Quantum computing is causing turmoil in the stock market, as evidenced by interest in stocks such as IonQ Inc. New York Stock Exchange: IONQwhich are up 156% YTD (YTD). Computer and technology pioneer IonQ is widely recognized as a leader in the segment thanks to 102% year-over-year revenue growth, a $54.5 million deal with the Air Force Research Laboratory (AFRL), and financial support from industry giants such as Amazon.com Inc. NASDAQ:AMZN, Lockheed Martin New York Stock Exchange: LMT And Samsung Electronics Co. Ltd. OTsMKTS: SSNLF. IonQ is one of the few companies that has actually built and tested a quantum computer.
Although quantum computing has been around for more than a decade, its applications ranging from drug discovery, cryptography, materials science and complex financial modeling are driving interest in this stock. Trump’s victory and Elon Musk have also fueled speculation about increased interest in quantum computing as a nation. Amazon Web Services announced its Quantum Embark advisory program on November 22, 2024 to help customers prepare for the quantum computing era.
Quantum computing is in its infancy as a viable commercial industry, and no company has profited from it. While IonQ earned $12.6 million in the second quarter of 2024, it also reported an adjusted EBITDA loss of $52.5 million. Most of the “revenue” generated by quantum computing companies typically comes from research grants, funding, and funding . With that in mind, here are two highly speculative and inexpensive quantum computing stocks to keep on your radar if you have risk capital to burn.
D-Wave: Industry Veteran Faces Cash Shortage
D-Wave Quantum today
(As of 11/27/2024 ET)
- 52 week range
- US$0.68
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$3.77
- Target price
- US$2.88
D-Wave Quantum Inc. New York Stock Exchange: QBTS was founded in 1999, making it one of the oldest companies in the industry. Conventional quantum computers use quantum properties such as superposition (particles exist in multiple states at the same time) and entanglement (connected quantum particles change state regardless of distance) to perform calculations in a gate model. D-Wave specializes in quantum computers. Annealing uses quantum fluctuations to find optimal solutions to problems that gradually transition to the lowest energy state. Best suited for solving optimization problems in materials science, logistics and finance.
Quantum Computing as a Service (QCaaS) Generates Revenue
D-Wave has created and even sold quantum computers and generates revenue from its quantum computing as a service (QCaaS) plans. In fact, in the third quarter of 2024, D-Wave’s QCaaS revenue grew 41% YoY to $1.6 million. Unfortunately, net loss also jumped 41% YoY to $22.7 million. The company had 132 clients, including 76 commercial clients, including 27 Forbes Global 2000 companies. Revenue from government customers increased by 800 $000, from research clients by $600,000, and from commercial clients by $200,000.
D-Wave will be cash-strapped in 2025, but will have an output of up to $130 million
D-Wave had $29.3 million at the end of the quarter. The Company continues to have $79.1 million of issuing capacity available under the ATM facility to raise funds and $49.9 million available under the ELOC for issuing capacity, subject to conditions including availability of a sufficient number of registered shares. and the share price is above $1.00. The company expects fourth-quarter revenue to improve and the remaining third quarters to improve, with an adjusted EBITDA loss of less than $54.3 million in fiscal 2024.
D-Wave Quantum Inc. price chart (QBTS) on Thursday, November 28, 2024
Important milestones achieved in the third quarter
The US Department of Defense has deemed D-Wave “acceptable” under its Tradewinds acquisition program. The program is designed to speed up the procurement and implementation of new technologies. The company announces that NTT DOCOMO plans to industrially deploy a hybrid quantum application built using D-Wave technology. D-Wave has completed calibration of the Advantage2 4400-qubit processor, marking a “major development milestone” toward the commercial release of Advantage2.
D-Wave CEO Alan Baratz said: “The annealing of quantum computing continues to drive the commercial adoption of quantum technologies. “Organizations around the world—from Vinci Energies in Europe to NTT DOCOMO in Japan—are realizing the value our technologies can bring right now by driving discovery, driving operational efficiency and achieving measurable results.”
Rigetti Computing: creating quantum processors and computers
Righetti Computers Today
Discards calculations
(As of 11/27/2024 6:05 PM ET)
- 52 week range
- US$1.13
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$3.37
- Target price
- $3.00
Full-stack quantum classical computing company Righetti Computing Inc. NASDAQ: RGTI develops and manufactures quantum processing units (QPUs) under its Novera brand and offers QCaaS plans. Righetti uses superconducting transmon qubits, which are fabricated on chips. The company is focused on creating scalable quantum computers. Its Quantum Cloud System (QCS) integrates into any private, public or hybrid cloud. The UK’s National Quantum Computing Center (NQCC) opened on 25 October 2024 with a fully operational 24-qubit Ankaa-class Rigetti system. NQCC researchers can conduct testing, testing and development of research applications.
Still losing money, but has a longer runway
Righetti reported third-quarter 2024 revenue of $2.4 million and a net loss of $14.3 million. Its revenue comes from government contracts with the Department of Defense and the Department of Energy (DOE). After raising $12 million during the quarter, the company has $92.6 million in cash and cash equivalents.
Rigetti Computing, Inc. Price Chart (RGTI) on Thursday, November 28, 2024
Righetti plans to release a 36-qubit system by mid-2025 and a 100-qubit system by the end of 2025. After that, Righetti plans to develop a 336-qubit Lyra system.
Rigetti Computing CEO Subodh Kulkarni commented: “We believe that superconducting qubits have many advantages over other qubit modalities, including that they are fabricated using well-established semiconductor design and manufacturing technologies. Superconducting qubits also perform faster gate operations than other qubit modalities. Our system’s shutter speed consistently achieves active durations of 60 to 80 nanoseconds, which is four orders of magnitude faster than other modalities such as ion traps and pure atoms.”
Before you consider Rigetti Computing, here’s what you need to hear.
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