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A leader in quantum computing reported this week that it has successfully sold two of its quantum systems.
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Additionally, the company shared that it collaborated with law enforcement in the U.K. to enhance emergency response capabilities.
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Valuation concerns continue to plague quantum-related stocks.
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Shares of D-Wave Quantum (NYSE: QBTS) surged on Thursday, closing up 14%. This increase occurred as the S&P 500 (SNPINDEX: ^GSPC) remained steady while the Nasdaq Composite (NASDAQINDEX: ^IXIC) rose by 0.4%.
This quantum computing stock is reacting in tandem with the broader quantum sector following Rigetti Computing‘s announcement regarding the sale of two of its Novera quantum systems. The combined contract value of $5.7 million is a significant milestone, constituting over half of the company’s projected revenue for 2024. This news was seen as a positive indicator for the quantum sector, contributing to the increase in D-Wave’s stock price.
D-Wave’s recent disclosure also contributed to the boost, as the firm revealed it collaborated with the North Wales Police Department to “enhance the strategic deployment of police vehicles for emergency situations.” The trial reportedly achieved a 50% reduction in average response times, showcasing the tangible benefits and applications of D-Wave’s technology across various sectors.
The promise of quantum technology is vast, although its current stage of development may be more preliminary than many investors realize or anticipate. Notably, D-Wave’s press release lacks critical specifics, particularly regarding the proportion of its “hybrid-quantum solver” that is genuinely quantum versus classical.
D-Wave’s market capitalization of $10 billion appears difficult to rationalize, particularly when considering last year’s revenue of just $8.8 million. For a more robust play in the quantum arena, I would recommend looking at Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL).
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