Since last Friday, shares of D-Wave Quantum (NYSE: QBTS) fell nearly 15% as of the market close on Thursday. The stock also traded lower on Friday. While the quantum computing sector experienced some good news this week, D-Wave also announced an at-the-market (ATM) stock offering to potentially raise new capital.

A potentially dilutive event

D-Wave's ATM offering is with several brokerages and investment banks and will allow the company from time to time to conduct the "issuance and sale" of common stock for up to $400 million. The word issuance indicates that new shares could be offered to raise capital, which would be dilutive to existing shareholders.

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Image source: Getty Images.

In a filing with the Securities and Exchange Commission( SEC), D-Wave also said that cash balances on hand as of March 31 are enough "to fund the company to profitability." D-Wave plans to use any potential proceeds for general corporate purposes, including funding capital expenditures (capex), acquiring new companies, or expanding the business, as well as for general working capital purposes.

The news is disappointing because it comes during a week when Nvidia's CEO Jensen Huang praised quantum computing. "We are within reach of being able to apply quantum computing in areas that can solve some interesting problems in the coming years," he said. Few CEOs can move the market, but Huang is one of them, being one of the most influential people in the artificial intelligence (AI) sector. Other quantum computing stocks jumped this week.

What a run it's been

Shareholders never like to see dilutive capital raises, but with D-Wave trading at an extremely high valuation, this is often when management will try and bring in additional capital to fund growth. Either way, it's been an incredible run. D-Wave's stock is up 1,268% over the last year and currently trades at 191 times forward sales.

While D-Wave appears to be making real progress toward eventually mass producing quantum computers, it's very difficult to buy stocks at these kinds of meteoric valuations. I wouldn't recommend anything more than a small, speculative position at this time.

Should you invest $1,000 in D-Wave Quantum right now?

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If everyone only invested in what they fully understood, I suspect quite a few stocks wouldn't exist today. We can probably put quantum computing stocks in that category. The quantum physics used by companies pioneering quantum computing can make your head spin.

Fortunately for many investors, quantum computing stocks do exist. Two of them have been especially big winners -- D-Wave Quantum (NYSE: QBTS) and IonQ (NYSE: IONQ). D-Wave Quantum has delivered the more impressive performance over the last 12 months. Is it a better quantum computing stock than IonQ?

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The case for D-Wave Quantum

Despite the market turbulence experienced in 2025, D-Wave Quantum has generated a staggering return of nearly 1,200% over the last 12 months. Even with this tremendous gain, though, the company's market cap remains below $5 billion.

D-Wave's financial performance has been impressive, too. The company's revenue soared 509% year over year in the first quarter of 2025. Its cash position totaled $304.3 million at the end of Q1. D-Wave's management believes that's enough to fund operations until the company achieves profitability.

The huge stock gains and strong revenue growth are the result of increasing interest in D-Wave's technology. The company boasts the world's largest quantum computer. D-Wave recently introduced its most advanced system to date, its sixth-generation Advantage2 quantum computer. CEO Alan Baratz said this new system is "so powerful that it can solve hard problems outside the reach of one of the world's largest exascale GPU-based classical supercomputers."

D-Wave has completed more than 20 proof-of-concept engagements over the last 18 months. Its customer base includes Deloitte, Fort Otosan (a Turkey-based automaker owned by Ford and Koç Holding), Lockheed Martin, and Japan Tobacco).

The case for IonQ

IonQ hasn't delivered the kind of gains that D-Wave has over the last 12 months, but it's nonetheless been sizzling hot. The quantum computing pioneer's stock is up roughly 380%. Thanks to this great return, IonQ's market cap now tops $9 billion.

At first glance, you might wonder about IonQ's growth. The company's revenue dipped slightly year over year in Q1. However, IonQ's revenue has increased by a compound annual growth rate of 170% since 2021. The company expects that 2025 revenue will nearly double year over year based on the midpoint of its guidance range.

IonQ believes that its ion trap architecture gives it distinct competitive advantages. Its quantum computers can operate at room temperature instead of requiring cooling to zero degrees Kelvin. The company thinks its error correction process is superior to rivals. IonQ also maintains that its architecture is more modular and scalable than the competition.

All three of the largest cloud platforms offer IonQ's quantum hardware, a claim no other quantum computing company can make. IonQ has a growing customer base that includes big companies such as Ansys, AstraZeneca, and Toyota Tsusho.

Better quantum computing stock?

Both D-Wave Quantum and IonQ could have tremendous growth potential. Quantum computing could transform many areas, including drug discovery, logistics, and materials science. Consulting firm McKinsey & Co. estimates that quantum computing and networking could create up to $880 billion in economic value by 2040.

However, these two companies also face significant risks. Neither D-Wave nor IonQ is profitable yet. Although their respective technological approaches show promise, the competition is intense, with some rivals possessing much greater financial resources.

If I had to pick one of these quantum computing stocks right now, I'd go with IonQ. It's generating more revenue than D-Wave. Its intellectual property portfolio is larger, with 950 patents related to quantum computing and networking that should soon be under the company's control.

I also like IonQ's business development strategy. Recent acquisitions of ID Quantique and Lightsynq position IonQ well in the quantum networking space.

Investing in IonQ isn't for everyone because of the inherent risks with a small company in a fledgling market. However, I think aggressive investors could see market-beating returns from this stock over the long run.

Should you invest $1,000 in IonQ right now?

Before you buy stock in IonQ, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and IonQ wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $868,615!*

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Not for the first time in their relatively brief existences, quantum computing stocks shot well higher in value on Thursday. That wasn't due to any fresh innovation, discovery, or major business move. Rather, it seemed to have more to do with some grand pronouncements by a single quantum company executive.

Nevertheless, as a writer, I can confirm that words have power, and these were powerful enough to lift the sector as a whole. Industry standard-bearers Quantum Computing (NASDAQ: QUBT), Rigetti Computing (NASDAQ: RGTI), and D-Wave Quantum (NYSE: QBTS) all saw their share prices inflate at double-digit rates. The stocks rose a respective 15%, 24%, and 26% on the day.

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The king of quantum?

Those market-moving words came from the leader of one of their peers, IonQ (NYSE: IONQ). That morning, Barron's published an interview with the company's CEO, Niccolo de Masi, in which he waxed extremely bullish about the prospects for his business. This was clearly taken by the article's readers as likely prosperity for the wider quantum space.

Image source: Getty Images.

De Masi is clearly not the shy and publicity-adverse type of corporate leader, as he made a series of grand pronouncements about IonQ.

In his eyes, the company is the quantum sector equivalent of graphics processing unit (GPU) king Nvidia or advanced processor specialist Broadcom. As such, IonQ's ultimate prominence and power will be imitated by businesses hoping to catch some of its magic.

In fact, added the executive, "they have always copied and followed us."

That isn't really accurate, as the varied quantum companies currently traded on the stock market are following different paths to hoped-for success. In IonQ's case, it's a "full-stack" business, aiming to provide hardware, the software that runs on it, and applications for control and access.

In a way, though, Quantum Computing, Rigetti, and D-Wave are followers. IonQ was among the first pure-play quantum companies to become publicly traded. That pedigree is a factor that has helped drive its market cap to over $11 billion at present. That dwarfs its three peers, as the most richly capitalized of the trio -- D-Wave -- is currently valued by investors at under $5.6 billion.

Rivers of red ink

Nevertheless, investors should always be wary of hype, especially when applied to an early-stage industry struggling to get on its financial feet -- like quantum.

While the technology has indisputably immense potential, getting a quantum business to the point where it's efficient and profitable is quite the challenge. None of the prominent quantum companies -- yes, including IonQ -- has yet to stem their often very deep net losses.

There are potentially significant catalysts on the horizon. One that could change the landscape dramatically is Congress's National Quantum Initiative Reauthorization Act.

As the name implies, this would restart a federal program aimed at boosting quantum, with public funding for businesses actively involved in such work. Capital for cash-hungry companies on the cutting-edge of new technologies is almost always scarce; passing the act into law would alleviate that nagging and persistent headache.

I have to emphasize here that such industry-boosting factors are only potential at this point, not reality. And that goes double for any talk of a single quantum company or a clutch of them becoming the new Nvidia or Broadcom.

Both of these successful enterprises are the products of years of patient business development and often heavy research and development expenditure. Neither blasted into the world suddenly as cash-gushing winners.

Spread the wealth

At this point, it's hard to place bets on which quantum company, or companies, will pull ahead with offerings irresistible to customers thirsty for exponential increases in computing power.

Given that, it's probably a good move for quantum bulls to spread out their investments among the leading stocks in the space. I feel all of the aforementioned titles can potentially leverage the technology into robust profits eventually -- and yes, that includes IonQ, all hype and hot air aside.

Should you invest $1,000 in Quantum Computing right now?

Before you buy stock in Quantum Computing, consider this:

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Since last Friday, shares of D-Wave Quantum (NYSE: QBTS) have rocketed nearly 52%, as of 12:17 p.m. ET Thursday. Earlier this week, the company announced general availability of its sixth-generation Advantage2 quantum computing system.

High praise for D-Wave's latest system

Several companies have been working to bring quantum computing to the masses. Quantum computing, or super computers, use quantum mechanics to solve complex equations and problems much faster than a typical computer, and even surpass the skills of experts.

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D-Wave CEO Dr. Alan Baratz called the company's new computer "... a system so powerful that it can solve hard problems outside the reach of one of the world's largest exascale GPU-based classical supercomputers." The new system is now available in 40 countries.

In a report on quantum computers, analysts at JPMorgan Chase praised the company's progress and technological innovation.

"Their newly announced Advantage2 prototype features over 1,200 qubits with 20-way connectivity, with a goal to reach 7,000 qubits in the full Advantage2 system," the report said. "This prototype claims significant speedups over classical supercomputers."

A qubit is the basic unit of data used in quantum computing. Regular computes only leverage bits, or the smallest unit of data that is used to build the foundations of a regular computer.

The best of the bunch?

Quantum computing is a tough industry for retail investors to wrap their heads around. But unlike many of its peers in the sector, D-Wave's technology appears ready to hit the ground running, and its super computers are already in use.

In its first-quarter earnings release, the company also announced a smaller loss than one year prior, and significant revenue growth, so there seems to be something there. Still, with the stock trading at close to a $5.5 billion market cap, I'd keep positions smaller and more speculative for now.

Should you invest $1,000 in D-Wave Quantum right now?

Before you buy stock in D-Wave Quantum, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $644,254!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $807,814!*

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JPMorgan Chase is an advertising partner of Motley Fool Money. Bram Berkowitz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends JPMorgan Chase. The Motley Fool has a disclosure policy.

• A small fraction of all No. 1 hits have ruled the Billboard Hot 100 for 10 weeks or more.
• "Old Town Road" and "A Bar Song (Tipsy)" are tied for the all-time record with 19 weeks apiece.
• Listen to the complete playlist on Business Insider's Spotify.

The Billboard Hot 100 is widely considered to be the definitive all-genre singles chart in the US.

Since it was launched in 1958, well over 1,000 songs have reached the coveted No. 1 spot, but far fewer have reigned long enough to reach double-digit weeks — or, even more impressively, surpass that milestone.

According to Billboard, only 4% of all No. 1 hits have topped the Hot 100 for 10 weeks or more. All 46 songs that have achieved the feat are listed below, in chronological order.

1. "You Light Up My Life" by Debby Boone

"You Light Up My Life" was the first song in history to chart at No. 1 for 10 weeks.

2. "Physical" by Olivia Newton-John

"Physical" charted at No. 1 for 10 weeks.

3. "End of the Road" by Boyz II Men

"End of the Road" charted at No. 1 for 13 weeks.

4. "I Will Always Love You" by Whitney Houston

"I Will Always Love You" charted at No. 1 for 14 weeks.

5. "I Swear" by All-4-One

"I Swear" charted at No. 1 for 11 weeks.

5. "I'll Make Love to You" by Boyz II Men

"I'll Make Love to You" charted at No. 1 for 14 weeks.

7. "One Sweet Day" by Mariah Carey and Boyz II Men

"One Sweet Day" charted at No. 1 for 16 weeks, making Boyz II Men the first artist in history to earn double-digit weeks atop the chart with three different songs.

8. "Macarena (Bayside Boys Mix)" by Los Del Rio

"Macarena (Bayside Boys Mix)" charted at No. 1 for 14 weeks.

9. "Un-Break My Heart" by Toni Braxton

"Un-Break My Heart" charted at No. 1 for 11 weeks.

10. "I'll Be Missing You" by Puff Daddy and Faith Evans featuring 112

"I'll Be Missing You" charted at No. 1 for 11 weeks.

11. "Candle in the Wind 1997/Something About the Way You Look Tonight" by Elton John

"Candle in the Wind 1997/Something About the Way You Look Tonight" charted at No. 1 for 14 weeks.

12. "The Boy Is Mine" by Brandy and Monica

"The Boy Is Mine" charted at No. 1 for 13 weeks.

13. "Smooth" by Santana featuring Rob Thomas

"Smooth" charted at No. 1 for 12 weeks.

14. "Maria Maria" by Santana featuring The Product G&B

"Maria Maria" charted at No. 1 for 10 weeks.

15. "Independent Women, Pt. 1" by Destiny's Child

"Independent Women, Pt. 1" charted at No. 1 for 11 weeks.

16. "Foolish" by Ashanti

"Foolish" charted at No. 1 for 10 weeks.

17. "Dilemma" by Nelly featuring Kelly Rowland

"Dilemma" charted at No. 1 for 10 weeks.

18. "Lose Yourself" by Eminem

"Lose Yourself" charted at No. 1 for 12 weeks.

19. "Yeah!" by Usher featuring Lil Jon and Ludacris

"Yeah!" charted at No. 1 for 12 weeks.

20. "We Belong Together" by Mariah Carey

"We Belong Together" charted at No. 1 for 14 weeks.

21. "Gold Digger" by Kanye West featuring Jamie Foxx

"Gold Digger" charted at No. 1 for 10 weeks.

22. "Irreplaceable" by Beyonce

"Irreplaceable" charted at No. 1 for 10 weeks.

23. "Low" by Flo Rida featuring T-Pain

"Low" charted at No. 1 for 10 weeks.

24. "Boom Boom Pow" by The Black Eyed Peas

"Boom Boom Pow" charted at No. 1 for 12 weeks.

25. "I Gotta Feeling" by The Black Eyed Peas

"I Gotta Feeling" charted at No. 1 for 14 weeks.

26. "We Found Love" by Rihanna featuring Calvin Harris

"We Found Love" charted at No. 1 for 10 weeks.

27. "Blurred Lines" by Robin Thicke featuring T.I. and Pharrell

"Blurred Lines" charted at No. 1 for 12 weeks.

28. "Happy" by Pharrell Williams

"Happy" charted at No. 1 for 10 weeks.

29. "Uptown Funk!" by Mark Ronson featuring Bruno Mars

"Uptown Funk!" charted at No. 1 for 14 weeks.

30. "See You Again" by Wiz Khalifa featuring Charlie Puth

"See You Again" charted at No. 1 for 12 weeks.

31. "Hello" by Adele

"Hello" charted at No. 1 for 10 weeks.

32. "One Dance" by Drake featuring WizKid and Kyla

"One Dance" charted at No. 1 for 10 weeks.

33. "Closer" by The Chainsmokers featuring Halsey

"Closer" charted at No. 1 for 12 weeks.

34. "Shape of You" by Ed Sheeran

"Shape of You" charted at No. 1 for 12 weeks.

35. "Despacito" by Luis Fonsi and Daddy Yankee featuring Justin Bieber

"Despacito" charted at No. 1 for 16 weeks.

36. "God's Plan" by Drake

"God's Plan" charted at No. 1 for 11 weeks.

37. "In My Feelings" by Drake

"In My Feelings" charted at No. 1 for 10 weeks, becoming Drake's third entry on this list. He holds the record for the most solo songs with double-digit weeks atop the Hot 100.

Drake also holds the record for the most No. 1 song debuts in history, with nine to his name.

38. "Old Town Road" by Lil Nas X featuring Billy Ray Cyrus

"Old Town Road" holds the record for the longest stretch at No. 1 with 19 weeks. It also became the fastest song in history to be certified diamond and won two Grammy Awards.

39. "The Box" by Roddy Ricch

"The Box" charted at No. 1 for 11 weeks.

40. "Butter" by BTS

"Butter" charted at No. 1 for 10 nonconsecutive weeks.

41. "Easy On Me" by Adele

"Easy On Me" charted at No. 1 for 10 nonconsecutive weeks, becoming Adele's second song to reach the milestone.

42. "As It Was" by Harry Styles

"As It Was" charted at No. 1 for 15 nonconsecutive weeks, the longest reign ever for a British artist.

43. "All I Want for Christmas Is You"

Nearly three decades years after its release, "All I Want for Christmas Is You" returned to No. 1 in December 2022 for its milestone 10th week atop the chart.

The holiday classic is Carey's third song to earn double-digit weeks atop the Hot 100, making her the third artist and first woman to achieve the feat thrice.

In 2024, the song experienced another holiday surge, earning its 18th total week at No. 1 and surpassing "One Sweet Day" as Carey's longest-reigning hit on the Hot 100. It trails the all-time record by just one week.

44. "Last Night" by Morgan Wallen

"Last Night" charted at No. 1 for 16 nonconsecutive weeks, despite Morgan Wallen's many controversies.

45. "A Bar Song (Tipsy)" by Shaboozey

"A Bar Song (Tipsy)," Shaboozey's breakout hit, charted at No. 1 for 19 nonconsecutive weeks, the most ever among solo hits. It's tied with "Old Town Road" for the all-time record.

46. "Luther" by Kendrick Lamar with SZA

"Luther" was released as track three on Kendrick Lamar's album, "GNX," and originally debuted at No. 3 on the Hot 100.

Shortly after Lamar's Super Bowl halftime show (which SZA joined to perform both "Luther" and their 2018 hit "All the Stars"), "Luther" rose to the top spot. It has dominated the chart for 10 consecutive weeks.

The looming installation of one of D-Wave Quantum's (NYSE: QBTS) quantum computing systems was the news drawing investors to the company's stock over the past few days. As the market prepared to take a break for the weekend D-Wave Quantum shares had risen almost 18% in value week to date as of early Friday morning, according to data compiled by S&P Global Market Intelligence.

Sweet home Alabama

On Wednesday, D-Wave announced that, in conjunction with local tech company Davidson Technologies, it had completed the assembly phase of a D-Wave Advantage2 annealing quantum system in Huntsville, Alabama. The company added that with this part of the project complete, the installation is nearly finalized.

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When complete, the system will sit in a secure facility tailored for the needs of quantum computing, D-Wave added. The security is also appropriate given the company's list of federal government and aerospace industry clients.

In the press release heralding the milestone, D-Wave wrote that the Advantage2 "will be the first annealing quantum computer hosted on-premises in the state, offering new pathways for the development of quantum optimization applications designed to support mission-critical challenges in areas including national defense."

Gazing toward the future

Quantum computing promises to be the great technological revolution of our age, with machines that crunch data exponentially faster than traditional computers. At the moment that's more hope than reality, which is why a concrete development like the one D-Wave announced tends to excite the market. Investors will be hoping for continued encouragement from the company.

Should you invest $1,000 in D-Wave Quantum right now?

Before you buy stock in D-Wave Quantum, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $566,035!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $629,519!*

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Investors have spent the past couple of years acquainting themselves with artificial intelligence (AI) and quantum computing. These emerging technologies could represent the most significant leaps forward for humankind since the internet decades ago.

Of course, such groundbreaking technologies can be lucrative investment opportunities. The Defiance Quantum ETF (NASDAQ: QTUM) could be a smart way to add exposure to artificial intelligence and quantum computing to your portfolio.

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The exchange-traded fund has plunged nearly 20% from its high amid the market's recent volatility, one of its steepest declines since it began trading in 2018.

Here are three reasons to buy this AI quantum computing stock on the dip.

1. Quantum computing and AI have significant growth potential

It's impossible to predict what AI and quantum computers could make possible over the coming decades. You might see things you only thought were possible in science fiction. Humanoid robotics is already on the way, which reminds me of a famous action movie from the 1980s featuring a particular cyborg sent from the future.

Plus, AI and quantum computing could eventually be worth trillions of dollars. Research from McKinsey estimates AI could generate $23 trillion in annual economic value by 2040. Meanwhile, quantum computing could start slowly. Technology experts have speculated that practical quantum computers could still be several years away.

However, they could be a game changer once they get here. Boston Consulting Group's report on quantum computing forecasts that quantum computers will create $5 billion to $10 billion in annual economic value by 2030, but projects this to increase to $450 billion to $850 billion by 2040. Time will tell how accurate such estimates and timelines are, but the financial and real-world potential is exciting, to put it mildly.

2. An ETF means you don't have to pick winners

AI and quantum computing present quite a challenge for investors. Most individuals, let alone professional investors, aren't experts in these complex fields.

Therefore, picking individual winners could prove extremely challenging. That's a great reason to invest in a diversified instrument such as the Defiance Quantum ETF. It represents a global basket of 70 companies involved with AI and quantum computing -- someone else did the hard work of picking high-quality stocks in these advanced technology industries.

The fund's top holdings include:

Data source: Defiance ETFs.

Since AI and quantum computing have immense potential but are still so unpredictable, casting a wide net is a wise strategy. It could be a case of the 80-20 rule, where a select few companies produce a majority of the value in AI and quantum computing.

The ETF's construction spans various companies, industries, and countries, reducing risk by limiting the top holding to just 3.31% of the fund's total assets. Additionally, the expense ratio (0.4%) appears reasonable, considering the simplicity and diversification you gain in return.

3. The Defiance Quantum ETF has outperformed the market

Many quantum computing stocks have been highly volatile, and investors who bought at the wrong time have endured steep losses.

The Defiance Quantum ETF has been around since 2018, and has outperformed the Nasdaq Composite, a prominent technology-leaning U.S. stock market index, since about 2021:

QTUM Total Return Level data by YCharts

Past performance does not guarantee future results, but it demonstrates the effectiveness of a diverse approach to speculative industries like AI and quantum computing. I don't see why the Defiance Quantum ETF can't continue to perform well as these technologies mature.

Should you invest $1,000 in ETF Series Solutions - Defiance Quantum ETF right now?

Before you buy stock in ETF Series Solutions - Defiance Quantum ETF, consider this:

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ETF Series Solutions - Defiance Quantum ETF wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $561,046!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $606,106!*

Now, it’s worth noting Stock Advisor’s total average return is 811% — a market-crushing outperformance compared to 153% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.

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*Stock Advisor returns as of April 21, 2025

Justin Pope has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Palantir Technologies. The Motley Fool recommends Alibaba Group and RTX. The Motley Fool has a disclosure policy.