Latest news with #QBTS
Miami Herald
6 days ago
- Business
- Miami Herald
Analyst flags new quantum computing stocks to buy
Last week, investors took note as a group of unexpected tech stocks started rising steadily. These companies weren't part of the Magnificent 7, a group of tech leaders responsible for most of the sector's growth. In fact, they often fly under most investors' radar. The companies were part of the quantum computing field. This fast-growing market centers around a type of computing that leverages the principles of quantum mechanics, solving complex problems by utilizing quantum bits (qubits) of information at significantly higher speeds than traditional computers. Don't miss the move: Subscribe to TheStreet's free daily newsletter While quantum computing is sometimes overshadowed by artificial intelligence (AI), the industry has been making strides lately, particularly by one company. Its most recent news sent quantum computing stocks surging last week, though the momentum has since cooled. However, one financial expert believes the sector is poised for growth. He recently flagged a few quantum computing stocks as likely winners. When quantum computing stocks are trending, it's often due to updates from D-Wave Quantum (QBTS) . A leader in practical quantum computing, D-Wave has emerged as the industry's leader, rising more than 470% over the past two quarters. Related: Quantum computing stock surges after surprising announcement Wall Street veteran Stephen Guilfoyle, who follows the sector closely, recently highlighted the progress demonstrated both by D-Wave and its peer Quantum Computing (QUBT) , a company that produces photonic hardware solutions for quantum machines. While Guilfoyle admits that he prematurely exited his position in D-Wave, he now sees it as a small-cap stock that is "ripe for the picking" for investors looking to gain exposure to the fast-growing quantum computing industry. While he describes QBTS as being "more ripe" than QUBT, he sees potential in both stocks. Earlier this month, D-Wave reported extremely strong Q1 earnings, setting records for both Generally Accepted Accounting Principles (GAAP) gross profit and quarterly end cash position. Guilfoyle highlighted both companies' earnings progress in a recent analysis, stating: More Wall Street News: Billionaire fund manager dumps Tesla in favor of other tech stockTop analyst sends bold message on S&P 500Billionaire fund manager, skeptical of AI, backs shocking stock The analyst also flags a positive change for D-Wave, stating that its balance sheet had improved and should no longer be considered inferior to Quantum Computing's. While he adds that D-Wave's books include a few longer-term liabilities, he notes that it has adequate cash to address them should the need arise. In his analysis, Guilfoyle is careful to note that by traditional financial standards, both QBTS and QUBT should be considered "grossly overvalued." He notes, though, that capital is still flowing into Palantir Technologies, an AI-focused software producer that is also considered overvalued and is currently up almost 500% for the year. Related: IonQ CEO's strong 4-word message sends stock soaring As TheStreet reported earlier this year, several quantum computing stocks surged late in 2024, leading to speculation that their high valuations could pose problems in the near future. While these companies may be overvalued, Guilfoyle doesn't seem worried about the future of the industry. He still believes that quantum computing is a sector ripe with potential, comparing it to another area of technology that has boomed recently. If he is correct, companies like D-Wave and Quantum Computing are likely well-positioned to help lead the charge as this new frontier of technology continues to mint a new generation of market winners. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.
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.
Business Insider
27-05-2025
- Business
- Business Insider
Booming D-Wave Quantum (QBTS) Enters Uncharted Nosebleed Territory
Although quantum computing remains a futuristic frontier, investors recently got a glimpse of its potential when D-Wave Quantum (QBTS) surged 28% following the debut of its latest quantum system, Advantage2. Practically overnight, QBTS became one of the most actively traded stocks in the U.S. Confident Investing Starts Here: While still speculative, I view D-Wave as one of the most commercially compelling pure-play quantum bets available, offering a rare mix of cutting-edge niche tech and long-term high-alpha potential. That said, with its current valuation looking stretched, I'm taking a neutral stance in the near term. What Sets D-Wave Apart D-Wave sets itself apart from most quantum computing companies by focusing not on gate-based quantum systems like those pursued by IBM (IBM) and Google (GOOGL), but on a specialized approach known as quantum annealing. Unlike general-purpose quantum computing, quantum annealing is designed to quickly identify optimal solutions by evaluating various possibilities and selecting the one with the lowest energy state. With the introduction of its Advantage2 system, D-Wave has meaningfully advanced its annealing capabilities, improving qubit connectivity, reducing noise, and boosting computational accuracy. The system now links each qubit to 20 others, up from 15 in the previous version, significantly enhancing performance for complex optimization tasks. A peer-reviewed Science study demonstrated that D-Wave's system could solve certain problems in mere minutes, tasks that would take classical supercomputers millions of years. That's a real, measurable step toward quantum advantage. D-Wave is Nesting With Tech Giants While many organizations and companies are building quantum computing without a real-world application, D-Wave has a formidable list of paying customers. Companies like Volkswagen (VWAGY), Lockheed Martin (LMT), NASA, and BBVA Bank (BBVA) have tested D-Wave's quantum annealing solutions for complex optimization problems. In Volkswagen's case, D-Wave's technology has been used to optimize traffic patterns in dense urban centers like Beijing, with the goal of dramatically decreasing congestion levels and shortening commute times. Similarly, Spanish bank BBVA used quantum annealing to assess risk in the financial sector and reallocate investments accordingly, potentially identifying risks and opportunities quicker than previously. Financial Health Check Shows High-Risk, High-Reward There's no denying the high risk associated with investing in frontier technologies like quantum computing. In Q1 FY2025, D-Wave reported impressive revenue growth—$15 million, marking a 509% year-over-year increase, largely driven by hardware sales. However, this growth came alongside a net loss of $5.4 million and a concerning $19.3 million in cash burn. To shore up its finances, D-Wave recently raised around $146.2 million through a share issuance that diluted existing shareholder equity. While equity dilution is common for early-stage tech firms, current investors should be mindful that future capital raises could further erode their ownership stakes. From a technical standpoint, the stock appears overextended. The 14-week Relative Strength Index (RSI) is above 70, indicating overbought conditions, and the stock is trading well above both its 50-week and 200-week moving averages. These signals point to a potential pullback. While the long-term outlook is promising and speculative upside remains strong, I'm staying on the sidelines for now and maintaining a neutral stance until the valuation cools off. D-Wave Is in a Crowded Market There is robust competition in the quantum computing sector, as everyone, including IBM, Google, and IonQ (IONQ), is investing heavily in gate-model quantum computers. These computer models do provide broader computing capabilities, but D-Wave's quantum annealing is best at optimization tasks. This specialization gives D-Wave a significant first-mover advantage and a unique market position worth capitalizing on over the long term. However, how long D-Wave will retain that advantage remains to be seen. Gate model quantum computing technology is developing quickly. If these improvements mean that the gate can complete optimizations as effectively as D-Wave's annealing technology, D-Wave's competitive advantage will diminish. But D-Wave isn't waiting for technology to reach a point where such competition exists; it's also investigating gate model technologies, allowing the company to pool across both areas. In the near term, its moat will almost certainly be retained by being the first mover to the market for optimization. Is QBTS a Good Stock to Buy? On Wall Street, QBTS has a consensus Strong Buy rating based on six Buys, zero Holds, and zero Sells. However, aligned with my opinion, the consensus rating sees a 30% downside over the next 12 months based on QBTS' average price target of $13. As such, it's best to wait before buying the stock. The Time to Wait, Not Chase Quantum computing is poised to reshape the tech landscape in the long run, and D-Wave is emerging as a category leader in quantum optimization. That said, it's important to keep expectations realistic. Despite its future promise, quantum computing remains a highly speculative and unproven space, with profitability still uncertain and stock price swings likely to be sharp. For investors, D-Wave should be approached like a venture-style bet—an appropriately small, high-risk position within a well-diversified portfolio. If it delivers, the upside could be substantial. If it doesn't, the impact on your broader holdings remains limited. Right now, however, the stock looks overheated. The smart move is to wait for the current excitement to cool, then reassess for a better entry point ahead of the next potential rally.
Yahoo
23-05-2025
- Business
- Yahoo
Why D-Wave Quantum Inc. (QBTS) Soared Today
We recently published a list of In this article, we are going to take a look at where D-Wave Quantum Inc. (NYSE:QBTS) stands against other stocks that soared today. D-Wave Quantum surged by 23.96 percent on Thursday to finish at $19.04 apiece, as investors continued to gobble up shares following the launch of a new quantum computer, which is said to be capable of solving problems beyond the capabilities of a classical GPU-based supercomputer. Called the Advantage2, it is said to be capable of addressing real-world use cases in areas such as optimization, materials simulation, and artificial intelligence (AI). A modern computer datacenter, running an advanced quantum computer system. '[The launch] marks a significant milestone not just for D-Wave, but for the quantum computing industry as a whole, as we bring to market our sixth-generation quantum computer, a system so powerful that it can solve hard problems outside the reach of one of the world's largest exascale GPU-based classical supercomputers,' said D-Wave Quantum Inc. (NYSE:QBTS) CEO Alan Baratz. Customers are now able to access the Advantage2 system through the company's LeapTM real-time quantum cloud service, which is available in more than 40 countries and offers 99.9 percent availability and uptime, sub-second response times, and SOC 2 Type 2 compliance to meet enterprise needs and security requirements. Overall, QBTS ranks 5th on our list of stocks that soared today. While we acknowledge the potential of QBTS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QBTS and has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Yahoo
23-05-2025
- Business
- Yahoo
Why D-Wave Quantum Inc. (QBTS) Soared Today
We recently published a list of In this article, we are going to take a look at where D-Wave Quantum Inc. (NYSE:QBTS) stands against other stocks that soared today. D-Wave Quantum surged by 23.96 percent on Thursday to finish at $19.04 apiece, as investors continued to gobble up shares following the launch of a new quantum computer, which is said to be capable of solving problems beyond the capabilities of a classical GPU-based supercomputer. Called the Advantage2, it is said to be capable of addressing real-world use cases in areas such as optimization, materials simulation, and artificial intelligence (AI). A modern computer datacenter, running an advanced quantum computer system. '[The launch] marks a significant milestone not just for D-Wave, but for the quantum computing industry as a whole, as we bring to market our sixth-generation quantum computer, a system so powerful that it can solve hard problems outside the reach of one of the world's largest exascale GPU-based classical supercomputers,' said D-Wave Quantum Inc. (NYSE:QBTS) CEO Alan Baratz. Customers are now able to access the Advantage2 system through the company's LeapTM real-time quantum cloud service, which is available in more than 40 countries and offers 99.9 percent availability and uptime, sub-second response times, and SOC 2 Type 2 compliance to meet enterprise needs and security requirements. Overall, QBTS ranks 5th on our list of stocks that soared today. While we acknowledge the potential of QBTS, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than QBTS and has 10,000% upside potential, check out our report about this cheapest AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. 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
