Uncle Sam's $2B Quantum Gift: Buy D-Wave, Skip Rigetti
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Uttam Dey6.5K FollowersFollow5ShareSavePlay(9min)CommentsSummaryD-Wave Quantum (QBTS) is rated Buy, benefiting from the US DoC's $2B quantum industry investment, while Rigetti Computing (RGTI) remains Hold.The $2B federal funding, distributed as cash-for-equity across 9 companies, signals a strategic shift and accelerates US quantum industry development.QBTS stands out with a ~2000% backlog growth, unique quantum annealing approach, and a more attractive ~9x forward book value multiple versus RGTI's 14-15x.Risks include potential shareholder dilution, non-binding funding agreements, and a 6–18 month timeline before capital deployment. koto_feja/E+ via Getty Images Investment Thesis The US government announced a landmark $2B sovereign funding scheme that will see the US Commerce Dept. invest $2B worth of grants and equity throughout America’s quantum computing industry. The news, confirmed by theThis article was written byUttam Dey6.5K FollowersFollowUttam is a growth-oriented investment analyst whose equity research primarily focuses on the technology sector. Semiconductors, Artificial Intelligence and Cloud software are some of the key sectors that are regularly researched and published by him. His research also focuses on other areas such as MedTech, Defense Tech, and Renewable Energy. In addition, Uttam also authors The Pragmatic Optimist Newsletter along with his wife, Amrita Roy, who is also an author on the newsletter as well as on this platform. Their newsletter gets regularly cited by leading publications such as the Wall Street Journal, Forbes, etc. Prior to publishing his research, Uttam worked in Silicon Valley, leading teams for some of the largest technology firms in the world, including Apple and Google.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.