Meet the Monster Quantum Computing Stock That Continues to Crush IonQ, Rigetti Computing, and Nvidia

Quantum computing stocks remain some of the hottest opportunities in the artificial intelligence (AI) space, and one name in particular sticks out among the pack

Over the last couple of years, investors have witnessed a sharp rise in certain pockets of the nology realm thanks to rising interest in artificial intelligence (AI)

Companies operating across industries such as semiconductors, enterprise software, and cloud computing have been particular beneficiaries of AI investment so far

Within the last year, however, quantum computing stocks have started to emerge as a new trend fueling the AI revolution

IonQ, Rigetti Computing, and even Nvidia are common names surrounding the quantum computing narrative

However, what if I told you there is another quantum computing stock that has outperformed all three of the leaders above

Let's explore the driving force behind D-Wave's monster price action and assess if now is a good opportunity to scoop up some s

Quantum computing could be the next pillar supporting the AI revolution While quantum computing is not yet widely commercialized, nology enthusiasts have become interested in its development due to its advantages over classic computers

Quantum computers are believed to possess superior cessing power compared to today's most sophisticated computers

In theory, this could lead to greater efficiency advantages in solving complex blems across industries such as energy, financial services, and pharmaceuticals

Considering that the world's largest AI developers such as Alphabet, Microsoft, Amazon, IBM, and Nvidia are all building quantum computing hardware and software, I'm optimistic that the opportunity could be quite lucrative in the long run

Image source: Getty Images

D-Wave Quantum's growth is jaw-dropping, but there's a catch The charts below illustrate growth in D-Wave's revenue and cash balance over the last year

As indicated by the steep slope of each line, D-Wave's growth appears to be hitting a new stride

With that in mind, it becomes that the majority of D-Wave's revenue base over the last 12 months was concentrated in a single quarter

To me, this makes the company's trajectory somewhat uncertain and potentially lumpy given the lack of scale D-Wave has achieved so far

Per the company's 10Q filing, D-Wave raised this capital through an at-the-money (ATM) offering

Another way of looking at this is that D-Wave is not yet generating fitability that it can reinvest back into the

Rather, the company is taking advantage of its rising stock price by issuing new s at an inflated valuation in order to raise capital

Is D-Wave Quantum stock a buy right now

QBTS PS Ratio data by YCharts Not only do I think D-Wave's valuation is unsustainable, but management may think so, too

In my eyes, a move this could suggest that management understands that the company's stock is overbought, and therefore is willing to dilute holders in order to take advantage of a frothy, overstretched valuation to raise additional funds

While I understand the excitement surrounding quantum computing, I think s of D-Wave Quantum have gotten ahead of themselves

The company is trading for a premium valuation, despite being a highly speculative opportunity at this time

I would pass on in D-Wave Quantum stock right now and instead opt for more established companies with strong footholds in the AI landscape

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors

Adam Spatacco has positions in Alphabet, Amazon, Microsoft, and Nvidia

The Motley Fool has positions in and recommends Alphabet, Amazon, Cisco Systems, International Machines, Microsoft, and Nvidia

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