D-Wave Quantum Inc. (NYSE:QBTS) is one of the stocks Jim Cramer reflected on. When a lightning round caller inquired about the stock, Cramer responded: 'I want you to own this D-Wave. Here's why I want D-Wave because one headline, one little story, and that stock goes up 10 points. I mean, I'm looking at stuff that is going up 10 points on nothing, and D-Wave has the ability to be able to do that because it's actually a real company.' A modern computer datacenter, running an advanced quantum computer system. D-Wave (NYSE:QBTS) develops quantum computing systems, software, and cloud services. The company provides hybrid quantum-classical solutions for complex problems in logistics, scheduling, optimization, drug discovery, and more across enterprise applications. During a May episode, Cramer mentioned the company and shared his bullish sentiment: 'Alright, I'm going to tell you something good. I think of the ones that are out there, this is the best, okay? How's that? This is the best. And if they got any good news beyond what they have, the stock probably goes to 25. There we go.' While we acknowledge the potential of QBTS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey. 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
Business Insider
3 days ago
- Business
- Business Insider
Quantum Computing News: D-Wave (QBTS) Targets $5M ROI, BofA Sees Breakthrough Potential, JPM Overhauls Research Leadership
As we continue to monitor the weekly developments in quantum computing, the emerging technology continues to edge closer to commercial reality, and the past week brought more evidence to watch. This week's updates highlight rising enterprise interest, federal momentum, and renewed investor optimism in the sector. From D-Wave's survey showing new ROI signals to bipartisan engagement in Washington, the pace continues to accelerate. 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. D-Wave Quantum Inc. Survey Shows Growing Business Appetite D-Wave Quantum Inc. (QBTS) published results from a new study of 400 global business leaders showing 81% believe they've hit the limits of classical computing. 53% plan to integrate quantum optimization within two years, and 46% expect $1 million to $5 million in return on investment (ROI) within 12 months. Manufacturing, logistics, and planning were named as top use cases. While concerns remain over in-house expertise and demonstrating ROI, 85% of respondents said their company risks becoming less competitive without adopting quantum computing. Shares of QBTS rose by more than 10% in the last five days of trading. Bank of America Flags Quantum as 'Transformative,' but No Quantum Coverage for Now In a report on next-gen computing, Bank of America called quantum one of the most transformative technologies of the coming decade, with potential to reshape finance, cybersecurity, healthcare, and logistics. However, the firm has not initiated coverage on any quantum stocks, citing technical fragility and commercialization hurdles. The report noted that quantum computing could complement artificial intelligence to unlock trillions of dollars in untapped data value, especially in fields such as drug discovery and materials science. The bank expects practical milestones between 2030 and 2033. Congress Hears the Quantum Pitch at QED-C Showcase The Quantum Economic Development Consortium (QED-C) hosted its second Capitol Hill showcase, featuring 26 companies, including Alphabet's Google (GOOG), Microsoft (MSFT), D-Wave Quantum Inc., IonQ Inc. (IONQ), and Rigetti Computing Inc. (RGTI), which demonstrated real-world applications. Senior officials from the Department of Energy and National Science Foundation joined members of Congress in supporting expanded investment and reauthorization of the National Quantum Initiative. The event emphasized national security, industrial innovation, and the role of U.S. leadership in quantum technologies. JPMorgan Chase Reshuffles Quantum Research Leadership According to a CNBC report, JPMorgan Chase (JPM) has replaced the head of its Global Technology Applied Research (GTAR) group, which oversees quantum computing and other emerging technologies. Marco Pistoia, who joined the firm in 2020 and was a central figure in its quantum research efforts, has departed. He will be succeeded by Rob Otter, most recently the global head of digital and quantum technology at State Street. Otter previously led JPMorgan's blockchain unit, Onyx, and brings experience from Barclays, Credit Suisse, and Goldman Sachs (GS). The firm's GTAR group has explored quantum applications across secure communications, risk modeling, and optimization. JPMorgan is an investor in Quantinuum and has collaborated with IBM (IBM) and others on research initiatives. The leadership change may reflect a broader strategic refresh as the firm deepens its investments in next-gen computing. TipRanks users following stocks like IonQ, Rigetti Computing, and D-Wave Quantum Inc. may want to monitor policy developments, adoption trends, and enterprise signals, as these companies compete to commercialize their early-stage platforms. Using TipRanks' Comparison Tool, we've brought together some of the most prominent stocks in the quantum space to see how they stack up. It's a quick way for investors to get a clearer view of each company's position, and a better sense of where the industry is headed overall.
Business Insider
4 days ago
- Business
- Business Insider
D-Wave Quantum (QBTS) Capitalizes on Annealing Advantage to Extend Bullish Outlook
Shares of quantum computing pioneer D-Wave Quantum (QBTS) have surged more than 124% year-to-date, fueled by the commercial debut of its Advantage2 annealing quantum computer, strong first-quarter earnings, and a successful $400 million capital raise through a stock offering. 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. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. I'm optimistically Bullish about quantum computing, and D-Wave in particular, as the company provides distinctive exposure to what could be a transformative leap in technology. That said, the stock currently trades at a premium and carries considerable risk. QBTS Makes Progress as Competition Heats Up As the world's first commercial quantum computer manufacturer, D-Wave has demonstrated quantum computational supremacy in solving real-world problems, thereby distinguishing its practical applications from purely theoretical approaches in quantum computing. The company spent over two decades developing both 'annealing' and 'gate-model' systems that leverage quantum mechanics to try and solve problems in fundamentally different ways than traditional computers. D-Wave's annealing quantum technology is gaining commercial traction, with companies reporting productivity improvements from implementation. Recent successes include a memorandum of understanding (MOU) with South Korea's Yonsei University and Incheon Metropolitan City, positioning D-Wave within South Korea's national quantum initiatives. The company has also completed a recent transaction with Julich. These have strengthened D-Wave's revenue trajectory, show support for its Quantum Computing as a Service (QCaaS) business model, and help further establish the company's presence in key global markets. While D-Wave benefits from its first-mover advantage and commercial focus, the company faces intensifying competition as tech giants, with massive research budgets and established technology ecosystems, like IBM (IBM), Alphabet (GOOGL), and Microsoft (MSFT), race to make quantum computing a reality. D-Wave's Financial Performance Shows Promise Looking back to May, D-Wave published its first-quarter 2025 results, which exceeded expectations, with revenue of $15 million—a 500% increase from the same period last year—reflecting the company's first sale of its flagship Advantage system to a major research institution. The company's gross profit margin of 92% was impressive and suggests D-Wave has made significant progress toward building a genuinely scalable business model with strong pricing power. While the company beat earnings expectations with a loss of just $0.02 per share, versus the anticipated $0.05 loss, it's still burning through cash to fund growth, reflecting the reality that quantum computing remains primarily a research and development play. However, the company also recently took steps to shore up its balance sheet. After completing a $400 million equity raise in July, D-Wave now holds approximately $815 million in cash. This war chest provides crucial breathing room to invest in research, expand operations, and weather the inevitable ups and downs of an emerging market. An Expensive Ticket to This Volatile Ride D-Wave's valuation has reached all-time highs. The company trades at over 176x its trailing revenue and more than 23x its book value. To put that in perspective, its peers in the Information Technology sector trade at an average Price/Sales ratio of 3.26x and a Price/Book ratio of 3.64x. D-Wave's valuation implies investors believe the company will achieve massive scale soon. This creates a challenging situation for investors. Any disappointment in growth, competitive setbacks, or delays in the adoption of quantum technology could trigger a sharp decline in its share price. The recent 10%+ drop following reports of increased competition from IBM and Google demonstrates the stock's sensitivity to headline news. Furthermore, while most experts agree that quantum computing will eventually reach mainstream adoption, 'eventually' could mean anywhere from five years to twenty. The company will need to maintain its technological edge and continue growing revenue during what could be a long development/adoption period. Is QBTS a Good Stock to Buy? Wall Street analysts, as covered by TipRanks, currently rate QBTS as a Strong Buy based on the recent recommendations of seven analysts. Currently, QBTS' average stock price target of $17.33 is below the current market price, indicating that analysts expect QBTS stock to decline by ~6% over the next 12 months. More specifically, Cantor Fitzgerald recently initiated coverage with an Overweight rating and a $20 price target, while Benchmark Co. analyst David Williams reiterated a Buy rating with a $20 price target. Both firms recognize quantum computing as an emerging technology with substantial economic potential, despite being in early developmental stages. QBTS Must Face Risks to Achieve Quantum Dominance Quantum computing holds the potential to transform how we solve complex problems, and D-Wave is uniquely positioned to benefit from this shift. Its dual-technology approach provides flexibility that competitors lack, while its commercial focus has translated into actual revenue growth rather than just research papers. The recent cash infusion eliminates near-term financial risk and provides resources to accelerate development. However, the current stock price already incorporates significant optimism about D-Wave's future success. The extreme valuation multiples leave little room for disappointment, while intensifying competition creates ongoing execution risk. As an investor willing to accept potential substantial volatility in exchange for exposure to quantum computing, I believe a small position in QBTS merits strong consideration.
