Core Insights - Quantum computing stocks, particularly IonQ, Rigetti, and D-Wave, have seen extraordinary returns, with trailing 12-month gains ranging from 670% to 6,217% [2] - The technology is expected to create significant economic value, with estimates ranging from $450 billion to $850 billion by 2040, and a $1 trillion addressable opportunity by 2035 [7] Company Performance - Insiders at IonQ, Rigetti, and D-Wave have sold approximately $615 million more in shares than they have purchased over the past year, indicating potential concerns about stock valuation [14][20] - IonQ's market cap stands at $12 billion, while Rigetti's is at $5.1 billion, reflecting their positions in the market [13][16] Market Trends - The rise of quantum computing has been fueled by significant investments, including JPMorgan Chase's $1.5 trillion Security and Resiliency Initiative, which identifies quantum computing as a key area for future financing [8] - Major companies like Amazon are already utilizing quantum computing through services like Braket, which enhances the credibility and market presence of IonQ, Rigetti, and D-Wave [9] Insider Activity - No insiders at Rigetti have purchased shares in the past year, while D-Wave had minimal insider buying, suggesting a lack of confidence in stock valuation [17] - In contrast, two directors at IonQ have invested approximately $2.1 million in their own company, indicating some level of confidence [17] Industry Outlook - Quantum computing is still in its early commercialization stages, and historical trends suggest that new technologies often face significant challenges and corrections during their growth phases [19] - Analysts caution that the high price-to-sales ratios of quantum computing stocks may not reflect their long-term potential, as the technology is still being optimized for practical applications [18]

Company Overview - D-Wave Quantum experienced a significant share price increase of 211% last year but has seen a decline of 25% as of February 13, 2026 [1] - The company is set to report its fourth-quarter and full-year 2025 earnings on February 26, 2026 [1] Earnings Performance - Post-earnings price movements for D-Wave have been unpredictable, with a 6% rise following the first and second quarter earnings in 2025, but an 18% drop after the third quarter earnings despite a 235% increase in revenue and a 353% increase in gross profits year over year [2] Industry Environment - The quantum computing sector is currently facing challenges, with the tech industry experiencing headwinds due to concerns over high capital expenditures in AI technology [3] - Investors are becoming more risk-averse, which negatively impacts pure-play quantum computing companies that are not yet profitable and have high valuations [3] Valuation and Financial Health - D-Wave trades at over 200 times trailing sales and reported a net loss of $313 million over the first three quarters of 2025 [4] - The company is considered expensive even after recent declines, leading to skepticism about its future performance [4] Investment Considerations - D-Wave Quantum was not included in a list of the 10 best stocks recommended by analysts, suggesting a lack of confidence in its investment potential at this time [5]

Group 1 - D-Wave Quantum Inc. has made significant strides in 2026, including the $550-million acquisition of Quantum Circuits, enhancing its position in the gate-model quantum technology sector [2] - The company has secured multiple new deals for its Advantage2 quantum annealing system, indicating a commitment to its dual-tech approach, which differentiates it from competitors [2] - A renewed focus on defense sector applications may provide new client opportunities and projects for D-Wave [2] Group 2 - Despite these advancements, D-Wave's shares have declined by 30% year-to-date, reflecting a broader selloff in the quantum industry [3] - Quantum Computing Inc. has experienced a smaller decline in share price compared to D-Wave and other rivals, suggesting it may have distinguishing factors worth noting [3][6] - Quantum Computing Inc. has a Moderate Buy rating from analysts, with expectations for its shares to potentially rise by 112% to $18 per share, although its revenue remains low at $384,000 for the last quarter [4][5]

Group 1: Company Performance - D-Wave Quantum has experienced a significant revenue increase, doubling its revenue in Q3 2025 to $3.7 million, with a consensus estimate of $25.6 million for the entire year [4] - The projected revenue for 2026 is nearly $43 million, representing a 68% increase from 2025 [4] - Despite rising sales, D-Wave is expected to continue facing substantial losses, with a net loss of $140 million in Q3 compared to sales of $3.7 million [6] Group 2: Share Price and Market Sentiment - D-Wave's share price has surged 255% over the past year but is predicted to decline due to a broader trend of investors moving away from riskier stocks [1][8] - The company's stock has already decreased by 35% over the past three months, influenced by investor concerns over geopolitical instability and economic conditions [8][9] - D-Wave's price-to-sales (P/S) ratio stands at 237, significantly higher than the tech sector average of 8, indicating that the stock may be overvalued [11]

Core Insights - The first-mover advantage for pure-play quantum computing stocks may be short-lived as competition increases from larger tech companies [1][16] - Quantum computing represents a significant global economic opportunity, estimated to create between $450 billion and $850 billion by 2040 [5][6] - Despite impressive stock rallies, the commercialization of quantum computing is still in its early stages, with risks of overestimation of adoption and optimization [12][11] Company Performance - As of mid-October, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen increases of up to 6,200% over the past year [2] - These companies have been buoyed by practical applications of quantum technology and partnerships with major clients [6][8] - JPMorgan Chase's $1.5 trillion Security and Resiliency Initiative includes quantum computing as a key investment area, signaling potential growth [9] Market Dynamics - Quantum computing is projected to be a $850 billion market, though it cannot match the multitrillion-dollar market of AI [5] - Major tech companies, referred to as the "Magnificent Seven," are investing heavily in AI and are likely to extend their reach into quantum computing [17][19] - The entry barrier for quantum computing is relatively low, allowing larger companies to potentially overshadow pure-play stocks [16][19] Risks and Challenges - The commercialization of quantum computing is still nascent, with widespread adoption not yet realized [12] - Share-based dilution is a significant risk, as these companies have collectively issued over $4.1 billion in stock to raise capital [13] - The competitive landscape is shifting, with larger companies already making strides in quantum technology, posing a threat to the longevity of pure-play stocks [18][19]

Core Viewpoint - The article summarizes significant rating changes from Wall Street, highlighting companies with upgraded, downgraded, and newly initiated ratings, which are crucial for investors to consider. Upgraded Ratings - Shopify (SHOP) upgraded from Hold to Buy by Cowen Group with a target price of $159, citing valuation advantages as the stock has dropped 30% this year and strong quarterly performance provides an attractive entry point [2] - BorgWarner (BWA) upgraded from Hold to Buy by Deutsche Bank, with the target price raised from $46 to $82, noting the company's critical transformation into the AI data center market [2] - Analog Devices (ADI) upgraded from Equal Weight to Overweight by Barclays, with the target price increased from $315 to $375, emphasizing its high industrial business share in the analog chip sector [2] - MercadoLibre (MELI) upgraded from Neutral to Overweight by JPMorgan, with the target price raised from $2650 to $2800, due to more attractive valuations following recent stock price weakness [2] - Fastly (FSLY) upgraded from Market Perform to Outperform by William Blair, with no target price set, highlighting exceptional quarterly performance driven by increased AI traffic contributions [2] Downgraded Ratings - Coinbase (COIN) downgraded from Buy to Sell by Monness Crespi, with a target price of $120, as the firm revised down earnings forecasts ahead of its quarterly report, deeming previous assumptions about a steady recovery in cryptocurrency by 2026 as overly optimistic [3] - Kraft Heinz (KHC) downgraded from Neutral to Underweight by JPMorgan, with the target price lowered from $24 to $22, despite exceeding fourth-quarter expectations, as 2026 organic sales and profit outlooks fall short of market expectations [3] - Icon (ICLR) downgraded from Neutral to Underperform by Bank of America, with a significant target price cut from $195 to $75, due to an internal investigation revealing potential revenue inflation [3] - Inspire Medical (INSP) downgraded from Overweight to Equal Weight by Wells Fargo, with the target price reduced from $145 to $70, citing uncertainties in reimbursement policies affecting stock prices [4] - Humana (HUM) downgraded from Outperform to Market Perform by Royal Bank of Canada, with the target price lowered from $322 to $189, as the risk-reward balance has become neutral following strong growth amid reimbursement policy uncertainties [4] Initiated Coverage - Microchip Technology (MCHP) initiated coverage with a Neutral rating and a target price of $80 by Barclays, noting risks of market share loss in the microcontroller sector [5] - ON Semiconductor (ON) initiated coverage with a Neutral rating and a target price of $75 by Barclays, highlighting high exposure to the Chinese market and automotive sector as a suppressive factor [5] - Sterling Infrastructure (STRL) initiated coverage with a Buy rating and a target price of $486 by Stifel, as the largest earthmoving contractor in the U.S. is expected to benefit from long-term growth themes [5] - D-Wave Quantum (QBTS) initiated coverage with a Buy rating and no target price set by Cowen Group, citing the company's leading position in quantum annealing driving growth and high margins [5] - Immunome (IMNM) initiated coverage with a Buy rating and a target price of $40 by H.C. Wainwright, as the company builds a differentiated pipeline in oncology with significant advantages in solid and hematologic tumors [5]

Core Insights - D-Wave Quantum Inc. (NYSE: QBTS) is recognized as a strong buy tech stock, with a recent price target increase from Canaccord to $43, reflecting confidence in its leadership in quantum annealing and potential in error-corrected superconducting gate model systems [1][5]. Group 1: Company Developments - D-Wave Quantum Inc. announced a $10 million, two-year enterprise quantum computing as a service agreement with a Fortune 100 company, focusing on the development and deployment of multiple quantum-powered applications [2]. - The company specializes in commercial quantum systems, software, and cloud services aimed at real-world optimization, AI, and research problems, utilizing both annealing and gate-model technologies [3]. Group 2: Market Position and Outlook - Canaccord's report highlights D-Wave's leadership in quantum annealing as a key factor supporting its upside potential in the market [5].

Core Insights - D-Wave Quantum is adopting a specialized approach to quantum computing, focusing on quantum annealing technology to solve optimization problems, which may provide a competitive edge in the market [5][8] - The quantum computing market is projected to reach $72 billion annually by 2035, presenting significant growth potential for companies like D-Wave [9] Company Overview - D-Wave Quantum is a pure play in the quantum computing sector, currently trading at $19.64 with a market cap of approximately $7.3 billion [6] - The company has secured a $10 million, two-year deal with a Fortune 100 company to explore its quantum computing capabilities, indicating potential for future growth [7] Market Position and Competition - D-Wave's focus on specialized quantum computing units may allow it to thrive in a competitive landscape dominated by larger tech companies [8][10] - The uncertainty surrounding which companies will emerge as leaders in quantum computing highlights the risks associated with investing in D-Wave, as many pure plays may not succeed [8][9] Financial Metrics - D-Wave's gross margin stands at 82.82%, indicating strong profitability potential if the technology gains traction [7] - The stock has experienced a recent decline of 3.91%, reflecting market volatility and investor sentiment [6]

Core Viewpoint - The significant investment by Norway's sovereign wealth fund in IonQ marks a potential milestone for active asset management firms entering the quantum computing sector, indicating a growing belief in the long-term growth potential of this technology [1][3]. Group 1: Investment Insights - Norway's central bank investment management (NBIM) has disclosed a long position in multiple quantum computing companies, including IonQ, Rigetti, and D-Wave Quantum, with a notable focus on IonQ [1][2]. - The total value of the holdings includes approximately $200 million in IonQ stock, $39 million in Rigetti, and $4 million in D-Wave Quantum [2]. - The investment is seen as a strategic move by a major asset management institution, potentially paving the way for other large firms to enter the quantum computing space [3][8]. Group 2: Market Outlook - Analysts believe that the quantum computing sector is on the verge of significant breakthroughs, with predictions of achieving "quantum supremacy" within the next three to five years [4][5]. - The transition from academic discussions to practical applications in quantum computing is becoming urgent, particularly regarding national security implications [4][5]. - The market for quantum computing is expected to expand, with multiple successful technology paths likely to emerge, similar to the current trends in artificial intelligence [2][3]. Group 3: Technological Developments - IonQ's advancements in quantum hardware, including achieving 99.99% fidelity in two-qubit gates, are critical milestones in the journey toward practical quantum computing [4]. - The focus is shifting from merely increasing the number of physical qubits to achieving error correction and stable logical qubits necessary for commercial viability [6][7]. - The recent progress in quantum error correction and the establishment of fault-tolerant architectures are seen as essential steps toward large-scale commercial applications [6][7].

Industry Overview - The American tech industry entered 2026 with significant size and momentum, having received approximately $178 billion in venture capital in 2024, which accounted for 57% of global venture capital [2] - In 2024, around $314 billion was raised for startups, marking a 3% increase from 2023, indicating a robust recovery in late-stage investments, particularly in infrastructure and AI [2] - AI-focused startups represented 37% of all venture funding and 17% of deals in 2024, highlighting a capital shift towards compute, model training, and applied AI layers [3] Software-as-a-Service Market - The U.S. software-as-a-service market generated about $140.7 billion in revenue in 2024 and is projected to nearly double to $271.7 billion by 2030, reflecting a compound annual growth rate of approximately 11% from 2025 to 2030 [4] Company Highlights - D-Wave Quantum Inc. (NYSE:QBTS) has a market capitalization of $6.36 billion and is noted for its leadership in quantum annealing, with a price target upside of 93.05% [9][10] - D-Wave announced a $10 million, two-year enterprise quantum computing service agreement with a Fortune 100 company, focusing on developing quantum-powered applications [11][12] - Amdocs Limited (NASDAQ:DOX) has a market capitalization of $7.68 billion and a price target upside of 28.85% [13] - Amdocs reported Q1 revenue of $1.156 billion, slightly above the forecast of $1.15 billion, and emphasized its focus on long-term growth and generative AI leadership [16][17] - Amdocs introduced aOS, an operating system designed for telecommunications, which integrates generative AI into business and operational processes [15]