Quantum Computing - Industry Analysis

Hello all, and welcome back for blog post number ten! Nolan's Investment Notion has now hit double-digit posts, and to celebrate I have very hot topic to discuss today, Quantum Computing. Over the last week or so, the QC (Quantum Computing) market has definitely cooled down a bit, but I want to dive into why it has been soaring over the last handful of months, particularly this last month, and why it is far from the end of QC stocks soaring across the market. To start, I am not going to try and explain how QC even works as that alone takes a couple hours of research just to wrap your head around it, but as a quick summary, QC leverages the mechanics of quantum computers (the physics of very small particles) to process information in fundamentally different ways than classic computers. Classic computers run on bits, you might've heard how everything behind computers is just a bunch of 0s and 1s, those are classic bits. Quantum Computers on the other hand run on what's called qubits which can be both 0 and 1 at the same time, thanks to superposition. A common analogy used to help a normal human brain wrap your reality around this idea, is imagine a classic bit as a coin, with tails and heads. A qubit is like a spinning coin, it is in a blend of tails and heads until you look at it. That's about as far as I am gonna go with that, as to be quite frank with you I have no idea what it means either, but it sounds efficient! The true goal of this post is to bring the industry to your attention, give you the core information regarding the industry, and provide you with a surging company along with some more information to help you create your biases and opinions surrounding this industry.

There are tons of massive QC companies, including tech whales with QC divisions like Google, Microsoft, Amazon, etc. but, in this post I want to focus just on a pure QC startup, QBTS. The reason being, they have been making some massive moves recently, and I have a little experience toying around with them and their options contracts, which can be very profitable in times of a surging industry.

D-Wave Quantum Inc (QBTS) is a very hot company in the QC space right now. Their revenue: $15M, a 509% increase year over year! Their net loss: $5.4M, which is an improvement from their $17.3M loss in Q1 of 2024. A massive notable deal for QBTS is their $12.2M sale of an Advantage Quantum System to Germany's Jülich. QBTS hit its market peak of $19.77 on May 23rd 2025, which is a little mind blowing considering their 52 week low is a staggering $0.75, now you see the hype I'm talking about. Their market cap sits at $5.13B, and they have an ATR (average true range) of 14.28%, showing high investor interest and market activity.

Now, it's not all sunshine and rainbows for these guys, or the entire industry as a whole. The stock plummeted $3 on May 27th, putting a halt to its trailblazing momentum, and since then the price action has been quite choppy; up big some downs, down big other days. This bearish force recently is due to a couple factors, but the main one being external skepticism and debates over their technological claims. Some big tech moguls have even had some words, Mark Zuckerberg (CEO of Meta) said, "still quite a ways off from being a very useful paradigm", and Jensen Huang (CEO of Nvidia) estimates that "very useful quantum computers" are still 15 to 30 years away. These press releases have led to short selling and skepticism of the entire industry as a whole.

So, what do I think about QC? It feels a lot like AI to me, in the sense that it is most definitely a defining foundation of the future, but we are still only seeing the tip of the iceberg right now. There's no doubt in my mind that the market will be dominated by new tech whales, specifically specialized in AI or QC that will be hanging around with the current big boys at the top, the question is just about how far out that era is... From an investing perspective, I think there's a couple ways to go about it. Do your research, if you really believe in QC, even in the short term, and want to get in on these wild gains (assuming you think they'll continue), then I'd say take a look at some of these pure QC startups like QBTS or QUBT. You can even get in the industry just by buying those blue chip tech giants like Google, Microsoft, etc. as they too have initiatives to further QC for their own departments. If you are a little skeptical about QC in the short term, no harm in waiting them out a bit. It may be tough watching these hundreds of percent fly by in the short term, but hey, tomorrow some news could come out about how QC is still way before its time and just like that, poof, all these short term hype profits down the drain.

That's it from me for this weeks post, thank you all very much for reading! I hope you enjoyed and learned something knew about the emerging industry of quantum computing. As always, do your research before putting your money anywhere, and I will talk to you all in the next post!

Nolan Kushnir.