To The Moon

Mid Week Surprise.

In the third week of May 2025, investors took note as a group of unexpected tech stocks started rising steadily.

No, it is not the “Magnificent 7”, the group of Mega cap tech leaders responsible for most of the sector’s growth.

Rather, these stocks have often fly under most investors’ radar. But not for long…..

Who Are They ?

The companies are part of the quantum computing field, that is a fast-growing market, that centers around a type of computing, leveraging on Principles of Quantum mechanics.

Quantum computing solve complex problems by utilizing quantum bits (qubits) of information at significantly higher speeds than traditional computers.

Quantum computing is still overshadowed by artificial intelligence (AI). However, the industry has been making strides lately.

In particular, it was this one stock that made headline news and sent quantum computing stocks surging, although momentum has since cooled due Trump’s tariffs and the enlargement of Israel military attacks.

Sarge986 LLC, Founder & President, Stephen Guilfoyle believes the Quantum sector is poised for growth and he has flagged two quantum stocks as likely winners.

The Two Are.

Firstly quantum stocks surged (of late) due to updates from $D-Wave Quantum Inc.(QBTS)$, leader in practical quantum computing.

It has emerged as the industry’s leader, rising more than +470% over the past 2 quarters.

Sidetracked: I have covered QBTS’s major customers in a separate post. Click here ! for details.

Stephen Guilfoyle, who follows the sector closely, recently highlighted the progress demonstrated both D-Wave and its peer $Quantum Computing Inc.(QUBT)$, a company that produces photonic hardware solutions for quantum machines.

Earlier on, Guilfoyle had exited his D-Wave position prematurely.

The good news is he now sees it as a small-cap stock that is “ripe for the picking” for investors looking to gain exposure to the fast-growing quantum computing industry.

While he describes QBTS as being “more ripe” than QUBT, he sees potential in both.

QBTS Earnings.

On 08 May 2025, QBTS handed in its earnings report card for Q1 2025.

It has reported extremely strong Q1 earnings:

• Setting records for both Generally Accepted Accounting Principles (GAAP) gross profit.

• And quarterly end cash position.

Guilfoyle highlighted both companies’ earnings progress in a recent analysis, stating:

• For its quarterly earnings, QUBT made a surprise profit of $0.11 per share, even though its total sales were only $39,000.

• That top-line number, was good enough for YoY growth of 44%.

• QBTS on the other hand, posted a Q1 GAAP EPS of -$0.02 on revenue of $15 million.

• That number, while still minuscule for now, was enough to drive YoY growth of 507%.

Guilfoyle also flags a positive change for D-Wave, stating that its balance sheet had improved and should no longer be considered inferior to Quantum Computing’s.

While he notes that D-Wave’s books include a few longer-term liabilities, he believes the company’s Free cash flow (FCF) are able to address them should the need arise.

Guilfoyle Predictions.

By traditional financial standards, both QBTS and QUBT should be considered “grossly overvalued”, said Guilfoyle.

However just look at $Palantir Technologies Inc.(PLTR)$ - another AI company tagged by many analysts as also “grossly overvalued”.

Despite that, money continues to pour into PLTR, with its stock rising nearly +500% in 2025 alone.

As TheStreet reported earlier in 2025, several quantum computing stocks surged late in 2024, leading to speculation that their high valuations could pose problems in the near future.

Although these companies may be overvalued, Guilfoyle does not seem worried about the future of the industry.

He still believes that quantum computing is a sector ripe with potential, comparing it to another area of technology that has boomed recently.

His conviction and argument:

• Generative AI is the latest & greatest thing (now) in the technology world and will likely be with us from anywhere from a long time to something close to the rest of conceivable time as it evolves,” he states.

• That said, Quantum Computing will be far more powerful & speedy than any supercomputer invented so far.

• Quantum computing, in Guilfoyle opinion, remains the next great thing.

If he is correct, companies like QBTS and QUBT are likely well-positioned to help lead the charge as this new frontier of technology continues to mint a new generation of market winners.

Latest.

QBTS 2025 YTD performance

• On Tue, 24 Jun 2025 - QBTS gained +0.20% on the back of another rally in the US market.

• Hope that it is inching back to its peak of $18.80 achieved on 23 May 2025 or higher, if it could secure more commercial customers to add to its growing base..

On 01 Jun 2025, it was reported that US 2nd largest pension fund - The California State Teachers’ Retirement System (Calstrs), in its 13F filing, has increased its QBTS holdings and a few other stocks in Q1 2025.

Calstrs bought 211,672 more QBTS shares to end Q1 2025 with 218,931 shares.

Note :Pension funds are some of the biggest and most powerful investors in the world. In 2023, they managed about $47.9 trillion, that is more than half the size of the economies they invest in.

Calstrs buy into QBTS is a “strong belief” indicator itself. Remember to do your due diligence before taking the plunge.

Do check out my other posts. (See below). Help to Repost ok, Thanks.

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• Do you think Quantum Computing is here to stay as a new offshoot in Technology sector ’?

• Do you think QBTS & QUBT are the “best” in breed Quantum stocks to own now ?

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