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Globe and Mail
11 hours ago
- Business
- Globe and Mail
Why Quantum Computing Inc. Is the Quiet Winner in Quantum Stocks
presents a fascinating paradox for investors to study. On one hand, it's a headline-grabbing technology stock whose valuation often seems disconnected from its current financial results. On the other hand, it is a company that inspires intense bullish conviction and significant doubt simultaneously, as evidenced by a large number of investors betting against it. This has led many to label Quantum Computing Inc. (QCi) as a speculative, all-or-nothing bet on a technology that could be years away from mainstream adoption. This view, however, misses the most compelling part of the company's story. The key to understanding Quantum Computing's immediate potential and its most direct path to generating substantial revenue is not hidden in a futuristic quantum lab. Instead, it is housed within a far more conventional and tangible industrial asset that the company has just brought online. From Theory to Tangible Production In Quantum Computing's earnings report for the first quarter of 2025, the company revealed it had completed the construction of its Quantum Photonic Chip Foundry in Tempe, Arizona. This milestone is crucial, and its importance becomes immediately apparent when contrasted with the company's financials. With a market capitalization recently hovering around $2.79 billion, QCi reported revenue of just $39,000 in its most recent quarter. The new foundry is the company's answer to bridging this vast gap between valuation and revenue. The facility is a commercial manufacturing operation designed to produce Thin-Film Lithium Niobate (TFLN) chips. These are the high-performance engines of modern data transmission. Think of the massive data centers that power artificial intelligence (AI) or the 5G sector, which is connecting our world; they all require components that can move enormous amounts of data faster and more efficiently. TFLN chips are a key solution, prized for their ability to handle immense bandwidth with very low power loss. By opening this foundry, QCi is tapping into a massive and established market. According to multiple industry analyses, the global market for Photonic Integrated Circuits (PICs) is projected to grow from $15.1 billion in 2024 to an estimated $38.4 billion by 2029. Evidence of early demand is already materializing. QCi has secured an offtake agreement with Comtech Telecommunications (NASDAQ: CMTL), a defense and communications firm, to produce TFLN wafers for its satellite communication hardware. Why the Foundry Is a Strategic Masterstroke The decision to become a chip manufacturer provides QCi with powerful strategic advantages that directly address the risks of being a deep-tech hardware startup. It creates a more resilient and defensible business model built on three key pillars: Vertical Integration: By making its own core components, QCi gains complete control over its supply chain, design cycle, and intellectual property. It is not dependent on third-party suppliers for its most critical technology. This allows the company to innovate more quickly and protects it from supply chain disruptions that can sideline other hardware companies. A Diversified Business Model: The foundry offers a second, potentially high-margin revenue stream that is completely independent of the quantum computing timeline. While its competitors are focused almost exclusively on the long-term goal of selling access to quantum computers, QCi can profit today by selling essential components to the broader telecommunications, AI, and defense industries. This provides a financial cushion to fund its ambitious research and development. Validation as a Marketing Tool: The foundry's technology is already being validated in the real world through QCi's products. High-profile sales to customers like BMW, which is using QCi technology to optimize sensor placement on autonomous vehicles, and the Korea Research Institute of Standards and Science (KRISS) prove the performance of the company's photonic systems. Every product success story doubles as a high-profile demonstration of the foundry's capabilities, acting as a powerful marketing tool for its manufacturing services. From Moonshot to Manufacturing For investors, this dual-pronged strategy fundamentally changes the investment thesis. Quantum Computing Inc. is more than just a speculative quantum stock; it is an emerging, vertically integrated photonics manufacturer. The quantum machines represent the company's long-term, high-growth moonshot, but the foundry offers a grounded industrial business with a much more straightforward and nearer-term path to profitability. This hybrid identity provides a potential valuation floor and a strategic resilience that its peers may lack, as its success is not tied exclusively to the unpredictable timeline of quantum adoption. The success of the foundry can de-risk the entire enterprise. Therefore, the single most important indicator for investors to watch over the coming quarters will be the revenue generated by the foundry services division. The rate at which QCi can scale this manufacturing business from a promising start into a significant revenue stream will determine if the company's fundamental value can finally begin to catch up with its impressive, but speculative, stock price. Where Should You Invest $1,000 Right Now? Before you make your next trade, you'll want to hear this. MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list. They believe these five stocks are the five best companies for investors to buy now...
Yahoo
12 hours ago
- Business
- Yahoo
QUBT Rockets 3,144% on Quantum Hype, as Valuation Leaves No Room for Error
Quantum Computing Inc. (QUBT) has experienced extreme volatility, recently surging over 25% in a single week following a public endorsement from Nvidia CEO Jensen Huang, fueling a staggering 3,144% gain over the past year. Investor excitement around a potential inflection point in quantum computing is palpable, though whether that enthusiasm is grounded in near-term reality remains to be seen. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter While I'm bullish on the broader quantum technology narrative, QUBT's current valuation seems to price in near-flawless execution and rapid industry expansion—expectations that leave little room for error. The stock's sharp price swings may appeal to short-term traders and speculators, but as a long-term investor, I'm taking a wait-and-see Neutral approach, preferring to let the sector mature and the company's fundamentals catch up to its hype. QUBT is positioning itself as an emerging contender in the quantum technology space, with a focus on thin-film lithium niobate (TFLN) chips—a key component in photonic quantum computing, which could represent a major breakthrough in the field. The company recently completed its Photonic Chip Foundry in Tempe, Arizona, a strategic move designed to give it an edge in producing specialized chips for quantum applications. By targeting this niche early, QUBT aims to establish a leadership position before larger, better-funded competitors scale up similar capabilities. QUBT has also secured notable partnerships, including contracts with NASA, the Delft University of Technology, and a major automotive manufacturer, signaling growing interest in its technology, despite current revenues remaining modest. That said, the quantum computing race is still in its early stages. Success is far from guaranteed, especially as QUBT faces fierce competition from tech giants and deep-pocketed startups. While the company's strategy is compelling, the path to long-term dominance remains uncertain. Quantum Computing posted surprising numbers for the first quarter of 2025. The company reported a net income of $17 million, or $0.13 per share, representing a remarkable turnaround from the $6.4 million loss it posted in the same quarter last year. However, the impressive change in profit wasn't from selling more products or services. Instead, it came from a $23.6 million non-cash accounting gain related to the valuation of specific financial instruments. Strip away this one-time boost, and Quantum actually lost $8.3 million from operations, an increase from the $6.3 million operating loss they had the year before. The company's gross margins also took a hit, falling from 41% to 33%. Management has attributed this to growing pains that come with operating at such low revenue levels, but it remains a red flag worth watching. On the bright side, the company's financial position is solid. It reported a $166.4 million cash position (boosted by a recent $93.6 million investment), virtually no debt, and a strong balance sheet. This gives it plenty of runway to fund operations and growth initiatives without worrying about burning through its cash anytime soon. While overall market sentiment remains cautious, QUBT has emerged as a favorite among momentum traders and quantum computing enthusiasts. This has created a dynamic where the stock's movements are often fueled more by headlines and sector hype than by underlying business fundamentals. For instance, when Nvidia's CEO made favorable comments about quantum computing, QUBT surged 25% in a single day. However, the recent rally has pushed QUBT's valuation to over 4,500 times its annual revenue—a level that should give even the most bullish growth investor reason to pause. The real test will come when the next headline isn't so favorable. On Wall Street, QUBT stock carries a Moderate Buy consensus rating based on one buy rating provided by Ascendiant. The firm has set QUBT's stock price target at $14, implying approximately 30% downside potential over the next twelve months. QUBT's future success hinges on several factors largely outside its direct control. The quantum computing industry remains in its early stages, with widespread commercial adoption still years away. Key drivers—such as government funding, enterprise investment in advanced computing, and broader tech sector capital flows—will heavily influence whether companies like QUBT can thrive or falter. The stock is also susceptible to shifts in market sentiment. A turn toward prioritizing profitability over growth, or rising interest rates that dampen the appetite for speculative investments, could present serious challenges. Conversely, stronger government backing for quantum innovation, technological breakthroughs, or high-profile commercial partnerships could serve as powerful catalysts for QUBT's growth trajectory. Quantum Computing's strong financial position, traction with potential customers, and strategic positioning in a potentially transformative industry are attractive characteristics. Yet, the stock is priced for perfection, leaving little room for disappointment. While I am bullish on the potential opportunities of quantum computing, the recent run-up in QUBT's price has me inclined to wait for evidence of sustained revenue growth and a clear path to profitability before investing. 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Yahoo
a day ago
- Business
- Yahoo
Align Technology Stock: Is ALGN Underperforming the Healthcare Sector?
With a market cap of $12.7 billion, Tempe, Arizona-based Align Technology, Inc. (ALGN) designs, manufactures, and markets Invisalign clear aligners, Vivera retainers, and iTero intraoral scanners and services in the United States and internationally. Companies worth $10 billion or more are generally described as "large-cap stocks." ALGN falls squarely into this category, with its market cap exceeding this threshold, reflecting its substantial size and influence in the medical instruments & supplies industry. ALGN offers CAD/CAM digital services used in dentistry, orthodontics, and dental records storage through its two operating segments, Clear Aligner and CAD/CAM Services. Is Palantir Stock Poised to Surge Amidst the Israel-Iran Conflict? 'It Has No Utility': Warren Buffett Doesn't Care How High Gold Goes, He Isn't a Buyer OpenAI CEO Sam Altman Says 'We Are Heading Towards a World Where AI Will Just Have Unbelievable Context on Your Life' Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! Shares of ALGN touched their 52-week high of $263.24 on Jul. 18, 2024, and have fallen 31.6% from that peak. They have grown 9.4% over the past three months, outperforming the Health Care Select Sector SPDR Fund's (XLV) 9.3% fall over the same time frame. Shares of the company have declined 25.7% over the past 52 weeks, compared to XLV's 8.7% fall over the same time frame. Moreover, ALGN stock is down 13.7% on a YTD basis, underperforming XLV's 3.2% fall. ALGN shares have been trading below their 200-day moving average for the past year and mostly above their 50-day moving average since late April. On Apr. 30, ALGN shares declined 2.5% following the release of its Q1 results. The company's revenue came in at $979.3 million, beating Wall Street forecasts of $972.8 million. Its adjusted EPS of $1.52 surpassed Wall Street expectations marginally. ALGN expects revenue in the range of $1.05 billion to $1.07 billion for Q2. Its peer, Solventum Corporation (SOLV), has surged 10% in 2025 and 36.2% over the past year, outperforming the stock. Among the 13 analysts covering the ALGN stock, the consensus rating is a 'Moderate Buy.' Its mean price target of $234.25 suggests a 30.1% upside potential from current price levels. On the date of publication, Kritika Sarmah 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
Yahoo
2 days ago
- Sport
- Yahoo
Arizona State football undervalued in ESPN metric, ESPN writer says: 'Fire and motivation'
ESPN has released its Football Power Index (FPI) ratings and projections for the 2025 college football season and you have to scroll down a bit to find the Arizona State Sun Devils football team, the defending Big 12 champions. The Sun Devils are the second Big 12 team in the rankings, coming in at No. 24 in the nation. Kansas State is the lone Big 12 team above them, at No. 21. Advertisement The FPI gives Kenny Dillingham's team a 13% chance to win the Big 12 and a 16.1% chance to return to the College Football Playoff in the upcoming season. Kansas State leads the conference at 19.9% to win the Big 12 and 22.2% to make the playoff. Big 12 football win total odds: Arizona | Arizona State | Baylor | BYU | Cincinnati | Colorado | Houston | Iowa State | Kansas | Kansas State | Oklahoma State | TCU | Texas Tech | UCF | Utah | West Virginia | Big 12 rankings Arizona State football 'undervalued' in ESPN ranking? Is ASU football being undervalued in ESPN's predictive metric? Advertisement Plenty of Arizona State, Big 12 and college football fans would probably answer that question in the affirmative. One ESPN writer does, too. Paolo Uggetti wrote that "it would not shock me to see them (Arizona State) make another playoff run." He wrote of ASU's FPI ranking: "Even though Kenny Dillingham said at Big 12 spring meetings recently that being considered one of the conference's favorites after being picked to finish last in 2024 is 'less fun,' I still think FPI is slightly undervaluing the Sun Devils at No. 24. Sure, they lost star running back Cam Skattebo to the NFL draft, but they also return a quarterback in Sam Leavitt (2,885 yards and 24 touchdowns last year) who could be a Heisman contender, wide receiver Jordyn Tyson (1,101 yards and 10 touchdowns) and defensive back Xavion Alford, among several other starters and stalwarts of last year's Cinderella season. Dillingham won't flinch at now being considered a favorite to win the conference and I imagine he'll have ASU with plenty of fire and motivation come kickoff. It would not shock me to see them make another playoff run." Big 12 football game picks: Arizona | Arizona State | Baylor | BYU | Cincinnati | Colorado | Houston | Iowa State | Kansas | Kansas State | Oklahoma State | TCU | Texas Tech | UCF | Utah | West Virginia | Projected Big 12 standings, records Is Arizona State football undervalued in ESPN's preseason predictive metric? Some people certainly think so, including an ESPN writer. 'Baked-in bias' against Arizona State, Big 12? Heartland College Sports' Bryan Clinton took it a step further, slamming ESPN's FPI for "baked-in bias" regarding Arizona State, and the Big 12 as a whole. Advertisement Part of his argument: "ESPN's FPI is designed to be a predictive tool, balancing returning production, coaching continuity, schedule strength, and performance data. But the model's outputs this year raise serious questions about baked-in bias. Arizona State, the reigning Big 12 champion, is given just a 16.1% chance to make the College Football Playoff. Kansas State — ranked highest among Big 12 teams — has a 22.2% playoff probability, less than Alabama, Georgia, and Texas, all of whom have tougher paths and more roster turnover." Good thing Arizona State gets a chance to prove itself again on the field. The Sun Devils open their much-anticipated 2025 season on Aug. 30 at home against Northern Arizona. College football conference championship odds: Big 12 | Big Ten | SEC | ACC | National championship odds: Big 12 | Big Ten | SEC | ACC | National title odds overall Advertisement Reach Jeremy Cluff at Follow him on X, formerly Twitter @Jeremy_Cluff. Support local journalism: Subscribe to today. This article originally appeared on Arizona Republic: Arizona State football ranking reaction: 'Baked-in' bias vs Big 12?
Yahoo
2 days ago
- Sport
- Yahoo
Arizona State football unveils $20K premium seating for Mountain America Stadium in 2025
Arizona State University has unveiled new field-level loge boxes for fans behind the north end zone at Mountain America Stadium in Tempe for the 2025 ASU football season. In a news release, Sun Devil Athletics described the new premium seating: "This is a view and an exclusive space unlike any other. Stand next to Pat Tillman. Watch the players run by pre and postgame, and witness the action unfold right in front of you." Advertisement The seats, located on both sides of the Pat Tillman statue, will include access to the football complex, which includes all-inclusive food and beverage, as well as access to restrooms and one complimentary parking pass. Big 12 football win total odds: Arizona | Arizona State | Baylor | BYU | Cincinnati | Colorado | Houston | Iowa State | Kansas | Kansas State | Oklahoma State | TCU | Texas Tech | UCF | Utah | West Virginia | Big 12 rankings A view of ASU football's new premium seating at Mountain America Stadium. How much does Arizona State football's new premium seating cost? There are 12 total 4-person boxes available per game. Advertisement ASU is currently asking for $20,000 per 4-person box for the season. The Sun Devils have seven regular-season home games in the upcoming season, so it would cost about $715 per person, per game for a box for the season. The premium seating offers a limited view of the field from ground level, but it will put you close to the action in the north end zone. There also aren't monitors to get a better view of the whole field in the loge seating, but you will basically be on the field for the game. More information is available by emailing premium@ 'Joke': Arizona State football wide receiver Jordyn Tyson's Big 12 ranking slammed Advertisement 'Fire and motivation': Arizona State football undervalued in ESPN metric, ESPN writer says Another view of new premium seating at Arizona State's Mountain America Stadium. Reach Jeremy Cluff at Follow him on X, formerly Twitter @Jeremy_Cluff. Support local journalism: Subscribe to today. This article originally appeared on Arizona Republic: Arizona State football unveils $20K premium seats for 2025 season
