Video Summary
Three recent breakthroughs (Nvidia's Icing software, IonQ's photonic interconnect, Rigetti's 100+ qubit AWS availability) pushed quantum computing into investable territory.
IonQ (IONQ) leads public quantum hardware with >$100M revenue, a $370M backlog, and a photonic link between chips.
Rigetti (RGTI) offers fast superconducting chips and strong Nvidia integration but is earlier-stage with lower revenue.
D‑Wave (QBTS) is the only company with paying customers today, growing revenue, and a recent acquisition adding gate-based tech.
Host’s top pick by risk/reward: IonQ; recommended diversification: own all three to spread execution risk.
Nvidia released Icing (software to split workloads between GPUs and quantum chips), IonQ demonstrated a photonic interconnect linking two quantum processors, and Rigetti made a 100+ qubit processor available on AWS.
IonQ has >$100M annual revenue, a ~$370M backlog, strong year-over-year growth, and a photonic interconnect that improves scalability—giving it the best risk-to-reward among the three.
IonQ uses trapped-ion qubits focusing on low error rates and chip interconnects; Rigetti uses superconducting qubits that run faster and integrate with Nvidia stacks but face scaling/error challenges; D‑Wave specializes in quantum annealing with paying customers and recently added gate-based tech via acquisition.
Diversify across the three companies to spread execution risk: Rigetti for Nvidia-aligned upside, D‑Wave for commercial exposure, and IonQ as the primary growth/risk-reward pick.
Key risks include fragile qubits and decoherence, scaling and engineering challenges, execution risk for early-stage firms, volatile stock prices, and the potential for prolonged operating losses as companies invest in scaling.
"Three big breakthroughs just kicked off the quantum computing era, and it's already something we can invest in."
Following the development of artificial intelligence (AI) technologies, quantum computing is becoming an investment opportunity due to major advancements in the field.
Jensen Huang of Nvidia previously stated that practical quantum computers were 15 to 30 years away, but has since revised his outlook, indicating they are closer than once thought.
This shift in perspective led to a significant market reaction where stocks of quantum computing companies like IonQ and Regetti plummeted initially but rebounded with new developments.
"Nvidia is building the infrastructure between everyone else's quantum chips and their own GPUs."
Nvidia has started to develop critical infrastructure to support quantum computing, enhancing the interaction between GPUs and quantum processors.
Their recent launch of an open-source software stack called Icing will enable better collaboration between GPUs and quantum computers, significantly improving computational tasks.
This indicates that Nvidia does not believe quantum computers will outright replace GPUs, rather they will work in tandem to tackle specific workloads, forming a hybrid computing future.
"Quantum computing isn't science fiction anymore; it's an entire market sector that's finally worth investing in."
The current market features prominent companies in quantum computing such as IonQ (INQ), Regetti (RGTI), and D-Wave (QBT).
IonQ is focusing on linking quantum chips using photons to enhance scalability.
Regetti has made strides by offering the first significant quantum processor available for rental on AWS, targeting broader access to quantum capabilities.
D-Wave is actively working on solving significant challenges for major clients, establishing itself as a key player in the market.
"The global quantum computing market is expected to grow at a 36% compound annual growth rate for the next decade."
The quantum computing market is projected to increase in size dramatically and could reach $40 billion by 2035, paralleling the rapid growth trajectory of the AI market.
This surge signals favorable conditions for investors looking to capitalize on early-stage technology developments.
As traditional venture capital has made it challenging for everyday investors to access promising new tech firms, platforms like VCX provide investment opportunities in private pre-IPO companies within this burgeoning sector.
"Ion Q is the closest thing to being the Nvidia of quantum computing."
Ion Q is currently recognized as the leader in public quantum hardware, working with trapped ion systems that utilize charged atoms as qubits. This method allows for the production of some of the highest-quality qubits in the industry, slowing down their operations but dramatically reducing errors.
A significant advantage of Ion Q's technology is the ease with which multiple chips can be networked together to scale quantum capabilities. Traditional chips can only manage a few hundred qubits, but tens of thousands are necessary for advanced tasks like cryptographic processing and chemistry simulations.
Last week, Ion Q announced a groundbreaking achievement by demonstrating the first photonic interconnect between two quantum processors, marking a pivotal milestone in the quest to connect chips and scale quantum computing capabilities, which has been an industry goal since the 1990s.
The company reported a remarkable 429% year-over-year increase in revenue, totaling $62 million last quarter, and achieved a total of $130 million for the full year, making it the only public quantum computing company to exceed the $100 million revenue threshold.
Ion Q's backlog is also considerable, currently standing at approximately $370 million, indicating strong future growth potential, as they anticipate an additional $235 million in revenue for the current year.
It is essential to note that while Ion Q reported a net income of $754 million last quarter due to a non-cash warrant reevaluation, the company actually experienced an operating loss, and management expects losses to increase as they continue to invest in their systems.
"If quantum computers will work with GPUs instead of replacing them, then Regetti is set up to win big."
Regetti Computing offers a unique opportunity to invest directly in quantum technology due to their strong connection with Nvidia’s NVQ Link and CUDAQ stack, allowing enterprises that use Nvidia's stack to leverage Regetti’s hardware for quantum computing.
Their quantum computers, which rely on superconducting systems, operate significantly faster than Ion Q's trapped ion systems but struggle with error control, making them harder to scale effectively.
Despite their promising technology, Regetti is still considered a pre-commercial company, with a modest Q4 2025 revenue of $1.9 million, reflecting an 18% decline year-over-year. Their cash position stands at about $590 million, allowing them a runway of approximately 30 quarters or around 7.5 years before financial pressures might become critical.
Investors should focus less on current revenue figures and more on milestones such as the increase in qubit numbers, customer uptake on AWS, and strategic partnerships that could enhance their market position.
"D-Wave is the only company with a commercial product that customers actually pay for today."
D-Wave offers a unique commercial product specialized for solving optimization problems rather than functioning as a general-purpose quantum computer. Their systems are currently utilized by renowned organizations like Volkswagen, Google, NASA, and Lockheed Martin, who pay for the workloads they run on D-Wave's systems.
The company recently acquired Quantum Circuits, Inc. for $550 million, adding a gate-based quantum platform to their existing offerings. This broadens their capabilities, allowing them to cater to both specialized and general-purpose quantum computing needs.
Last quarter, D-Wave reported $2.8 million in revenue, a 19% year-over-year increase, with a full-year revenue of $24.6 million, marking a remarkable growth of 179%. Furthermore, new bookings reported in early 2026 surpassed their entire previous year's revenue, indicating a strong upward trend.
D-Wave maintains a solid cash position of around $630 million, designed to support its operations for almost 9 years while it works toward profitability. This financial stability presents a favorable outlook for investors willing to engage with a company poised for success in the evolving quantum computing space.
"If you can stomach some execution risk and volatility for a shot at owning Nvidia's quantum future, Regetti may be the stock for you."
Regetti is highlighted as the smallest company among competitors in the quantum computing space, but it presents an opportunity for investors interested in Nvidia's quantum future.
D-Wave is suggested for investors who want stable, immediate returns since it has paying customers already and offers exposure to two different quantum architectures: quantum annealing and gate-based superconducting architecture.
D-Wave's growth rate is noted as almost matching that of ION Q, however, it starts from a smaller revenue base and possesses enough cash to sustain operations for nearly nine years.
"All three companies have fundamentally different approaches to building quantum computers at scale, and I don't know enough about the space to reliably pick a winner."
The speaker expresses a preference for owning all three noteworthy companies in the quantum computing sector—Regetti, D-Wave, and ION Q—due to their distinct methodologies in quantum computing.
The decision to diversify stems from uncertainty in confidently choosing one company over the others, which emphasizes the unpredictable nature of this emerging industry.
"If I had to pick a winner based purely on market cap versus revenue, backlog, and growth potential, I'd pick ION Q."
ION Q is recommended as the leading investment choice based on its substantial annual revenue exceeding $100 million, a backlog of $370 million, and an impressive growth rate exceeding 200% per year.
The company is viewed as possessing the best risk-to-reward ratio compared to its peers, which can be appealing for investors focusing on growth potential in the tech sector.
"One thing's for sure, Quantum Computing is quickly moving from science fiction to a future worth investing in."
Quantum computing is rapidly transitioning from a theoretical concept into a viable investment opportunity, indicating its potential significance in the tech landscape.
The speaker invites interaction from viewers regarding their investment intentions in the sector as companies prepare to report their earnings, highlighting a moment of anticipated market activity.
