Quantum computing shares, including D-Wave Quantum, Rigetti Computing, and IONQ, staged a rip-roaring rally at the end of last week in the latest twist in the sector’s meteoric rise that started in November last year.
The rally’s driving force was an announcement by key player D-Wave Quantum, which claimed it had developed the ‘world’s first and only demonstration of quantum computational supremacy on a useful, real-world problem’.
D-Wave said its annealing quantum computer performed a simulation that would take a normal computer nearly one million years in just minutes.
“This is a remarkable day for quantum computing. Our demonstration of quantum computational supremacy on a useful problem is an industry first. All other claims of quantum systems outperforming classical computers have been disputed or involved random number generation of no practical value,” said Dr. Alan Baratz, CEO of D-Wave.
The development sparked a wave of buying in D-Wave shares that turned positive on the year and helped lift other quantum stocks such as Rigetti Computing, Quantum Computing and IONQ.
D-Wave also announced earnings last week, revealing bookings had increased 128% in the last year and saying first-quarter revenue was set to exceed $10m, compared to $8.8m for the whole of last year.
Further compounding interest in the sector, analysts at investment bank Mizuho Securities suggested that chip giant Nvidia may outline a path to wider quantum computing adoption at a conference this week, raising hopes that the sector could be on the verge of greater commercial penetration.
Any such roadmap would be a real boost to the sector after the Nvidia boss stopped the quantum computing rally in its tracks in early 2025 by saying we are decades away from using quantum computing in real-world applications.
The rally in quantum stocks last week was mostly speculative. But this week’s Nvidia conference could produce a nugget or two that validates the quantum computing investment thesis.