QBTS stock surged 500% due to advancements in quantum computing technology

From Nasdaq: 2024-12-19 00:30:24

D-Wave Quantum (NYSE: QBTS) stock price has surged 500% in a month due to advancements in quantum computing technology. Quantum computers use qubits to process complex calculations with multiple states simultaneously. The company offers Quantum Computing as a Service, generating revenue primarily through this. However, quantum computing is still in a developmental stage and not widely implemented across industries.

Recent advances in quantum computing, like Google’s Willow chip and Amazon’s Quantum Embark, have boosted QBTS stock. D-Wave specializes in quantum computers with over 5,000 qubits and hybrid solvers. Despite the potential, QBTS is a high-risk, high-growth investment due to technological improvements and costs. The company reported an operating loss of $74 million in the last twelve months.

In terms of performance, QBTS stock has been volatile, with -86% returns in 2022 and -39% in 2023. In contrast, the Trefis High Quality Portfolio, with 30 stocks, has outperformed the S&P 500 consistently. QBTS has shown significant returns in December 2024, with 175% monthly return and 843% year-to-date return, compared to the S&P 500’s 1% and 27% respectively.

Investors looking for a smoother ride with potential upside can consider the Trefis High Quality Portfolio, which has outperformed the S&P 500 and delivered >91% returns since inception. Quantum computing remains an emerging technology with vast potential, but risks and uncertainties persist in the space.



Read more at Nasdaq: What’s Happening With QBTS Stock?