From Nasdaq: 2025-01-04 07:45:00

Google’s parent company, Alphabet, announced a breakthrough in quantum computing with its Willow chip, leading to a surge in quantum tech stocks. Rigetti Computing’s value has skyrocketed, while Skywater Technology has seen a more modest rise. Skywater’s diversified business model generates more revenue and may offer long-term potential in the quantum computing space.

Skywater, a semiconductor manufacturer, focuses on developing next-gen semiconductor technology through a unique customer-funded CapEx model. Revenue from Advanced Technology Services, Tools, and Wafer Services segments has been increasing, with a total revenue of $94 million in Q3. Positive financial indicators show potential for growth and stability in the future.

Involvement in quantum computing is highlighted in Skywater’s annual report, with partnerships in the field. Collaborating with PsiQuantum to develop quantum computing chips offers significant advantages over traditional approaches, such as operating at room temperature. Skywater’s experience in multiple quantum computing approaches positions it well for long-term benefits in the evolving tech landscape.

Skywater’s developmental business model and revenue growth set it apart from other foundries, making it an intriguing option with quantum computing potential. Despite not being a pure quantum play, Skywater’s stability amid industry slowdowns and lower price-to-sales ratio compared to competitors present a compelling investment opportunity in the quantum computing sector.



Read more at Nasdaq:: Quantum Opportunity: Skywater Technology’s Long-Term Potential