A major update in the quantum computing industry has sent stocks surging, with investors eager to see if the science lives up to its promises. The idea is to apply quantum mechanics laws to solve complex problems more easily than existing computers.
D-Wave Quantum, a company at the forefront of this technology, claimed it had achieved a breakthrough when it said its annealing quantum computer outperformed one of the world’s most powerful classical supercomputers. The company’s quantum computer performed the most complex simulation in minutes and with accuracy that would take nearly one million years using the supercomputer.
Industry analysts have welcomed the news, citing D-Wave’s growing backlog and opportunity to diversify into hardware sales beyond core QCaaS quantum cloud services. Shares of D-Wave Quantum closed up 47% at $10.13, nearly quintupling from a year ago.
Veteran traders are taking notice, with some raising their price targets on the company. B. Riley raised its price target to $12 and affirmed a buy rating, while Roth MKM analyst Suji Desilva raised her price target to $10 and maintained a buy rating. The analysts cited numerous positive long-term takeaways from D-Wave’s fourth-quarter results and guidance.
The sector has recently seen some volatility after Jensen Huang, founder of Nvidia, said the industry is about 20 years away from seeing “very useful quantum computers.” However, with D-Wave’s announcement, investors are starting to see the potential for immediate impact. The company expects to be the first pure-play quantum company to reach profitability and is driving revenue and booking opportunities.
The recent surge in quantum computing stocks suggests that investors are becoming more optimistic about the industry’s prospects. As D-Wave continues to grow its backlog and expand its offerings, it may be worth keeping an eye on this sector.
Source: https://www.thestreet.com/technology/major-update-sends-quantum-computing-stocks-surging