D-Wave Quantum’s stock (NYSE: QBTS) surged 500% in one month, driven by advancements in quantum computing technology and substantial government funding. The company specializes in quantum annealing and aims to tackle complex optimization problems through its unique qubit-based systems.
D-Wave Quantum stock surges 500% amid tech advancements
D-Wave generates most of its revenue through Quantum Computing as a Service (QCaaS) offerings, providing access to systems capable of handling intricate tasks. Its newest systems, including the Advantage model featuring over 5,000 qubits, aim to address challenges in fields such as financial modeling, drug discovery, and materials science. Since inception, D-Wave’s services have attracted a modest revenue stream of $9.4 million over the past year, alongside an operating loss of $74 million.
Valuable industry advancements have fueled excitement in quantum stocks. Notable developments include Google’s Willow chip and Amazon’s Quantum Embark. Additionally, a recent government investment of $2.7 billion has positively impacted the broader quantum computing sector, encompassing companies like D-Wave.
Quantum Computing Inc. (QUBT), also known as QCi, recently garnered attention after securing a contract with NASA’s Goddard Space Flight Center. The contract pertains to its Dirac-3 imaging technology, which will assist NASA in advanced imaging and data processing tasks. QCi’s shares rose by 40% following the announcement, contributing to an impressive growth of 1,600% year-to-date.
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NASA plans to utilize QCi’s entropy quantum optimization machine to tackle complex problems associated with image reconstruction. CEO Dr. William McGann highlighted that the goal is to enable comparisons between QCi’s technology and existing state-of-the-art algorithms on classical computers, showcasing quantum computing’s practical applications in critical scientific fields.
Both companies face ongoing challenges while navigating the rapid evolution of quantum computing technology. Key among them is error management, as complex systems with increasing numbers of qubits tend to produce more errors. This remains a significant barrier to achieving widespread practical applications.
While the potential for technological breakthroughs is considerable, the risks associated with investing in quantum computing stocks remain. Investors are closely observing D-Wave’s future sales potential, which could influence stock prices further if the company manages to increase sales of its quantum systems.
Despite its recent volatility, QBTS stock serves as a reflection of the broader industry’s potential. In the past several years, QBTS saw declines of 86% in 2022 and 39% in 2023. In contrast, the Trefis High-Quality Portfolio, comprising 30 stocks, has provided a more stable investment option, outperforming the S&P 500 consistently.
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Featured image credit: D-Wave Systems
