Markets
Collision 2019 - Day One
Alan Baratz of D-Wave Quantum (David Fitzgerald/Getty Images)

D-Wave Quantum touts tech breakthrough that lets gate models scale

You know what’s cool? Keeping a lot of qubits, together, cool.

Luke Kawa

D-Wave Quantum has announced a breakthrough that addresses a key challenge in developing superconducting gate-based quantum computers: how to gather a ton of quantum bits (or qubits) in the same place while keeping them all cool enough to function.

A particularly tricky problem of heat

We want quantum computers to be able to solve complex problems. Complex problems require these machines to utilize a lot of qubits. Those qubits, in a superconducting system, need to be housed in an extremely cold environment to operate.

But connecting and communicating with all those quantum processing units (or QPUs) via individual wires would result in too much heat, not to mention adding to the cost of the system.

D-Wave says it’s solved this problem through multiplexing (using one wire to communicate with a number of other chips) and bump bonding (stacking a QPU and a control chip together), as well as controlling qubits by magnetic fields.

“This industry-first milestone advances the development of commercially viable gate-model quantum computers by significantly reducing the wiring required to control large numbers of qubits without degrading qubit fidelity,” per the press release. “Using superconducting bump bonding and advanced cryogenic packaging techniques, D-Wave built a multichip package that integrates a high-coherence fluxonium qubit chip with a multilayer control chip.”

Annealing vs. gate-based

D-Wave is the major player in annealing quantum computing, an approach that solves more specialized optimization problems. The company has already been able to apply this on-chip cryogenic control technology to its annealing systems.

But gate-based quantum computers, which aim to address even more complex and broad queries, are the dominant approach, pursued by the likes of Rigetti Computing and IonQ as well as D-Wave.

 “We wanted to make sure that we had kind of the scalable control piece sort of nailed down, because we think that to get to broad quantum utility with gate-model architectures requires scaled, error-corrected architectures, which requires a lot of physical qubits,” said Dr. Trevor Lanting, chief development officer at D-Wave.

“This is basically proof that we can use the technology that exists that we’ve developed, and more or less in a very straightforward way, to control gate-model architectures.”

He added that D-Wave’s superconducting approach to quantum computing allows the firm to leverage preexisting manufacturing and packaging processes that have been developed, rather than having to build up a technology base from scratch. 

A solid first step

During the conference call that followed the release of Q3 earnings in November, CEO Dr. Alan Baratz highlighted gate-model development as a priority for D-Wave.

“ Up until now, our investment in gate has been light, mostly because we havent had the funds to be able to grow that investment all that much. Now with the roughly $830 million in the bank, we have the resources to be able to invest more in that program, both internal investment and through acquisition to accelerate the program,” he told Sherwood News.

“ We have one customer who has said, ‘When you have a gate-model system, I want it.’”

At the time, Baratz told us that what was ultimately announced today would mark the “first step” in the company’s gate-model program.

“ From there, we will go to a small logical qubit, a small surface code logical qubit to demonstrate that we can now use this technology to build error-correctable logical cubits,” he said. “And our hope would be to have that before the end of next year, and then well start scaling to larger surface code.”

More Markets

See all Markets
Dickens, Great Expectations, He said, Aha! would you?

Tech tumbles as momentum stocks run into a blowout jobs report and a wave of profit-taking

The AI trade is under some pressure, taking prices back like... a few days. President Donald Trump is not a fan of the price action.

Trump Administration Considers Reclassifying Marijuana As A Less Dangerous Drug

Trulieve to list on NYSE, a first for US cannabis sector

More may be on the way: several other US cannabis companies have announced reverse stock splits with the intention of listing on a major exchange.

markets

Lululemon’s stretch getting tested: Stock plunges after after outlook is cut

Lululemon shares are down double digits in premarket trading after the company cut its full-year sales and profit outlook, overshadowing a Q1 beat and raising fresh concerns about the brand’s turnaround efforts.

The company now expects fiscal 2026 revenue to be flat to down 1%, compared with its prior forecast for 2% to 4% growth. Guidance for full-year diluted earnings per share was dragged down to a range of $10.95 to $11.15, below the company’s previous guidance of $12.10 to $12.30 and well below Wall Street’s estimate of $13.26.

Key numbers for Q1:

  • EPS of $1.69 vs. the $1.68 expected.

  • Revenue of $2.47 billion vs. the $2.43 billion expected.

The modest top-line beat masked a widening divergence between Lululemons geographic markets. While international revenue rose 22% overall with a 30% increase in Mainland China, the bigger problem remains North America, where revenue fell 5%.

Interim co-CEO and CFO Meghan Frank acknowledged during the earnings call that recent product rollouts underperformed. A highly anticipated yoga campaign failed to generate its expected halo effect across broader product lines.

Profitability metrics took a major hit, with gross margins contracting by 410 basis points to 54.2% due to mounting tariff costs and promotional markdowns. Operating income consequently fell 37% year over year to $276.9 million.

“We experienced spikes of negative commentary in the media and on social channels with regard to our brand, which had an impact on traffic and overall top-line performance,” Frank said during the earnings call. “And second, not all of our product launches have met our expectations. While we have had several successful launches so far this year, we have seen others as we start Q2 not generate the anticipated guest response.”

Lululemons valuation has already been steadily compressing for years. While it was once one of retails richly valued stocks, investors have been questioning whether the company can return to the double-digit growth era.

The results also arrive during a leadership transition. Lululemon announced back in April that former Nike executive Heidi ONeill is set to take over as CEO in September, with investors looking to her to revive growth in North America and restore the brands growth.

As Lululemon faces both macroeconomic pressure and brand-specific challenges, its stock has dropped around 40% year to date.

markets

US job growth skyrocketed in May, blasting past expectations

The US economy added 172,000 jobs in the month of May, the Bureau of Labor Statistics reported Friday, sending 10-year Treasury yields higher.

The strong May job market surprised economists. Experts had predicted only 85,000 new jobs — just half the reported number. The unemployment rate held steady at 4.3%, as expected.

The job growth story is a hopeful spot for the economy as consumers continue to feel inflationary pressure from the Iran war.

Job gains were buoyed by the leisure and hospitality sector, which added 70,000 jobs, as well as local government, healthcare, and education.

Both the March and April jobs reports were revised upward, making them collectively 93,000 higher than previously reported.

Latest Stories

Sherwood Media, LLC and Chartr Limited produce fresh and unique perspectives on topical financial news and are fully owned subsidiaries of Robinhood Markets, Inc., and any views expressed here do not necessarily reflect the views of any other Robinhood affiliate, including Robinhood Markets, Inc., Robinhood Financial LLC, Robinhood Securities, LLC, Robinhood Crypto, LLC, Robinhood Money, LLC, Robinhood U.K. Ltd, Robinhood Derivatives, LLC, Robinhood Gold, LLC, Robinhood Asset Management, LLC, Robinhood Credit, Inc., Robinhood Ventures DE, LLC and, where applicable, its managed investment vehicles.