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The D-Wave 2X quantum system, is operated at the NASA Advanced Supercomputing facility's Quantum Artificial Intelligence Laboratory at NASA's Ames Research Center in Mountain View, Calif., as seen on Tuesday December 8, 2015.
The D-Wave 2X quantum system at the NASA Advanced Supercomputing facility (Michael Macor/Getty Images)

Unpacking the science behind the “quantum supremacy” breakthrough

It’s like the “Bourne Supremacy,” but for fancy computers.

When assessing the commercial viability of quantum computing, one of the basic things to answer is, “What can you do that a classical computer can’t?”

Most attempts to establish this so-called “quantum supremacy” have revolved around simply trying to out-compute classical computers, without much regard for whether the end product of that compute has any utility or not.

Which leads to the second question: “Well, can you do anything a classical computer can’t that could make or save me money right now?”

On March 12, D-Wave Quantum claimed the company had answered both these questions in the affirmative based on a peer-reviewed paper published in the journal Science.

That announcement, along with a very encouraging set of quarterly results, caused the stock to double in just three sessions.

But with all due respect to the authors, the report is completely inscrutable to those of us whose science education never included physics to begin with and ended with chemistry in 11th grade. Even the journalist failsafe of “read the abstract, read the conclusion, and you’ll kind of know what’s going on” is rendered completely useless when the abstract contains such phrases as “area-law scaling of entanglement in the model quench dynamics” and “stretched-exponential scaling of effort.”

When we recently spoke with D-Wave Quantum CEO Dr. Alan Baratz, one of the first things we asked was what the heck all this actually meant. Basically, quantum computers were able to identify what types of materials can make a good sensor and how to make them the most sensitive sensors they can be. Heres his longer explanation (emphasis added):

“Essentially what weve done is we have computed several different properties of magnetic materials. But to put a little bit finer point on that, what we are looking at is how these materials behave when they get close to whats known as a phase transition.

OK, so whats a phase transition? Thats like water freezing. Thats a phase transition. Or water boiling, and a gas is created. Well, magnetic materials also go through a phase transition, but that phase transition occurs not as a result of temperature changes necessarily, but as a result of putting them inside a magnetic field. Youve got a magnetic material that you put inside a magnetic field, and depending on the actual structure and strength of that magnetic field, that magnetic material may go through a quantum phase transition. Now the reason why the phase transitions are so important in magnetic materials is because a lot of times magnetic materials are used as sensors, like in an MRI. And what we know is that if the magnetic material is close to its phase transition point, it becomes a much more sensitive sensor. It can detect more and smaller properties, or more faint properties. So what you want to do for any magnetic material, youd like to understand where its phase transition point is and youd like to understand its sensitivity as it gets close to that point, because that will help you identify materials that are good sensors and help you determine how you should operate those materials, what kind of a magnetic environment you should place them in as youre using them as a sensor.

So thats essentially what weve done. Weve demonstrated that you can take a variety of different types of magnetic materials, you can put them in a magnetic field, to get them right to their phase transition point. You can find out what that phase transition point is, and you can find out their sensitivity at that phase transition point. And thats a really important set of properties to understand as youre thinking about using these materials as sensors. Now, the upshot of all of this is that you can investigate new kinds of materials that have never been created before and determine if they make good sensors before you actually go try to fabricate them. So you can identify new types of materials much faster.”

A little more, from the company’s press release on this breakthrough:

“Magnetic materials simulations, like those conducted in this work, use computer models to study how tiny particles not visible to the human eye react to external factors. Magnetic materials are widely used in medical imaging, electronics, superconductors, electrical networks, sensors, and motors...

Materials discovery is a computationally complex, energy-intensive and expensive task. Today’s supercomputers and high-performance computing (HPC) centers, which are built with tens of thousands of GPUs, do not always have the computational processing power to conduct complex materials simulations in a timely or energy-efficient manner.”

When asked how this was different from what Alphabet was able to pull off last December with its Willow chip, Baratz replied (emphasis added):

“The problem that they address with Willow is called random circuit sampling. So basically what you do is you take a quantum computer and you have it perform a random set of computations that have no value whatsoever. Nobody can do anything useful with this random sequence of computations, but you have it perform a random sequence of computation. And then you see if a classical computer could do the same thing. And what you find is that because these random computations are quantum mechanical computations, its very hard for classical computers to simulate them.

Right. But thats all theyve done. Theyve built a quantum system. Theyve had it perform a random sequence of quantum computations, and then they ask, how hard would it be for a classical computer to simulate that? And the answer is, it will be very hard. Now, what is important about Willow — because it was an important breakthrough — is that Google tried to do this in 2019 and they claimed quantum supremacy back then on this totally worthless problem. Interesting, but worthless. OK. The problem is shortly after that, it was shown that you actually could perform that computation classically.

Why? Because the Google system was so error-prone that you could only do relatively few of these computations before you got errors. So I think the circuit depth, or the number of computations you could do, is like 22 or 23, something like that. What Willow did was it added some partial error correction to the system. And what they showed is that with partial error correction, they could do a longer sequence of these random computations and that longer sequence could not be simulated classically. So there were two important things that came out of Willow. One: it is a demonstration that actually, you can do some partial error correction. Namely, theres a first demonstration of error correction on a quantum computer. Its small, its partial, but its a step forward. Two is that when you do that partial error correction, you can run longer computations before you get errors, and long enough that classical probably cannot simulate it.

So that’s what Willow did. What we did is something very different. We’re not doing random anything. We are taking a real-world problem and basically performing the computation for that problem, which would be effectively impossible for a classical computer to perform. And those two are very different.”


If that didn’t help, maybe this will:

Beyond-classical computation in quantum simmulation
Source: Science

Yeah, totally clears it up.

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Energy stocks follow oil lower as Strait of Hormuz set to reopen

Oil names including Occidental Petroleum, Marathon Petroleum, CF Industries, Devon Energy, Phillips 66, ConocoPhillips, Exxon, and Chevron are all ticking lower on Monday, following oil itself, after the US and Iran agreed to strike a deal to end a conflict that has pushed energy stocks up in recent months.

Alongside the countries both declaring the end of their military operations, US President Donald Trump said on Sunday that the Strait of Hormuz would be opened when the agreement is signed in Switzerland on Friday, writing on Truth Social, “Ships of the World, start your engines. Let the oil flow!

Let the oil flow?

Vessel traffic through the Strait of Hormuz, however, remains largely unchanged since the announcement of the peace deal on Sunday, per crossing data tracked by AIS. With the exception of some smaller vessels and prearranged crossings, shipowners are likely waiting for the planned signing on Friday and further confirmation from the Iranian side before attempting transits.

Analysts at the Baltic and International Maritime Council said that they “still consider it very risking for ships to commence transits” through Hormuz, adding that they “expect it will take several weeks for all [trapped] ships to leave” in a conversation with CNN.

US-POLITICS-DIPLOMACY

Stocks soar as US and Iran reach deal to open Strait of Hormuz, end the war

The details of the framework for peace are not yet available.

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AMD shares climb on double Citi upgrade to “buy” with $575 price target

AMD’s shares are rising in premarket trading following a double upgrade from Citi. Citi analyst Atif Malik raised AMD’s investment rating to “buy” from “neutral” and boosted the bank’s 12-month price target to $575 from $460 per share, per Barron’s.

Malik argued that the broader market currently misprices AMD by looking at it primarily as a CPU producer, underestimating its massive GPU potential. Citi says that AMD is uniquely “poised to win the lion’s share” of Meta’s customized graphics chip business. Meta is leaning into AMD’s custom MI450 chips, which deliver a lower total cost of ownership compared to buying traditional off-the-shelf merchant hardware, according to Investing.com.

Citi highlighted a massive multiyear deal between the two tech giants involving a 160 million-share common stock warrant. As the first phase ramps up through 2027, Citi expects each gigawatt of data center infrastructure to translate into roughly $15 billion in revenue. Consequently, Citi hiked its 2027 AMD AI sales forecast to $33 billion (up 137% year over year) and projects GPU sales to reach $50.8 billion by 2028.

CEO Lisa Su recently delivered an optimistic demand forecast, predicting that the global market for CPUs will grow by more than 35% annually over the next five years. The chipmaker delivered a robust Q1 earnings report back in May that beat Wall Street expectations across key data center segments.

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Astera Labs, CoreWeave, Nebius, Rocket Lab, Teradyne rise on Nasdaq 100 Index inclusion announcement

Tech stocks Astera Labs, CoreWeave, Nebius, Rocket Lab, and Teradyne have risen as much as 8.9% in premarket trading on Friday, thanks in part to Nasdaq’s announcement that the five companies will join its flagship Nasdaq 100 Index starting June 22.

As part of the index operator’s quarterly rebalance, which affects some $1.4 trillion in assets within the Nasdaq 100 ecosystem, the companies will replace Charter, Zscaler, Cognizant, Insmed, and Verisk — relatively slow-growth legacy businesses that have lingered around the bottom of the index in market cap terms of late. Most of those stocks slipped slightly on the news.

With CoreWeave and Nebius as two of the major players in the neocloud space, and Astera Labs and Teradyne specializing in making AI hardware and semiconductors, the latest additions reflect how the index is upping its exposure to the AI infrastructure stack. Back in December, Nasdaq also added AI data storage names Seagate Technology Holdings and Western Digital, as well as AI server manager Monolithic Power Systems, as part of its quarterly rebalance.

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Adobe beats on Q2 earnings, revenue; CFO to step down

Adobe reported fiscal Q2 results Thursday, beating analysts’ estimates for revenue and earnings, as its stock plumbed its lowest levels since 2019.

For Q2 2026, the creative software company posted:

  • Revenues of $6.62 billion (estimate: $6.45 billion).

  • Adjusted earnings per share of $5.96 (estimate: $5.82).

  • Annual recurring revenue of $27.1 billion (estimate: $26.6 billion).

  • Subscription revenue of $6.42 billion (estimate: $6.27 billion).

  • Remaining performance obligations of $22.27 billion (estimate: $21.86 billion).

The company also said its CFO, Dan Durn, would step down next week “to pursue a new professional opportunity.” And it boosted its full-year guidance for earnings and revenue.

Shares fell 5.5% in after-hours trading.

Adobe is feeling the pressure from AI, as the April release of Anthropic’s Claude Design threatens the company’s core design software business. Shares have tanked lately, with the stock down by nearly half over the past 12 months, putting it at levels not seen in years.

Last quarter, Adobe announced that CEO Shantanu Narayen, who had been at the company for 18 years, would be leaving after his successor was appointed. Today, Adobe announced that CFO Dan Durn would also be leaving the company — this month.

Adobe announced a $25 billion stock buyback in April, which gave the stock a boost. The company said it repurchased about 8.5 million shares during the quarter.

In a press release, Narayen said:

“Adobe delivered record revenue of $6.62 billion in Q2 reflecting strong AI-driven demand across our customer groups and we are raising our full-year fiscal 2026 revenue and non-GAAP EPS targets on the strength of that performance.”

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