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## Quantum Computing Sector Experiences Notable Gains U.S. equities witnessed a robust performance in the quantum computing sector, with several key players recording substantial advances. **Rigetti Computing (RGTI)** led with an 18.25% increase, followed by **D-Wave Quantum Inc (QBTS)** at 13.97%, **IONQ Inc (IONQ)** at 10.32%, and **Quantum Computing Inc (QUBT)** with a 5.32% gain in a 24-hour period. These daily movements underscore a broader bullish sentiment that has propelled some of these stocks to extraordinary yearly returns, with **Rigetti** surging 4,620% and **D-Wave** advancing 3,075% over the last 12 months. ## Commercial Milestones Drive Investor Optimism The recent rally is largely attributable to tangible commercial breakthroughs and project validations. **Rigetti Computing** announced a **$5.7 million** purchase order for two of its 9-qubit Novera quantum computing systems. These systems, slated for delivery in the first half of 2026, represent a significant revenue event and a strong commercial validation, following a prior **$5.8 million** contract from the U.S. Air Force Research Laboratory for quantum networking research. Simultaneously, **D-Wave Quantum Inc.** showcased a successful
## Quantum Computing Sector Sees Upgraded Analyst Price Targets Amid Rapid Advancement Following the recent **Quantum World Congress**, **B. Riley** analyst **Craig Ellis** has significantly raised price targets for key players in the quantum computing sector, including **IonQ (IONQ)**, **D-Wave Quantum (QBTS)**, and **Rigetti Computing (RGTI)**. This adjustment reflects a more optimistic outlook on the industry's accelerating technological progress and commercial viability. ## Detailed Price Target Revisions and Market Performance **IonQ, Inc. (IONQ)**, a developer of general-purpose quantum computing systems, saw its price target increased from **$75 to a Street-high of $100** by B. Riley, while maintaining a Buy rating. The stock has experienced an **833% gain** over the past year and a **61% surge** in the past week, currently trading around **$67.63**. The company reported an **81.6% year-over-year revenue increase** for the second quarter and has achieved **100% revenue growth** in each of the last three years. IonQ’s strategic acquisitions, such as **Oxford Ionics**, and expanding cloud partnerships with **Amazon Web Services**, **Microsoft Azure Quantum**, and **Google Cloud Marketplace** are key drivers. Its market capitalization stands at **$21.93 billion**, with a Price-to-Earnings (P/E) ratio of **-36.76**, indicating its growth-phase unprofitability. **Rigetti Computing, Inc. (RGTI)**, known for its quantum-classical infrastructure, had its price target boosted from **$19 to $35**, also with a maintained Buy rating. This upgrade followed the company securing a **$5.8 million contract** with the **U.S. Air Force Research Laboratory** to advance superconducting quantum networking. Rigetti’s stock has demonstrated a remarkable **4,182% increase** over the past year, though it traded over 6% lower on the Monday following the analyst upgrade. **D-Wave Quantum, Inc. (QBTS)**, a pure-play quantum computing company focused on quantum annealing, saw its price target raised from **$22 to $33**, retaining a Buy rating. This represents a potential upside exceeding 20%. D-Wave’s stock has surged by **2,715%** over the past year. The company, despite generating revenue (barely over **$15 million** for H1 2025), faces significant financial challenges, reporting a **net loss of $167.3 million** in Q2 2025. Its market capitalization is nearly **$9.5 billion**, leading to a valuation of over **350x forward sales**, which is considered extraordinary. The global quantum computing market is projected for substantial expansion, from **$3.52 billion in 2025** to approximately **$20.20 billion by 2030**, reflecting a compound annual growth rate (**CAGR**) of **41.8%**. This growth is driven by opportunities in diverse fields such as drug discovery, financial modeling, and cybersecurity. ## Market Reaction and Driving Factors The market's bullish response to these quantum computing stocks is largely attributable to tangible technological breakthroughs and increasing commercial applications. Analyst Craig Ellis noted that the industry’s advancements are progressing faster than even prior optimistic forecasts, with clear signs that a "frontier scientific field is quickly evolving into a sector with practical applications." **Quantum Computing as a Service (QCaaS)**, offering cloud-based access to quantum systems, is lowering entry barriers and enabling broader adoption across industries. Increasing investments from governments and enterprises, alongside strategic partnerships, are accelerating commercialization. However, the sector exhibits high volatility, as evidenced by beta coefficients of **2.61 for IONQ** and **1.95 for QBTS**, suggesting significantly higher price fluctuations compared to the broader market. This volatility is characteristic of nascent, high-growth technology sectors where future potential often outweighs current financial fundamentals. ## Broader Context and Implications for a Nascent Industry The parabolic gains seen in **IONQ, QBTS, and RGTI** — 833%, 2,715%, and 4,182% respectively over the past year — underscore the speculative yet high-reward nature of early-stage technology investing. These companies, while demonstrating impressive top-line growth and securing significant contracts, often operate with considerable losses as they invest heavily in research and development and scale their operations. For instance, IonQ’s significant revenue growth coexists with a quarterly loss of ($0.70) EPS. Similarly, D-Wave’s high valuation relative to its modest revenue and substantial losses highlights the market’s betting on future dominance rather than current profitability. Institutional interest is also growing, with firms like **Kennedy Investment Group** establishing new positions in **IonQ**. The sector's strategic alliances, such as **IonQ’s global infrastructure deals** and **Rigetti’s collaboration with QphoX** for quantum networking, are crucial for advancing enterprise integration and overcoming technical challenges. The community forum encapsulates the sentiment, noting: > "Quantum computing is not the next step after AGI, but rather a parallel revolution. AGI is the “mind,” quantum is a “supercharged lab.”" This perspective suggests a fundamental shift in technological capability rather than a mere evolution. ## Expert Commentary on Industry Trajectory **B. Riley analyst Craig Ellis** emphasized the industry's progress and regulatory support as critical accelerators for commercialization. He indicated that the speed at which quantum computing is moving from theoretical science to practical applications is noteworthy. While some companies like D-Wave have a commercial head start with quantum annealing, the broader market awaits more general gate-model quantum computing breakthroughs. The valuation of some quantum computing firms is seen by some as speculative, treating shares as "lottery tickets" given the significant dilution in capital raises and minimal revenue against large market capitalizations. ## Looking Ahead: Navigating Growth and Risk The quantum computing sector is poised for continued rapid evolution. Key factors to monitor include further technological advancements in hardware and software, the expansion of cloud-based quantum computing services, and the ability of leading companies to translate research into scalable, profitable commercial solutions. Upcoming economic reports, company earnings, and policy decisions related to quantum technology funding will significantly influence market movements. Investors will need to balance the immense long-term potential for disruption across industries with the inherent high risks, volatility, and significant capital expenditure characteristic of a technology still in its formative stages. The industry's trajectory will depend on a sustained pace of innovation, successful commercial deployments, and prudent financial management by its leading firms.
## D-Wave Quantum Achieves New High Amid Federal Reserve Rate Cut and Sector Growth **D-Wave Quantum Inc.** (**QBTS**) shares ascended to a new all-time high of **$24.85** on September 18, 2025, marking a significant milestone for the quantum computing firm. This surge reflects a remarkable **185.9% year-to-date** rally, considerably outperforming broader market indices including the **S&P 500**, which advanced **14.3%** over the same period. The robust performance is attributed to a confluence of macroeconomic shifts and strategic advancements within **D-Wave**. ## Catalysts Driving Market Movement A primary catalyst for the recent gains was the **Federal Reserve**'s decision on September 17, 2025, to implement its first interest rate cut of the year by **25 basis points**. This monetary policy adjustment is widely regarded as a significant boost for innovation-driven sectors, including quantum computing, by reducing financing costs and improving liquidity. Such conditions typically enhance investor appetite for high-growth enterprises that rely on projected future adoption rather than immediate profitability. Concurrently, **D-Wave** showcased its technological prowess and commercial traction at several high-profile global events, including **SEMICON Taiwan**, **Quantum World Congress**, and **FintechNation 25**. Management highlighted the practical applications of its annealing quantum computing solutions across optimization, artificial intelligence, and fintech. The general availability of its **Advantage2 system** further bolstered investor confidence, offering enhanced qubit connectivity and improved efficiency for solving complex problems. ## Commercial Expansion and Sector Outperformance **D-Wave**'s commercial momentum is particularly evident in the Asia Pacific region. The company reported an **83% year-on-year increase in APAC bookings**, as detailed at the **Qubits Japan 2025** user conference. Notable customer transitions from proof-of-concept to real-world applications include **Japan Tobacco** leveraging quantum AI for drug discovery and **NTT DOCOMO** achieving a **15% reduction in paging signals** through quantum optimization. The company also established a strategic relationship with **Yonsei University** and **Incheon Metropolitan City** in South Korea to advance quantum computing research. > "Asia – and especially Japan – is becoming an important epicenter of quantum computing innovation, development and adoption," stated **Dr. Alan Baratz**, CEO of **D-Wave**, underscoring the region's strategic importance. Year-to-date, **D-Wave**'s stock performance has significantly surpassed its direct competitors in the quantum computing space. While **Rigetti Computing** (**RGTI**) gained **62.1%** and **IonQ** (**IONQ**) advanced **59.9%**, **D-Wave**'s **185.9%** rally positions it as a leading performer among pure-play quantum firms. ## Valuation Metrics and Forward Outlook Despite the positive momentum, a closer examination of **D-Wave**'s valuation suggests caution for investors. The stock is currently trading at a forward 12-month price/sales (**P/S**) ratio of **236.93X**. This figure is substantially higher than its one-year median of **100.30X** and vastly exceeds the **Zacks Computer and Technology sector average of 6.94X**. This elevated **P/S** ratio implies that the market has already factored in significant optimism regarding the future adoption and commercial success of its **Advantage2** system. For fiscal year 2025, the **Zacks Consensus Estimate** projects **D-Wave Quantum**'s earnings and revenues to improve by **68%** and **181.5%**, respectively, compared to 2024. While these growth projections are substantial, the current **Zacks Rank #3 (Hold)** for **QBTS**, coupled with an
## Strategic Commercial Wins Bolster QUBT's Market Presence **Quantum Computing Inc.** (**QUBT**, also known as **QCi**) has announced key commercial milestones, signaling progress in the practical application of quantum technologies. The company secured a significant deal with a major global automotive manufacturer for its **EmuCore** reservoir computing device. This device, built on a field-programmable gate array (FPGA), is designed for secure, low-power machine learning edge use cases, aiming to enhance AI model training efficiency. This sale validates QCi's reservoir computing platform in real-world industrial settings and may pave the way for broader adoption of its **PCIe-based photonic reservoir computing units**. In a separate development, QCi announced a **$332,000 purchase order** from a top-five U.S. bank for its quantum communication system. This marks the company's first U.S. commercial sale of quantum cybersecurity solutions. The bank intends to establish a **Cybersecurity Quantum Optics Lab** to evaluate next-generation security tools, including quantum key distribution, quantum authentication, and quantum random number generation. QCi's system, compatible with existing telecom infrastructure, utilizes entangled photons at telecom wavelengths, supporting both quantum encryption and its patented quantum authentication protocols. ## Market Response and Valuation Dynamics News of these commercial engagements has coincided with an extraordinary ascent in QUBT's stock performance. Over the past year, **QCi's shares have surged 2615.3%**, dramatically outperforming the quantum computing industry's 46% growth and the S&P 500 composite's 20.8% increase during the same period. This significant price movement reflects robust investor optimism surrounding the company's advancements in quantum AI and cybersecurity. However, this rapid appreciation has led to an exceptionally high valuation. QUBT currently trades at a forward 12-month **Price-to-Sales (P/S) ratio of 2046.90X**, which stands in stark contrast to the industry average of 5.50X. This disparity suggests a highly speculative valuation, heavily discounting future growth and market penetration. Furthermore, **Zacks Investment Research** currently maintains a **Zacks Rank #4 (Sell)** for QUBT, indicating a challenging near-term outlook despite the long-term potential of its technology. ## Sector Context and Financial Landscape **QCi** operates in the nascent but rapidly evolving quantum computing sector, where commercial validation is crucial for market differentiation. Peers like **Rigetti Computing (RGTI)** and **D-Wave Quantum Inc. (QBTS)** are also making strides, with Rigetti recently deepening its international footprint and D-Wave launching its **Advantage2 quantum computer**. While QUBT's commercial wins are notable, the company's financial performance remains a point of concern. For the second quarter of 2025, QCi reported modest revenues of $61,000, a significant decline from $183,000 in the prior year. Net losses widened considerably to $36 million, up from $5 million a year earlier, primarily due to non-cash derivative liabilities related to the QPhoton merger. Analyst estimates for 2025 have seen the projected loss per share widen from 7 cents to 17 cents over the past 30 days. Despite these challenges, the company maintains a robust cash reserve of over $350 million, bolstered by a recent $200 million private placement of common stock, and boasts a current ratio of 44.69, indicating strong liquidity. ## Analyst Perspectives and Future Outlook Analysts acknowledge the strategic importance of QUBT's recent commercial deals in validating its technology. **Dr. Yong Meng Sua, CTO at QCi**, stated, "This order represents a pivotal commercial validation of QCi's quantum photonics and hardware capabilities." However, concerns persist regarding the company's path to profitability and its extremely high valuation. > "QUBT's photonics technology is promising, but its stock is already valued at more than 1,300 times its projected revenue for 2027. That meme stock valuation makes it a dangerous stock to own, and it could easily crash if it struggles to scale up its business." This sentiment highlights the significant execution risks, including potential shareholder dilution and the need to translate initial orders into meaningful, recurring revenue streams. The company's reliance on pilot orders from research institutions and government agencies, while validating, presents uncertain revenue visibility compared to large-scale commercial deployments. Moving forward, investors will closely monitor QUBT's ability to scale its business and secure sustained commercial adoption. The company's new chip foundry in Tempe, AZ, is anticipated to contribute meaningfully to revenues within 12–18 months. Key factors to watch include the pace of its commercialization efforts, progress in integrating its technology into enterprise solutions, and its ability to manage operating costs while pursuing an ambitious long-term strategy in quantum machines and photonic chip manufacturing.