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The solace of quantum

Quantum computing companies are stacking up piles of cash, capitalizing on their booming stock prices

IONQ, RGTI, QUBT, and QBTS have raised a total of ~$4.5 billion this year as the battle for commercialization heats up.

Claire Yubin Oh

Make hay while the sun is shining, or so the saying goes. And that’s exactly what America’s quantum computing companies have been doing in 2025.

Quantum cash leap

Revenues have been overrated and profits unnecessary, with quantum stocks on fire this year as investors have piled into speculative pockets of the market, helping QBTS and RGTI soar some 1,800% and 2,300%, respectively, in the past year.

Still a young, largely speculative technology, quantum stocks have swung dramatically (but mostly up) on the slightest shift in sentiment. Sometimes, there’s been an actual technological breakthrough. At other moments, rumors of a potential government endorsement, contract, or investment have been enough to send them spiking — and occasionally, good old-fashioned thin air has kept them moving higher as retail traders piled into the stocks.

For the companies themselves, a higher share price is nice, but it really has zero effect on the day-to-day operations of the firm — unless they choose to cash in by selling new shares to the public. And cash in they have, with the four main public pure-play firms — D-Wave Quantum, Rigetti, Quantum Computing, and IonQ — raising more than $4.5 billion through some form of equity offering over the past year, per their press releases, including the following:

Quantum companies have been cashing in
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Indeed, with the exception of Rigetti Computing, which has raised the least of its peers during the past year, three out of the four quantum companies all reported a record-high cash pile in the latest quarter, giving them ample war chests to invest in the nascent technology in the pursuit of “commercialization” — or finally making some serious cash from all of these expensive hyperspeed computers, which promise the potential for breakthroughs in all kinds of fields, from engineering to biology, finance to cryptography.

At the end of Q3, D-Wave’s $836 million cash hoard outstripped that of all of its pure-play peers combined. IonQ’s fresh massive influx in early Q4 is now poised to give that company more than all its rivals combined!

The solace of quantum

Despite the hype, revenues remain negligible. Just this week, D-Wave Quantum reported revenue of just $3.7 million, with operating expenses of more than $30 million. Funding that kind of cash burn, when your operating expenses are 8x your revenue, gets a lot easier when your stock is up 1,800% in the last 12 months and you can build yourself a fortress of a balance sheet to help you weather the leaner times.

Interestingly, the race between (and beyond) the four pure-play quantum companies for commercialization — specifically to scale up hardware while solving reliability issues — is more of a battle between the different methods to achieve this common goal, whether it be using photonic (QUBT), trapped-ion (IONQ), or superconducting (RGTI, QBTS) modalities. The group is also divided in terms of the type of quantum system they’re most specialized in, with D-Wave the sole firm that’s most advanced in annealing quantum, while the others favor gate-based approaches.

Thanks to the insane ride over the last 12 months, each of those approaches should have hundreds of millions of dollars of funding available to them — even if the stock prices fade (which they have done in recent weeks).

Go Deeper: D-Wave CEO’s pitch to the Trump administration: Buy our quantum computers in exchange for an equity stake

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AI “bottleneck” stocks are the big winners halfway through a tumultuous week

Memory stocks and chip machinery companies are bouncing Wednesday, following a strong Oracle earnings report that bolstered confidence in the durability of the AI data center build-out.

In fact, Sandisk is the top performer of the S&P 500 so far this week, rising more than 21% from Friday’s close, as of shortly after 2 p.m. ET. Memory chip maker Micron is second in line, up more than 13% in weekly gains, and hard disk drive maker Western Digital is also getting a lift.

Other big winners so far this week are some of the so-called semicap shares — makers of the ultraprecise machines that turn silicon into actual semiconductors — with Lam Research and KLA Corp both racking up gains of about 10% on the week. Applied Materials is up about 8% this week.

Thematically speaking, both memory stocks like Sandisk and Micron as well as semicap shares like KLA have been part of the “buy the bottleneck” trade, in which investors buy companies they believe sit at key pinch points in the AI supply chain and therefore have pretty tremendous pricing power. Through that lens, the stocks’ bounce might reflect some additional excitement about the durability of the data center boom after Oracle’s results, which included a larger-than-expected capex number as well as sales guidances that was higher than Wall Street was forecasting.

But the bounce also may be the less interesting market phenomenon of mean reversion rearing its head, as these stocks were also some of the most beaten down in the S&P 500 last week, when Sandisk lost 17% and Lam lost about 15%, for example. So, some snapback may merely be a market reflex.

Other big winners so far this week are some of the so-called semicap shares — makers of the ultraprecise machines that turn silicon into actual semiconductors — with Lam Research and KLA Corp both racking up gains of about 10% on the week. Applied Materials is up about 8% this week.

Thematically speaking, both memory stocks like Sandisk and Micron as well as semicap shares like KLA have been part of the “buy the bottleneck” trade, in which investors buy companies they believe sit at key pinch points in the AI supply chain and therefore have pretty tremendous pricing power. Through that lens, the stocks’ bounce might reflect some additional excitement about the durability of the data center boom after Oracle’s results, which included a larger-than-expected capex number as well as sales guidances that was higher than Wall Street was forecasting.

But the bounce also may be the less interesting market phenomenon of mean reversion rearing its head, as these stocks were also some of the most beaten down in the S&P 500 last week, when Sandisk lost 17% and Lam lost about 15%, for example. So, some snapback may merely be a market reflex.

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Papa John’s spikes following report of a $47-per-share take-private offer from Qatari investment fund Irth Capital

A few weeks after announcing it would close 300 stores by the end of next year, Papa John’s is drawing fresh take-private interest from Irth Capital, an investment fund backed by a member of the Qatari royal family.

Papa John’s shares were up 19% on Wednesday afternoon, on pace for their best day since February 2025.

According to The Wall Street Journal, Irth is offering $47 per share for PZZA, valuing the company at about $1.5 billion. The fund currently holds a roughly 10% stake in Papa John’s, per the report.

Irth has tried to take Papa John’s private before, offering $60 per share in a joint bid with Apollo Global in June of last year. In October, Apollo Global again offered to take the company private at $64 per share. That offer was later withdrawn.

Broadly, the pizza category is being increasingly dominated by Domino’s, which opened 700 stores globally last year and has a market cap 9x greater than Irth’s latest reported offer for Papa John’s.

According to The Wall Street Journal, Irth is offering $47 per share for PZZA, valuing the company at about $1.5 billion. The fund currently holds a roughly 10% stake in Papa John’s, per the report.

Irth has tried to take Papa John’s private before, offering $60 per share in a joint bid with Apollo Global in June of last year. In October, Apollo Global again offered to take the company private at $64 per share. That offer was later withdrawn.

Broadly, the pizza category is being increasingly dominated by Domino’s, which opened 700 stores globally last year and has a market cap 9x greater than Irth’s latest reported offer for Papa John’s.

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