Latest news with #quantumcomputing
Yahoo
3 hours ago
- Business
- Yahoo
If I Could Only Buy 1 Quantum Computing Stock, This Would Be It (Hint: It's Not IonQ)
Companies such as IonQ, Rigetti Computing, and D-Wave Quantum are among some of the more popular quantum computing stocks right now. Despite robust share price returns, Nvidia is quietly building a quantum computing business that investors might not want to overlook. While Nvidia stock has been rising lately, valuation trends suggest the stock is still reasonably priced. 10 stocks we like better than Nvidia › Over the last year, a quantum-computing-themed fund called the Defiance Quantum ETF has rocketed by 41%. Among some of the biggest contributors to these gains are popular quantum computing stocks such as IonQ, whose shares have soared by 394% over the last year -- as well as Rigetti Computing and D-Wave Quantum, both of which have witnessed share price gains in excess of 1,000%. With such robust returns, these three red-hot quantum computing stocks might seem like no-brainers. Nevertheless, I have another company on my radar that I think will outperform these stocks in the long run. Let's explore how Nvidia (NASDAQ: NVDA) is starting to emerge as an interesting opportunity in the quantum computing landscape. More importantly, I'll detail why the company is my top pick in the space and assess if the stock is a good buy right now. Nvidia reports its revenue into five major buckets: data center, gaming, professional visualization, automotive, and other. Today, nearly 90% of the company's revenue stems from the data center segment. This makes sense, as cloud hyperscalers such as Microsoft, Alphabet, and Amazon, as well as other major AI developers, including Meta Platforms and Oracle, have been on a relentless buying spree for Nvidia's chips over the last couple of years as they continue investing in data center infrastructure. What investors may not realize, however, is that Nvidia isn't just a hardware company. It also has a thriving software unit that integrates tightly with the GPU business. The company's CUDA programming platform complements the chip business -- essentially creating an ecosystem of AI-powered software and hardware. This tight integration provides Nvidia with a competitive advantage over the competition, making it challenging for customers to switch to alternative platforms. This savvy business model has put Nvidia ahead of the pack when it comes to being the vendor of choice for generative AI development. Nvidia is already parlaying the CUDA application to quantum computing, aptly naming the program CUDA-Q. Let's explore why Nvidia's pursuit of quantum computing could be a lucrative move for the company. While Nvidia maintains a sizable lead over its competition in the chip landscape, I am concerned that semiconductors are becoming increasingly commoditized. Many of Nvidia's own customers are investing in custom silicon solutions. Meanwhile, Advanced Micro Devices continues to show impressive innovation with its own GPU architectures. I see the rise of quantum computing as an opportunity for Nvidia to diversify its business beyond AI data centers. Moreover, I think continuing to offer additional software applications through CUDA should help Nvidia maintain a healthy profit margin profile -- especially as the chip landscape begins to experience more competitive forces. As I write this (June 16), Nvidia is trading at a forward price-to-earnings (P/E) ratio of 33.7. This isn't exactly dirt cheap. For reference, the average forward P/E across the S&P 500 is around 22. What I am more focused on are the broader trends across Nvidia's valuation. Per the chart above, Nvidia's forward P/E multiple experienced notable contraction throughout most of this year. While Nvidia recovered from the initial decline back in January following the DeepSeek saga, the stock took another, more prolonged hit around April -- during the time of the President's initial tariff announcements. As investors can see, though, Nvidia has been experiencing some valuation expansion over the last month or so following a solid first-quarter earnings report, in combination with some net positives on the tariff negotiation front. Yet even with the recent buying, Nvidia remains a much cheaper stock today than it was a year ago based on forward P/E trends. While there is some momentum fueling the share price right now, I would still encourage investors to consider scooping up shares. Overall, Nvidia stock looks reasonably valued. Furthermore, with yet another multibillion-dollar market in the form of quantum computing representing an opportunity for the company to maintain its lead over the competition, the long-run narrative around Nvidia remains compelling. Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nvidia 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 $659,171!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $891,722!* Now, it's worth noting Stock Advisor's total average return is 995% — 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. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool's board of directors. Adam Spatacco has positions in Alphabet, Amazon, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has positions in and recommends Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Oracle. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. If I Could Only Buy 1 Quantum Computing Stock, This Would Be It (Hint: It's Not IonQ) 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
Yahoo
6 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. Disclaimer & DisclosureReport an Issue 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
Yahoo
8 hours ago
- Business
- Yahoo
Why IBM Is the Best Quantum Computing Stock to Buy Right Now
IBM is a quantum computing pioneer. The company expects to reach true quantum advantage by 2026 and have a large fault-tolerant system in place by 2029. With a long track record and a clear roadmap, IBM is emerging as a quantum computing leader. 10 stocks we like better than International Business Machines › A future quantum computer could potentially solve problems that are essentially impossible for even the most powerful supercomputer. The magic comes from the nature of quantum physics. While traditional computers operate on bits that can be in only one of two states, a quantum qubit is probabilistic, occupying some combination of those two states. This property opens the door to exponentially faster computations. Today's quantum computers generally aren't capable of solving real-world problems quicker than traditional computers. They are capable of performing some types of computations faster, but these computations are more toy problems than anything else. When Alphabet's Google unveiled its Willow quantum chip last year, it claimed that Willow could perform a particular benchmark in five minutes that would take a supercomputer 10 septillion years. Unfortunately, that benchmark has no known real-world applications. Another problem is error correction. Qubits are fragile, and errors are inevitably introduced over the course of a computation. Those errors must be prevented, corrected, or otherwise mitigated for long enough for a computation to be completed. Microsoft made some noise on this front earlier this year with its Majorana 1 quantum chip, which uses exotic particles to create more robust qubits. However, the company is in the early stages of scaling this technology, and it could very well be many years before anything useful comes out of it. International Business Machines (NYSE: IBM), a quantum computing pioneer, now sees a path to full-scale quantum error correction by 2029 and true quantum advantage by the end of 2026. The company has a clear roadmap, and if it can deliver, quantum computing could turn into a major business for the century-old tech giant. IBM is taking a modular approach on its path to the holy grail of quantum computing. This year, IBM will release Nighthawk, its new quantum process with 120 qubits and 5,000 quantum gates. Over the next few years, successive versions of Nighthawk will increase the number of gates, culminating in 2028 with a 15,000-gate version that can be linked together in groups of nine. IBM believes Nighthawk will be able to achieve true quantum advantage. Nighthawk is a stepping stone toward Starling, the fault-tolerant quantum computer planned for 2028. To build Starling, IBM will release three iterations of quantum chips over the next few years that include the necessary technology to make Starling a reality. IBM Quantum Loon comes this year, featuring greater connectivity than the company's current quantum chips. IBM Quantum Kookaburra comes in 2026, bringing the ability to store information and process it with an attached processing unit. And IBM Quantum Cockatoo is set for 2027, allowing entanglement between modules. Starling, which will feature 200 logical qubits and 100 million quantum gates, will be built in 2028 and deliver fault-tolerance by 2029, according to IBM's roadmap. Plenty of companies are racing toward viable quantum computing, but IBM has two things that make it unique: a decades-long track record researching and building quantum computers, and a clear roadmap to reach fault-tolerance and true quantum advantage. While it's impossible to predict how large of an opportunity quantum computing could be for IBM, one estimate puts the economic value generated by quantum computing at $850 billion by 2040, with the market for quantum hardware and software potentially worth $170 billion. If IBM can truly pull ahead of its rivals and deliver real-world results with its quantum computers by the end of the decade, it will be in a great position to reap the rewards of the quantum computing revolution. IBM's valuation today looks reasonable considering the enormous potential of quantum computing. Based on the company's outlook for 2025, IBM stock trades for roughly 19 times free cash flow. While the stock isn't as cheap as it was a few years ago, IBM still looks like a solid buy. The company's hybrid cloud and artificial intelligence (AI) businesses are driving growth today, and quantum computing has the potential to drive growth in the 2030s and beyond. Before you buy stock in International Business Machines, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and International Business Machines 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 $658,297!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $883,386!* Now, it's worth noting Stock Advisor's total average return is 992% — 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 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Timothy Green has positions in International Business Machines. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy. Why IBM Is the Best Quantum Computing Stock to Buy Right Now was originally published by The Motley Fool Sign in to access your portfolio
Yahoo
11 hours ago
- Business
- Yahoo
Project Eleven Raises $6M to Defend Bitcoin From the Coming Quantum Threat
Project Eleven has raised $6 million to protect bitcoin BTC from the existential threat of quantum computing, as fears mount that the network's core cryptography could one day be rendered obsolete. The round was co-led by Variant Fund and Quantonation, with participation from Castle Island Ventures alongside founding investors Nebular and Formation, according to a release. "As quantum computing capabilities advance, the threat to systems like Bitcoin is no longer theoretical, it's imminent," Alex Pruden, CEO of Project Eleven, said in a release. "This funding allows us to stay ahead of that curve, building the tools, standards, and ecosystem required to ensure digital assets remain secure in a post-quantum world,' Pruden said. Earlier this year, Project Eleven launched the Q-Day Prize, offering 1 BTC to the first team that can break Bitcoin's elliptic curve cryptography (ECC) using a quantum computer. 'We define Q-Day as the moment when quantum computers become capable of breaking the elliptic-curve cryptography that secures private keys used by Bitcoin,' said Conor Deegan, co-founder and VP of Engineering at Project Eleven in a release. Project Eleven also announced it is launching Yellowpages a post-quantum cryptographic registry where users can generate hybrid key pairs, create proofs linking them to their existing BTC addresses, and timestamp those proofs on a verifiable ledger. Yellowpages works by having users generate a new key pair using post-quantum cryptographic algorithms, such as lattice-based systems, that are resistant to the types of attacks a future quantum computer could launch. They then create a cryptographic proof linking this quantum-safe key to their existing BTC address. That proof is timestamped and stored in Yellowpages, a public registry hosted off-chain. It doesn't move funds or alter anything on the Bitcoin blockchain, but creates a verifiable paper trail of wallet ownership that could serve as a fallback if elliptic curve cryptography is ever broken. 'Preparing ahead of Q-Day means ensuring that digital assets remain secure and verifiable in a post-quantum world. With Yellowpages, we're giving users free, audited, and open-source tools to proactively establish quantum-resilient ownership today,' Deegan continued. The approach contrasts with solutions like QRAMP, a Bitcoin Improvement Proposal that mandates a hard-fork migration to quantum-safe addresses. While effective in theory, QRAMP and similar proposals face a high barrier to adoption because they would require consensus, a tall order in a governance environment known for caution. Ethereum's multi-year journey to Proof-of-Stake and Bitcoin's recent OP_RETURN debate are reminders of just how slow protocol change can be, and some analysts have warned that the slow governance process is a threat itself. This route would bypass the need for consensus, while also facilitating the mass adoption of quantum defenses. As Rick Maeda of Presto Research recently warned in an interview with CoinDesk, quantum defenses must be built linearly, not reactively, because by the time the threat is real, it's already too late. Project Eleven's latest moves suggest some in the crypto industry are taking this threat seriously while acknowledging the weakness of current methods.
Yahoo
12 hours ago
- Business
- Yahoo
IonQ (NYSE:IONQ) Announces Quantum Breakthrough in Protein Folding and Computation
IonQ recently announced a significant achievement with Kipu Quantum, solving the most complex protein folding problem on a quantum computer. This breakthrough likely contributed to the company's impressive 87% share price gain last quarter. The successful partnership with AstraZeneca and others to accelerate drug development, and collaborations with Toyota Tsusho and KISTI, bolster its global presence. Additionally, positive earnings projections and leadership changes further supported market confidence. While the broader market saw a modest yearly gain, IonQ's advancements in quantum computing positioned it to significantly outperform industry trends during the quarter. We've identified 5 warning signs for IonQ (1 is significant) that you should be aware of. AI is about to change healthcare. These 22 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early. Looking at the broader picture, investors in IonQ have seen extraordinary returns over a three-year period, with the company's total shareholder returns climbing by over 694%. This performance towers above the US Tech industry's past year return of -9% and the general US market, which returned 9.9% over the same period. Such a return underscores the market's current enthusiasm for IonQ's innovative breakthroughs in quantum computing, particularly its solutions like the recent protein folding achievements which hold great promise for drug discovery applications. The company's recent advancements and strategic partnerships suggest strong potential for future revenue growth, projected at 41% per year. However, IonQ remains unprofitable, with its Q1 earnings reflecting a net loss of US$32.25 million, and forecasts indicating ongoing losses in the upcoming years. Analyst consensus places a fair value target at US$43, slightly above the current share price, indicating a restrained outlook relative to recent market exuberance. Nevertheless, IonQ maintains a strong trajectory in revenue growth, supported by their global expansion and successful collaborations with industry giants like AstraZeneca, which could bolster its future market position. Upon reviewing our latest valuation report, IonQ's share price might be too optimistic. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include NYSE:IONQ. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
