Top quantum computing stocks like IonQ, Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) are rising today after IonQ made a breakthrough this week.
IonQ stock is up more than 10% in the pre-market session, while D-Wave Quantum is up 4.70%. Rigetti Computing is up by over 5.2%, while Infleqtion (INFQ) is up by over 5.5%.
Quantum computing stocks jump after IonQ breakthrough
Top companies in the quantum computing industry are rising after IonQ, one of the top names, made a major breakthrough in fault-tolerant computing. Its researchers demonstrated the development and testing of the industry’s first end-to-end real-time quantum error decoder that runs on a standard CPU.
In a statement, the management said that this error correction is an important part of building practical, fault-tolerant quantum computers. That’s because physical qubits are highly sensitive to environmental noise, and finding and fixing these errors has always been difficult. Nicolas Delfosse, the head of quantum research at IonQ said:
“Successfully validating real-time decoding across hundreds of logical qubits and over millions of logical operations is an important milestone. Moreover, the fact that our decoder runs on a single CPU provides a practical path to commercial-scale fault-tolerant quantum computing.”
The new milestone came a week after IonQ demonstrated computer-aided engineering workload acceleration by up to 14.6% using quantum technology. It did this in collaboration with Synopsys, one of the top players in the industry. This is important because demand for large-scale simulations has continued rising.
IonQ, Rigetti Computing, and D-Wave are growing
Top analysts believe that quantum computing companies will continue growing in the foreseeable future. Yahoo Finance data shows that the average estimate is that IonQ’s revenue will jump by 250% this year to $455 million. This figure will then jump by 78% to $811 million next year.
D-Wave Quantum’s revenue is also expected to continue booming as more companies embrace the technology. The average estimate is that its annual revenue will jump by 72% this year to $42.4 million. This figure will jump to $55.2 million next year.
Rigetti Computing’s revenue is expected to surge by 228% this year to $23 million, followed by $43 million next year. This growth is being driven by the rising demand for quantum computing solutions and the new milestones by IonQ will play a role.
Still, quantum computing companies face some major challenges ahead, which explains why their stocks have retreated in the past few months. IonQ stock has slumped by 52% from its highest level last year.
D-Wave Quantum has slumped by 62%, while Rigetti Computing has plunged by over 70% from its all-time high. Their short interest have also remained at an elevated level. IonQ has a short interest of 10.3%, while D-Wave and Rigetti have 19% and 17.7%, respectively.
Another key risk is that profitability has been highly elusive. Rigetti has had a net loss of $238 million in the trailing twelve months (TTM). D-Wave Quantum’s net loss has widened to $248 million, while IonQ has lost over $1.3 billion in this period. There are also concerns about their elevated valuations.
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