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Globe and Mail
7 hours ago
- Business
- Globe and Mail
Will Quantum Computing Stocks Soar in the Second Half?
Quantum computing stocks skyrocketed in 2024, with names such as Quantum Computing and Rigetti Computing surging by more than 1,000%. Investors were eager to get in on what could become the next game-changing technology, and revenue growth as well as scientific progress from some of these quantum specialists boosted optimism. Even after those gains, it's very possible that quantum stocks will climb in the second half of this year, and here's why. Why investors buy quantum computing stocks So, first, a quick note about why investors see so much potential in quantum computing. This is because this type of computing, based on quantum mechanics, makes it possible to solve problems that today's classic computers can't handle. Quantum computing can do this by using qubits -- instead of the bits used by today's computers -- to store data. And while bits store and process data as zeros or 1s, qubits can represent a zero, a one, or both at the same time. This allows for tremendous scaling, and as a result, a problem that would take a classic computer 1,000 years to solve may take a quantum machine about five minutes. Right now, quantum companies offer hardware and services to customers, but we're still in the early stages of development. Experts have said that truly useful quantum computers are several years away. The good news is that this means these companies have plenty of room to run when it comes to revenue growth and share price performance. It's clear that if quantum companies reach their development goals, these computers could revolutionize many industries. Quantum stocks in 2024 and 2025 All of this helped quantum computing pure-play companies climb last year. The bull market and optimism about the economy ahead offered the perfect environment for growth stocks to excel. But in recent months, concerns about President Donald Trump's import tariff plan weighed on these players. The idea was that tariffs could lead to higher prices at home, prompting customers of quantum companies to rein in their spending. But over the past few weeks, progress in trade talks and even initial deals with the U.K. and China have made investors more optimistic about the future. And corporate earnings haven't suggested any slowdown in spending on technology -- in fact, companies continue to reiterate their commitments to such projects. This backdrop supports the idea of more gains for quantum companies in the second half, especially for certain players such as Rigetti and IonQ, which haven't yet fully recovered -- they're down 25% and 5%, respectively, year to date. And if they show some growth in revenue in the coming quarters, this could act as a positive catalyst for share performance, too. Can D-Wave keep soaring? But this doesn't mean that stocks that have continued to advance, such as D-Wave Quantum (NYSE: QBTS), which is heading for an increase of more than 80%, won't keep on rising. For example, D-Wave just recently released its Advantage2 quantum computer, which is accessible both on the cloud and on-premises. More than 20 million customer problems have been run through the prototype, and the company says the computer is now ready for use in areas such as materials simulation and artificial intelligence (AI). Uptake of this new platform and further revenue gains -- D-Wave's revenue last quarter soared 500% to a record $15 million -- could offer this highflier an additional boost. Of course, it's important to keep in mind that these pure-play quantum companies aren't yet profitable and are involved in a relatively new, cutting-edge technology, and that involves some risk. Any economic headwinds could hurt investors' appetite for these sorts of players. These companies depend on a strong economy, as this increases the likelihood that potential customers will spend on their products and services. And investors generally feel more comfortable getting in on growth stocks when the economy is thriving. So, the economic situation in the second half could determine the near-term direction of these players. But right now, there's reason to be optimistic that the U.S. trade talks, along with some better-than-expected economic data, signal better days ahead -- and that the worst-case scenario of a recession and tough times for corporate earnings will be averted. With this in mind, quantum computing stocks could be set to soar in the second half as investors look to get in on the next big technology that could deliver explosive returns. Should you invest $1,000 in D-Wave Quantum right now? Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%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 June 9, 2025
Yahoo
8 hours ago
- Business
- Yahoo
Will Quantum Computing Stocks Soar in the Second Half?
Some quantum computing stocks delivered gains of more than 1,000% last year. The technology has game-changing potential, and quantum companies may thrive if the economic backdrop is supportive. 10 stocks we like better than D-Wave Quantum › Quantum computing stocks skyrocketed in 2024, with names such as Quantum Computing and Rigetti Computing surging by more than 1,000%. Investors were eager to get in on what could become the next game-changing technology, and revenue growth as well as scientific progress from some of these quantum specialists boosted optimism. Even after those gains, it's very possible that quantum stocks will climb in the second half of this year, and here's why. So, first, a quick note about why investors see so much potential in quantum computing. This is because this type of computing, based on quantum mechanics, makes it possible to solve problems that today's classic computers can't handle. Quantum computing can do this by using qubits -- instead of the bits used by today's computers -- to store data. And while bits store and process data as zeros or 1s, qubits can represent a zero, a one, or both at the same time. This allows for tremendous scaling, and as a result, a problem that would take a classic computer 1,000 years to solve may take a quantum machine about five minutes. Right now, quantum companies offer hardware and services to customers, but we're still in the early stages of development. Experts have said that truly useful quantum computers are several years away. The good news is that this means these companies have plenty of room to run when it comes to revenue growth and share price performance. It's clear that if quantum companies reach their development goals, these computers could revolutionize many industries. All of this helped quantum computing pure-play companies climb last year. The bull market and optimism about the economy ahead offered the perfect environment for growth stocks to excel. But in recent months, concerns about President Donald Trump's import tariff plan weighed on these players. The idea was that tariffs could lead to higher prices at home, prompting customers of quantum companies to rein in their spending. But over the past few weeks, progress in trade talks and even initial deals with the U.K. and China have made investors more optimistic about the future. And corporate earnings haven't suggested any slowdown in spending on technology -- in fact, companies continue to reiterate their commitments to such projects. This backdrop supports the idea of more gains for quantum companies in the second half, especially for certain players such as Rigetti and IonQ, which haven't yet fully recovered -- they're down 25% and 5%, respectively, year to date. And if they show some growth in revenue in the coming quarters, this could act as a positive catalyst for share performance, too. But this doesn't mean that stocks that have continued to advance, such as D-Wave Quantum (NYSE: QBTS), which is heading for an increase of more than 80%, won't keep on rising. For example, D-Wave just recently released its Advantage2 quantum computer, which is accessible both on the cloud and on-premises. More than 20 million customer problems have been run through the prototype, and the company says the computer is now ready for use in areas such as materials simulation and artificial intelligence (AI). Uptake of this new platform and further revenue gains -- D-Wave's revenue last quarter soared 500% to a record $15 million -- could offer this highflier an additional boost. Of course, it's important to keep in mind that these pure-play quantum companies aren't yet profitable and are involved in a relatively new, cutting-edge technology, and that involves some risk. Any economic headwinds could hurt investors' appetite for these sorts of players. These companies depend on a strong economy, as this increases the likelihood that potential customers will spend on their products and services. And investors generally feel more comfortable getting in on growth stocks when the economy is thriving. So, the economic situation in the second half could determine the near-term direction of these players. But right now, there's reason to be optimistic that the U.S. trade talks, along with some better-than-expected economic data, signal better days ahead -- and that the worst-case scenario of a recession and tough times for corporate earnings will be averted. With this in mind, quantum computing stocks could be set to soar in the second half as investors look to get in on the next big technology that could deliver explosive returns. Before you buy stock in D-Wave Quantum, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and D-Wave Quantum 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — 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 Adria Cimino has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Will Quantum Computing Stocks Soar in the Second Half? was originally published by The Motley Fool Sign in to access your portfolio
Globe and Mail
12 hours ago
- Business
- Globe and Mail
The Smartest Way to Play Quantum Computing May Already Be in Your Portfolio
While investors chase quantum moonshots like Rigetti Computing -- up over 1,100% over the prior 12 months -- and IonQ -- up nearly 500% over the same period -- Amazon (NASDAQ: AMZN) is quietly building the infrastructure to profit no matter who wins the quantum computing race. 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 » RGTI Total Return Level data by YCharts. The e-commerce giant's Amazon Web Services (AWS) Braket platform already hosts quantum computing services from multiple providers, making it the Switzerland of the quantum wars. But Amazon isn't just playing host; it's also developing its quantum hardware, creating two distinct paths to profit from what could become a trillion-dollar market. This dual approach makes Amazon the most overlooked opportunity in the market for quantum computing. AI is accelerating quantum timelines Conventional wisdom says practical quantum computing remains decades away. Most experts point to persistent challenges with error rates, qubit stability, and the need for near-absolute-zero operating temperatures. They're probably wrong. What skeptics often overlook is the recursive learning potential of artificial intelligence (AI). When AI systems can design better AI systems, progress compounds exponentially. DeepMind's AlphaFold solved protein folding -- a 50-year challenge -- in months. The same recursive improvement cycle is about to hit quantum computing. IBM plans to deliver its fault-tolerant quantum computer, Starling, by 2029 -- years ahead of previous predictions. The company says its breakthrough error-correction techniques will enable a system 20,000 times more powerful than today's quantum computers. This accelerated timeline reflects how AI is helping solve quantum's biggest challenges faster than expected. AWS Braket: The quantum cloud marketplace While pure-play quantum companies race to build better hardware, Amazon has taken a different approach. AWS Braket, launched in 2019, enables developers to access quantum computers from D-Wave, IonQ, Rigetti Computing, and others through the cloud. Think of it as the App Store for quantum computing -- Amazon profits regardless of which hardware ultimately wins. This isn't Amazon's first platform rodeo. AWS generated $107.6 billion in revenue in 2024, crossing the $100 billion mark for the first time. Braket follows the same playbook, charging for access time while avoiding the massive research and development (R&D) costs of developing quantum hardware alone. Amazon's in-house hardware gives it a dual advantage Amazon isn't content to be just a middleman. The company's Center for Quantum Computing at Caltech is developing its own quantum processors, giving it a hedge in case proprietary hardware becomes the key differentiator. It's the best of both worlds: platform fees today, breakthrough potential tomorrow. Yes, quantum stocks have exploded. Companies like Rigetti Computing and IonQ sport billion-dollar valuations despite minimal revenue. Quantum Computing has surged by over 3,000% in the past year. But Amazon offers something these pure plays can't: a profitable business generating nearly $700 billion in annual revenue. The numbers tell the story. Over $1.25 billion poured into quantum start-ups in Q1 2025 alone -- double the amount from the previous year. Moreover, Nvidia CEO Jensen Huang reversed course, calling quantum computing "imminent" rather than decades away. This admission added significant fuel to the quantum rally earlier this year. Real customers, real revenue, no hype required Unlike pure-play quantum companies burning cash on R&D, Amazon's Braket already serves paying customers. Volkswagen uses it for traffic optimization research. Goldman Sachs explores quantum Monte Carlo simulations for derivatives pricing. Roche investigates drug discovery applications. These aren't science projects. Fortune 500 companies are spending real money to explore quantum's potential. As algorithms improve and hardware matures, experimental budgets will transform into production workloads -- all running on AWS. The beauty of Amazon's model is its optionality. If quantum computing takes another decade to mature, AWS will keep printing money from traditional cloud services. If breakthroughs accelerate, Amazon will capture the infrastructure spending boom. Heads you win, tails you don't lose. The valuation case At just 24 times 2027 projected earnings, the market isn't pricing in quantum's massive potential upside for this tech stock. If quantum becomes a $100 billion market by 2035 and AWS captures even 30%, that's $30 billion in high-margin revenue -- comparable to AWS's entire business five years ago. With AWS operating margins above 35%, quantum could add meaningful earnings power. Yet, this optionality is barely reflected in the stock's current valuation. Investors looking for quantum upside without the moonshot risk don't need to chase cash-flow-negative companies. Amazon offers something far more powerful -- a platform that profits from the entire ecosystem, combined with a mountain of revenue. In the next wave of disruption, the real winner may not be the one building the quantum computer, but the one powering them all. Should you invest $1,000 in Amazon right now? Before you buy stock in Amazon, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%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 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. George Budwell has positions in D-Wave Quantum, IonQ, Nvidia, and Rigetti Computing. The Motley Fool has positions in and recommends Amazon, Goldman Sachs Group, International Business Machines, and Nvidia. The Motley Fool recommends Roche Holding AG and Volkswagen Ag. The Motley Fool has a disclosure policy.
Yahoo
12 hours ago
- Business
- Yahoo
The Smartest Way to Play Quantum Computing May Already Be in Your Portfolio
While pure-play quantum stocks have soared 500% or more recently, the real winner may be hiding in plain sight with a proven business model and multiple ways to profit. The company's dual approach captures both the hardware development upside and the cloud infrastructure opportunity that will power the quantum revolution. Artificial intelligence could compress decades of quantum research into years, creating a massive opportunity for the platform that hosts it all. 10 stocks we like better than Amazon › While investors chase quantum moonshots like Rigetti Computing -- up over 1,100% over the prior 12 months -- and IonQ -- up nearly 500% over the same period -- Amazon (NASDAQ: AMZN) is quietly building the infrastructure to profit no matter who wins the quantum computing race. The e-commerce giant's Amazon Web Services (AWS) Braket platform already hosts quantum computing services from multiple providers, making it the Switzerland of the quantum wars. But Amazon isn't just playing host; it's also developing its quantum hardware, creating two distinct paths to profit from what could become a trillion-dollar market. This dual approach makes Amazon the most overlooked opportunity in the market for quantum computing. Conventional wisdom says practical quantum computing remains decades away. Most experts point to persistent challenges with error rates, qubit stability, and the need for near-absolute-zero operating temperatures. They're probably wrong. What skeptics often overlook is the recursive learning potential of artificial intelligence (AI). When AI systems can design better AI systems, progress compounds exponentially. DeepMind's AlphaFold solved protein folding -- a 50-year challenge -- in months. The same recursive improvement cycle is about to hit quantum computing. IBM plans to deliver its fault-tolerant quantum computer, Starling, by 2029 -- years ahead of previous predictions. The company says its breakthrough error-correction techniques will enable a system 20,000 times more powerful than today's quantum computers. This accelerated timeline reflects how AI is helping solve quantum's biggest challenges faster than expected. While pure-play quantum companies race to build better hardware, Amazon has taken a different approach. AWS Braket, launched in 2019, enables developers to access quantum computers from D-Wave, IonQ, Rigetti Computing, and others through the cloud. Think of it as the App Store for quantum computing -- Amazon profits regardless of which hardware ultimately wins. This isn't Amazon's first platform rodeo. AWS generated $107.6 billion in revenue in 2024, crossing the $100 billion mark for the first time. Braket follows the same playbook, charging for access time while avoiding the massive research and development (R&D) costs of developing quantum hardware alone. Amazon isn't content to be just a middleman. The company's Center for Quantum Computing at Caltech is developing its own quantum processors, giving it a hedge in case proprietary hardware becomes the key differentiator. It's the best of both worlds: platform fees today, breakthrough potential tomorrow. Yes, quantum stocks have exploded. Companies like Rigetti Computing and IonQ sport billion-dollar valuations despite minimal revenue. Quantum Computing has surged by over 3,000% in the past year. But Amazon offers something these pure plays can't: a profitable business generating nearly $700 billion in annual revenue. The numbers tell the story. Over $1.25 billion poured into quantum start-ups in Q1 2025 alone -- double the amount from the previous year. Moreover, Nvidia CEO Jensen Huang reversed course, calling quantum computing "imminent" rather than decades away. This admission added significant fuel to the quantum rally earlier this year. Unlike pure-play quantum companies burning cash on R&D, Amazon's Braket already serves paying customers. Volkswagen uses it for traffic optimization research. Goldman Sachs explores quantum Monte Carlo simulations for derivatives pricing. Roche investigates drug discovery applications. These aren't science projects. Fortune 500 companies are spending real money to explore quantum's potential. As algorithms improve and hardware matures, experimental budgets will transform into production workloads -- all running on AWS. The beauty of Amazon's model is its optionality. If quantum computing takes another decade to mature, AWS will keep printing money from traditional cloud services. If breakthroughs accelerate, Amazon will capture the infrastructure spending boom. Heads you win, tails you don't lose. At just 24 times 2027 projected earnings, the market isn't pricing in quantum's massive potential upside for this tech stock. If quantum becomes a $100 billion market by 2035 and AWS captures even 30%, that's $30 billion in high-margin revenue -- comparable to AWS's entire business five years ago. With AWS operating margins above 35%, quantum could add meaningful earnings power. Yet, this optionality is barely reflected in the stock's current valuation. Investors looking for quantum upside without the moonshot risk don't need to chase cash-flow-negative companies. Amazon offers something far more powerful -- a platform that profits from the entire ecosystem, combined with a mountain of revenue. In the next wave of disruption, the real winner may not be the one building the quantum computer, but the one powering them all. 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 $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — 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. George Budwell has positions in D-Wave Quantum, IonQ, Nvidia, and Rigetti Computing. The Motley Fool has positions in and recommends Amazon, Goldman Sachs Group, International Business Machines, and Nvidia. The Motley Fool recommends Roche Holding AG and Volkswagen Ag. The Motley Fool has a disclosure policy. The Smartest Way to Play Quantum Computing May Already Be in Your Portfolio was originally published by The Motley Fool 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
Globe and Mail
a day ago
- Business
- Globe and Mail
RGTI, IONQ: 2 ‘Strong Buy' Russell 2000 Stocks Analysts Say You Shouldn't Miss
Small-cap stocks often fly under the radar, but some hold massive upside potential, especially when backed by bullish analyst sentiment. In this context, two standout names from the Russell 2000, Rigetti Computing (RGTI) and IonQ (IONQ) have both earned Strong Buy ratings from Wall Street. Both stocks are part of the quantum computing space and present high-risk, high-reward opportunities for investors. Confident Investing Starts Here: Let's dive into the details. Is RGTI Stock a Good Buy? Rigetti is an early-stage quantum computing company that's gaining attention for its innovative technology and government partnerships. The company's superconducting systems perform ultra-fast operations in just 60–80 nanoseconds, perfect for tasks like AI and financial modeling. With full control over its tech stack, from chip design to cloud access, the company is well-positioned for scalable growth. However, Rigetti's financial story is challenging. In Q1, revenue plunged 52% to $1.47 million, and operating loss came in at $21.6 million. Despite being unprofitable, analysts remain optimistic about its long-term potential in the emerging quantum sector. Rigetti Computing Stock Forecast Last month, Craig-Hallum's five-star-rated analyst Richard Shannon maintained his Buy rating on RGTI stock. Interestingly, all five analysts who rated the stock gave it a Buy, according to TipRanks. Taken together, Rigetti's stock forecast of $15.0 implies an upside of about 32%. Meanwhile, RGTI stock has declined by over 25% year-to-date. See more RGTI analyst ratings Is IonQ a Good Stock to Buy? IonQ, a pure-play quantum computing company using trapped-ion technology, offers its systems through major cloud platforms. It has emerged as a standout in the sector, with its stock soaring over 450% in the past year. The company is ahead of competitors in getting its quantum systems to market, having already sold hardware to Amazon's (AMZN) AWS and Google (GOOGL) Cloud. Its systems feature all-to-all connectivity and boast an industry-leading 99.9% two-qubit gate fidelity, meaning highly accurate results. With a few units already sold and rising demand, more launches are expected soon. Notably, two-qubit gate fidelity measures how accurately a quantum computer links two qubits. IonQ's 99.9% fidelity signals low error rates, key for building reliable, scalable systems. What Is IonQ Forecast for 2025? This month, top analysts from Needham, Benchmark, and Craig-Hallum reiterated their Buy ratings on IONQ stock. Overall, four out of five analysts currently covering the stock have issued Buy recommendations. Meanwhile, the average IonQ shareprice target of $43 suggests an 8.5% upside from current levels. See more IONQ analyst ratings
