The two front-runners in quantum — superconducting and trapped-ion — each carry a weakness they can't shake: one has to be chilled to extreme cold, the other is hard to scale up. What's interesting is that there's still a whole set of "alternative paths," each betting a different way: make qubits from photons (particles of light) that work at room temperature and travel down fiber · from neutral atoms held by laser beams and easily scaled to tens of thousands · from spin in silicon built on existing chip production lines · and from topological states designed so physics erases the errors from the start. Each is a bet on "leapfrogging" the leaders — and most are still private companies that the stock market can only touch indirectly.
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Theme index· base 100 · USD total return
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Why is Photonic & Other Modalities moving?
Latest
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Photonic Quantum Hardware Advances as Government Demand and Big-Tech Partnerships Accelerate
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Photonic chip manufacturing breakthroughs Xanadu cut optical loss 200x and boosted chip fabrication, then partnered with ASML to improve lithography. Fujitsu built the first diamond-spin quantum computer using photonic circuits. These advances make photonic quantum computers more scalable and commercially viable.
Shows the core technology force pushing the photonic modality toward practical, scalable hardware.
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Government contracts fuel revenue growth Infleqtion's revenue jumped 116% on NASA work and a potential $100M Commerce award. Quantum Computing Inc. signed a three-year Qatar university deal. Anderon finalized a $1B CHIPS award for a quantum wafer foundry. Government demand is a major near-term driver.
Government funding and contracts are the clearest demand driver lifting the whole theme right now.
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Big-tech partnerships validate quantum hardware Infleqtion teamed with Cisco on networked quantum systems and with Nvidia on error correction. Xanadu partnered with ASML. These deals bring credibility, resources, and integration paths, helping quantum hardware move from lab to real-world use.
Partnerships with major tech firms signal the theme is gaining mainstream industrial backing.
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Commercialization still costly and uneven Quantum Computing Inc. posted a gross loss and a 48% share drop despite revenue growth, with heavy acquisition spending. Xanadu's revenue fell sequentially. Most quantum firms remain unprofitable, showing the theme's path to sustainable profits is still uncertain.
Provides the real counterweight: revenue is growing but profits and organic demand lag, tempering the positive story.
Q3 2026
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Photonic Quantum Hardware Advances as Government Demand and Big-Tech Partnerships Accelerate
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Photonic chip manufacturing breakthroughs Xanadu cut optical loss 200x and boosted chip fabrication, then partnered with ASML to improve lithography. Fujitsu built the first diamond-spin quantum computer using photonic circuits. These advances make photonic quantum computers more scalable and commercially viable.
Shows the core technology force pushing the photonic modality toward practical, scalable hardware.
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Government contracts fuel revenue growth Infleqtion's revenue jumped 116% on NASA work and a potential $100M Commerce award. Quantum Computing Inc. signed a three-year Qatar university deal. Anderon finalized a $1B CHIPS award for a quantum wafer foundry. Government demand is a major near-term driver.
Government funding and contracts are the clearest demand driver lifting the whole theme right now.
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Big-tech partnerships validate quantum hardware Infleqtion teamed with Cisco on networked quantum systems and with Nvidia on error correction. Xanadu partnered with ASML. These deals bring credibility, resources, and integration paths, helping quantum hardware move from lab to real-world use.
Partnerships with major tech firms signal the theme is gaining mainstream industrial backing.
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Commercialization still costly and uneven Quantum Computing Inc. posted a gross loss and a 48% share drop despite revenue growth, with heavy acquisition spending. Xanadu's revenue fell sequentially. Most quantum firms remain unprofitable, showing the theme's path to sustainable profits is still uncertain.
Provides the real counterweight: revenue is growing but profits and organic demand lag, tempering the positive story.
News & notes movingPhotonic & Other Modalities
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Photonic & Other Modalities
Quantum Computing Inc. Debuts Integrated Quantum Security Platform at ECOC Exhibition
Quantum Computing Inc. is presenting an integrated quantum security platform at the ECOC Exhibition in 2026. The system combines quantum key distribution with hardware based quantum identity authentication for secure communications, built on the company's patented, award winning technology and shown in a live deployment style demonstration. The launch sits within Quantum Computing's broader effort to turn lab grade quantum technology into practical tools for secure data transmission, linking its photonics, patents and vertically integrated manufacturing to a complete security stack that network operators could test against incumbents such as Toshiba's QKD offerings or efforts from ID Quantique and similar peers. The company operates as a US based integrated photonics business supplying quantum machines to commercial and government clients, and the article cites a fair value of $18.33 for Quantum Computing. The bear case remains, as the business is spending heavily ahead of large-scale demand and turning the demo into repeatable, multi-site contracts is still unproven.
HPE Expands D&H Distribution and QuEra Quantum Partnership
D&H Distributing announced in September 2026 that it extended its U.S. distribution partnership with Hewlett Packard Enterprise, adding the full HPE Networking portfolio including HPE Juniper Networking routers and switches. Separately, QuEra Computing revealed a collaboration with HPE to integrate neutral-atom, fault-tolerant quantum systems with HPE Cray supercomputers for on-premise hybrid quantum-classical workloads. Together, the two agreements deepen HPE's reach into the channel and high-performance computing ecosystems, potentially strengthening its positioning in networking, cloud, AI, and emerging quantum-enabled workflows for enterprise and research customers. The D&H extension is seen as the more relevant near-term catalyst, broadening access to the HPE Networking and HPE Juniper portfolios for U.S. channel partners, though competitive and pricing risks in networking remain. HPE's narrative projects $55.8 billion revenue and $4.8 billion earnings by 2029, requiring 12.9% yearly revenue growth and a $3.4 billion earnings increase from $1.4 billion today, with a $65.56 fair value implying 3% upside.
HPE · Demand · Positive D&H extended its U.S. distribution partnership with HPE, adding the full HPE Networking and HPE Juniper portfolios to broaden channel reach.
HPE · Technology · Positive QuEra collaboration integrates neutral-atom fault-tolerant quantum systems with HPE Cray supercomputers for hybrid quantum-classical workloads.
Infleqtion and Cisco Launch Joint R&D to Link Quantum Systems Into Networks
Infleqtion announced a joint research and development collaboration with Cisco Systems on September 10, 2026, to connect, operate, and scale quantum systems into distributed networks. The effort pairs Infleqtion's neutral-atom quantum processors and sensors with Cisco's quantum networking stack, aiming to move standalone quantum hardware into scalable, interconnected networks; Infleqtion Chief Technology Officer Pranav Gokhale compared the shift to how the internet emerged from linked classical computers. Infleqtion brings record Q2 2026 revenue of $12.6 million, trailing 12-month revenue of $42.44 million, an updated 2026 revenue outlook of roughly $43 million, a $100 million Department of Commerce grant and a roughly four-year funding runway, but it also posted a $24.7 million operating loss in Q2 2026 against $13.5 million in revenue, and the collaboration remains an early-stage joint R&D effort that generates no immediate commercial software or hardware sales. Cisco gains an early foothold in next-generation quantum networks that expands its long-term addressable market, though it must weigh that against a more leveraged balance sheet, margin pressure from a higher hardware mix and rising memory costs. Infleqtion's path to material revenue depends on unproven milestones including 30 logical qubits in 2026 and field tests in 2027, alongside its 2027 fault-tolerant Illinois system.
INFQ · Technology · Positive Infleqtion's neutral-atom quantum processors and sensors are being integrated with Cisco's networking stack in a joint R&D collaboration aimed at scaling quantum systems into distributed networks.
CSCO · Technology · Positive Cisco's quantum networking stack is paired with Infleqtion's neutral-atom processors in a joint R&D effort to link quantum systems into scalable networks, giving Cisco an early foothold in next-generation quantum networks.
HPE to Integrate QuEra Quantum Systems With Cray Supercomputers
Hewlett Packard Enterprise said it will integrate QuEra Computing's fault-tolerant quantum systems with its Cray supercomputers for on premises high performance computing environments. The collaboration targets national labs, enterprises and high performance computing centers that want quantum and classical workloads running on a single infrastructure. QuEra's quantum technology is being positioned for scientific and energy research tasks that run alongside traditional Cray supercomputing jobs inside existing data centers. The move fits HPE's wider push to serve complex on premises workloads for governments and large enterprises, reinforcing its role as a full stack provider rather than just a server vendor. The real test will come from the first disclosed integrated testbeds or customer deployments where QuEra systems sit alongside HPE Cray supercomputers, especially at national labs or major HPC centers, along with any concrete timelines or contract details.
HPE · Technology · Positive HPE will integrate QuEra's fault-tolerant quantum systems with its Cray supercomputers, expanding its full-stack on-premises HPC offering.
QuEra Computing · Technology · Positive QuEra's fault-tolerant quantum systems will be integrated with HPE Cray supercomputers for national labs and HPC centers.
Photonic and Microsoft Team Up to Advance Quantum Resource Estimation
Photonic Inc. and Microsoft are collaborating to advance quantum resource estimation for future large-scale quantum computing systems, the companies announced in a joint press release. The effort builds on their existing strategic partnership, combining Photonic's expertise in next generation error correction codes and distributed quantum computing with Microsoft's Quantum Resource Estimation framework. The companies are exploring how architectural choices, networking requirements between quantum systems, and emerging error-correction approaches influence the resources required to run quantum algorithms at scale, including qubit counts, run time, and overall system overhead. Photonic's Quantum Low-Density Parity Check error-correction code family SHYPS is cited as an important advance in reducing the overhead required to operate large-scale quantum computers by helping systems do more with fewer physical qubits. Paul Terry, Chief Engineering Officer at Photonic, said the partnership has co-innovation at its core and aims to give the industry a clearer picture of what it will take to run practical applications on tomorrow's quantum hardware, while Matthias Troyer, Technical Fellow and CVP at Microsoft Quantum, said the work will explore how distributed architectures and error-correction advances influence future scalability and performance. In advance of the release of these capabilities on the Microsoft Quantum Resource Estimator, Photonic is inviting organizations to sign up for updates on the infrastructure, resources, and architectural considerations required to realize value from quantum computing at scale.
Photonic Inc. · Technology · Positive Photonic's SHYPS error-correction code and distributed quantum expertise are central to the collaboration with Microsoft on quantum resource estimation.
MSFT · Technology · Positive Microsoft's Quantum Resource Estimation framework is being advanced through a co-innovation partnership with Photonic on error-correction and distributed quantum architectures.
Quantum Computing Inc. Signs Three-Year Framework Agreement With Hamad Bin Khalifa University
Quantum Computing Inc. has signed a three-year Framework Agreement with Hamad Bin Khalifa University in Qatar, under which QCi will provide cloud-based access to its Dirac-3 system along with an installation in Qatar to support the country's quantum ecosystem and regional leadership. The agreement supports QCi's Entropy Quantum Computing approach, which uses quantum entropy and decoherence as computational resources rather than relying on costly error correction and highly controlled environments. The Dirac-3 platform is a third-generation, rack-mountable system designed to solve complex, real-world optimization problems at room temperature. Among peers, IonQ had progressed through three rounds of tape-outs for its first semiconductor quantum chip and received 256-qubit prototypes by the second quarter of 2026, while Rigetti's 36-qubit Cepheus system uses four 9-qubit chiplets and its Cepheus-1-108Q uses 12 interconnected 9-qubit chiplets and became generally available in April 2026. Over the past year, QCi's shares have plunged 52.4% compared with the industry's 10.9% decline, and the stock trades at a forward 12-month price-to-sales of 40.24X versus the industry's average of 4.20X.
Quantum Computing Inc. to Debut Integrated Quantum Security Platform at ECOC 2026
Quantum Computing Inc. announced it will showcase, for the first time, an integrated quantum security platform combining encryption and authentication in a single solution at the ECOC Exhibition 2026, held September 21–23 at FYCMA in Málaga, Spain. At Booth #1436, the company will demonstrate live quantum communication solutions using time-frequency and polarization-based approaches, pairing quantum key distribution with hardware-based Quantum Identity Authentication. The platform combines high-dimensional quantum key distribution, direct entanglement verification, Quantum Identity Authentication, and integrated key management in a telecom-compatible architecture, and is based on QCi's patented invention recognized with the 44th Edison Patent Award, presented to Dr. Yuping Huang and Dr. Lac Nguyen. QCi will also present at the ECOC Product Focus Theatre on Wednesday, September 23, from 14:50 to 15:10, in a session titled "The Quantum Secure Solution: Quantum-authenticated communications for broad applications in security," delivered by Massimo Di Blasio, Director, Product Line Management/Business Development. Chief Technology Officer Yong Meng Sua said the demonstrations give the telecom industry a firsthand look at how quantum technologies can strengthen the security of tomorrow's communications.
Cybersecurity & Digital Trust › Post-Quantum & Cryptographic Trust ▲Technology
Quantum Computing › Photonic & Other Modalities Technology
QUBT · Technology · Positive QCi will debut its integrated quantum security platform combining QKD and Quantum Identity Authentication at ECOC 2026, a product/technology showcase.
Anderon Finalizes $1 Billion CHIPS Award for Quantum Wafer Foundry
Anderon LLC, an IBM company, has finalized a $1 billion award under the CHIPS and Science Act with the U.S. Department of Commerce to accelerate its research and development of U.S.-based quantum wafer manufacturing. The award, first announced in May under a letter of intent between the Department and IBM, supports Anderon's state-of-the-art 300-millimeter pure-play quantum wafer foundry, which is backed by an additional $1 billion investment from IBM. Headquartered in Albany, New York, the venture serves the quantum industry as a pure-play foundry offering quantum wafer manufacturing to customers across the ecosystem. Anderon CEO Mukesh Khare said the agreement strengthens the company's ability to deliver the manufacturing scale the quantum industry needs, while Jay Gambetta, Director of IBM Research and an IBM Fellow, said Anderon's wafer fabrication focus gives IBM the foundation to execute its quantum roadmap. The company said its first quantum wafers are now running through its manufacturing facility, an early production milestone demonstrating its ability to translate advanced pre-production research into commercial-grade quantum wafer technologies.
Mitsubishi Electric Fund Invests in Optical Quantum Startup OptQC
Mitsubishi Electric Corporation announced that its ME Innovation Fund has invested in OptQC Corp., a Japanese startup developing optical quantum computer hardware, marking the fund's sixteenth investment to date. OptQC originated from the University of Tokyo and was established on technologies developed by the university's Furusawa Laboratory, a world leader in optical quantum computing. The startup's optical quantum computer uses a proprietary architecture designed to limit increases in system size as qubit counts grow, and it has already delivered its first commercial system to a public research institution as well as hardware modules to private-sector companies. Through the investment, Mitsubishi Electric expects to gain early insights into OptQC's hardware development technologies, related components, customers and market trends. The company aims to lead the field of quantum computing and create new business opportunities by applying those insights to its own quantum technologies, software implementation knowhow and application development in industrial fields.
6503.JP · Capital · Positive Mitsubishi Electric's ME Innovation Fund made its sixteenth investment, backing optical quantum startup OptQC.
OptQC Corp. · Capital · Positive OptQC receives investment from Mitsubishi Electric's ME Innovation Fund to advance its optical quantum computer hardware.
Infleqtion announced results from its integration of NVIDIA CUDA-Q Logical with the qLDPC open-source library for quantum error correction research, making it among the first organizations building on the platform NVIDIA just announced as a logical orchestration layer for fault-tolerant quantum algorithms. Working with an early-access version of CUDA-Q Logical, Infleqtion researchers constructed and validated a high-rate quantum error correction code that uses approximately six physical data qubits per logical qubit, representing about a fivefold improvement in code rate over the surface-code approach used for comparison. That physical-to-logical qubit ratio is below 10:1 and represents progress toward Infleqtion's architectural target for near-term systems. Infleqtion open-sourced qLDPC last year in work alongside researchers from JPMorgan Chase, and the company is now extending the workflow toward physical execution by adding syndrome extraction, neutral-atom noise modeling and decoder benchmarking. Chief Technology Officer and General Manager of Quantum Computing Pranav Gokhale said the code and the machine must be designed together, while NVIDIA Director of Quantum Product Sam Stanwyck said the integration shows how researchers can design and evaluate logical qubit workloads end to end. Infleqtion will share additional company updates and new milestones at Quantum World Congress in College Park, Maryland, where Chief Executive Officer Matt Kinsella will deliver a plenary keynote on September 24.
Carney Pitches 160-Plus Projects to Global Investors at Toronto Summit
Canadian Prime Minister Mark Carney is hosting a two-day investment summit in Toronto starting Monday, aiming to attract global capital for more than 160 projects as Canada navigates a trade war with the United States. Confirmed attendees include BlackRock CEO Larry Fink, Blackstone President Jon Gray, Temasek CEO Dilhan Pillay and APG Groep CEO Annette Mosman, with the summit matching roughly 100 global investors with Canadian CEOs, companies and local officials. Carney has pledged to attract C$1 trillion, or $721 billion, in investment over the next five years by cutting red tape and developing mining, energy, technology and infrastructure projects, though a government source said major deals could take 12 to 18 months to materialize. The prospectus includes 96 data centers in development, an equity investment in Xanadu's photonic quantum computer targeted for commercialization by 2029-2030, the Crawford Nickel Project, and C$900 million in financing sought for a proposed high-speed transportation pod between Calgary and Edmonton. Canada's foreign direct investment flows have averaged around C$23 billion per quarter in 2024 and 2025, up from C$16.3 billion in 2023 and C$15 billion in 2022, though BMO Capital Markets chief economist Doug Porter cautioned it is difficult to lure greenfield investment in a mature economy like Canada's.
FranceEuropean UnionUnited StatesUnited KingdomGermanySouth Korea
Photonic & Other Modalitiesimpact 4
French AI Startups Turn to U.S. Capital as Europe's Funding Gap Widens
France is producing a growing number of high-value artificial intelligence and technology companies, but their success is highlighting Europe's shortage of late-stage capital compared with the U.S., according to Bloomberg. Mistral AI raised €3 billion in Europe's largest technology funding round, quantum computing company Pasqal listed on Nasdaq, and Nvidia agreed to acquire AI platform Hugging Face for about $13 billion. U.S. startups raised $97 billion for generative AI last year, compared with $5.9 billion across Europe, according to EY data cited by Bloomberg, though France attracted more funding than the UK and Germany within Europe. Mistral's latest round valued the Paris-based company at more than €21 billion, nearly double its valuation a year earlier, led by Samsung Electronics with the Scaleup Europe Fund and Boston-based PSG Equity sharing co-lead status. Pasqal chose Nasdaq for its initial listing and plans a later Euronext listing, while Mistral Chief Executive Arthur Mensch has said an eventual IPO could help preserve the company's independence, though its listing venue has yet to be decided.
Infleqtion and Cisco Team Up to Build Networked Quantum Systems
Infleqtion announced a collaboration with Cisco to pursue joint research and development focused on connecting, operating, and scaling quantum systems. The two companies will explore architectures to link individual devices into distributed, more capable networks, an important step toward making distributed quantum systems a reality. The work pairs Infleqtion's neutral-atom quantum computers and sensors with Cisco's networking stack, and Cisco is advancing research on an end-to-end quantum networking stack designed to dynamically distribute quantum entanglement across connected devices on demand, including the recently debuted Cisco Universal Quantum Switch research prototype. The companies intend to explore convergence of sensing and compute, quantum memory and optical transduction, and network-aware quantum software. Representatives from both companies will appear at the Quantum World Congress September 23 to 25 in College Park, Maryland, and the Cisco Quantum Summit October 6 to 7, held virtually.
Quantum Computing › Photonic & Other Modalities ▲Technology
INFQ · Technology · Positive Infleqtion announced a collaboration with Cisco to jointly develop and scale distributed, networked quantum systems using its neutral-atom quantum computers and sensors.
CSCO · Technology · Positive Cisco is collaborating with Infleqtion on joint R&D for networked quantum systems, pairing its networking stack and Universal Quantum Switch with neutral-atom quantum computers.
Xanadu and ASML Collaborate on Lithography for Quantum Hardware
Xanadu Quantum Technologies and ASML have announced a collaboration to develop advanced lithography processes for Xanadu's photonic quantum hardware, aiming to reduce optical losses in quantum computing chips and accelerate the path to utility-scale quantum computing. The partnership will explore how lithography innovations can improve patterning control and lower-loss photonic structures, addressing the technical challenge of optical loss influenced by line edge roughness. Xanadu's CEO, Dr. Christian Weedbrook, emphasized the importance of fault tolerance and error correction, while ASML's Stan Baron expressed enthusiasm for supporting next-generation photonics applications. This collaboration marks a significant step for Xanadu in advancing its photonic quantum technology and solidifying its position in the semiconductor and quantum computing ecosystem.
Fujitsu unveils world's first diamond-spin quantum computer prototype
Fujitsu has announced the development of the world's first working prototype of a diamond-spin quantum computer that incorporates tin-vacancy centers into photonic integrated circuits, marking a significant step toward scalable quantum computing. The prototype operates at -271.6°C, which is higher than the typical operating temperature of superconducting quantum computers, and has been demonstrated to work with Fujitsu's Hybrid Quantum Computing Platform without requiring specialist knowledge. This achievement builds on joint research initiated in 2020 with Delft University of Technology and QuTech, and represents a milestone toward a modular architecture for scaling quantum computers. Fujitsu's roadmap targets a 250 logical qubit system by fiscal 2030 and a 1,000 logical qubit system by fiscal 2035, with the diamond-spin approach offering high fidelity and optical connectivity that could also integrate with superconducting systems.
Quantum Computing Inc. Faces Profitability Challenges Amid Revenue Growth
Quantum Computing Inc. reported second-quarter 2026 revenues of $5.6 million, up from $61,000 a year earlier, but still posted a gross loss of about $1.2 million, highlighting that production volumes are not yet sufficient to absorb fixed costs. Operating expenses surged 114% year over year to $21.8 million, driven by higher R&D personnel costs, increased sales and marketing, and $7.3 million in acquisition-related expenses. The company spent approximately $180 million in cash to acquire Luminar Semiconductor, NuCrypt, and NHanced Semiconductors in the first half of 2026, adding integration and execution risks. Peer D-Wave Quantum saw first-half revenues decline to $5.93 million from $18.10 million, while Rigetti's second-quarter revenues rose to $5.1 million, but with high customer concentration. QCi's shares have fallen 47.9% over the past year, and it trades at a forward price-to-sales multiple of 34.61X versus the industry median of 4.09X.
QUBT · Capital · Negative QCi posted a $1.2M gross loss and 114% higher opex despite revenue growth, with heavy acquisition spending and integration risk.
QBTS · Capital · Negative Peer D-Wave Quantum saw first-half revenues decline to $5.93 million from $18.10 million.
RGTI · Capital · Neutral Rigetti's Q2 revenues rose to $5.1 million but with high customer concentration noted as a concern.
Diraq to Deploy First Silicon Spin Quantum Computer in Equinix Data Center
Diraq and Equinix announced plans to deploy a Diraq quantum computer at an Equinix data center in Sydney, Australia, marking the world's first silicon spin quantum computer to operate in a shared commercial data center. The system features an eight-qubit silicon chip with self-contained cryogenic cooling and control electronics, drawing less than 20kW of power and fitting within existing data center infrastructure. Scaling to higher qubit counts requires only a chip replacement, making the system easily upgradable. The collaboration aims to test real-world performance, chart a path to commercial scale, and begin partner and customer conversations. Installation at Equinix's Sydney data center is expected to be completed in October 2026.
Diraq · Technology · Positive Diraq deploys the world's first silicon spin quantum computer in a shared commercial data center, validating its eight-qubit upgradable chip technology.
EQIX · Demand · Positive Equinix will host Diraq's silicon spin quantum computer in its Sydney data center, adding a commercial quantum computing tenant/customer.
Pasqal Goes Public via SPAC with $360 Million Cash
Quantum computing company Pasqal has gone public via a SPAC merger, gaining $360 million in cash. CEO Wasiq Bokhari said the funds will be invested in commercialization, technology development, and manufacturing expansion. Pasqal, which operates in standard data centers, counts Saudi Aramco, Credit Agricole, and LG Electronics among its customers. The company is headquartered in France and claims to be a world leader in neutral atom quantum computing.
NVIDIA's $108B Forecast Boosts Quantum Stocks QNT and QUBT
NVIDIA's forecast of $108 billion in fiscal 2027 third-quarter revenues, plus or minus 2%, is boosting quantum computing stocks, as the company's AI infrastructure push supports hybrid quantum-classical computing. NVIDIA's Data Center revenues rose 117% in the fiscal second quarter, and its NVQLink architecture and Accelerated Quantum Research Center integrate quantum processors with GPUs. Two pure-play quantum stocks, Quantinuum (QNT) and Quantum Computing Inc. (QUBT), stand out for their exposure to the sector's commercialization. Quantinuum, a founding collaborator on NVIDIA's Accelerated Quantum Research Center, saw second-quarter revenues jump 279% year over year and holds $2.1 billion in cash. QCi, which brought its NeuraWave platform to commercial readiness and completed its NHanced Semiconductors acquisition, reported second-quarter 2026 revenues of $5.6 million and $1.3 billion in cash. The broader backdrop includes over $730 billion in expected AI infrastructure spending by hyperscalers in 2026 and $12.6 billion in quantum startup investment in 2025, though moderating GDP growth and inflation above the Fed's target may make investors more selective.
Quantum Computing Inc. reported second-quarter revenue of $5.6 million, more than 9,000% higher than the $61,000 it posted a year earlier, according to its SEC filing. Revenue grew 51% from the first quarter's $3.7 million, driven by photonics product sales across government, educational, and commercial customers. Net loss narrowed to $11.8 million from $36.5 million a year earlier, helped by a shrinking paper loss on warrant derivatives, while the company ended the quarter with a $42.5 million order backlog and $1.3 billion in cash. The quarter also included the acquisition of NHanced Semiconductors, which launched a second chip fabrication facility and contributed to a 114% rise in operating expenses to $21.8 million. The stock traded near $9 on Friday, Aug. 21, part of a rally that lifted seven quantum computing stocks, including D-Wave Quantum, Rigetti Computing, IonQ, Infleqtion, IQM Quantum Computers, and IBM.
Quantum stocks surge after Q2 results show significant improvement
Quantum computing stocks surged on Friday after second-quarter earnings reports showed significant revenue gains across the sector. D-Wave climbed 7% after BMO Capital Markets initiated coverage with an Outperform rating and a $35 price target, citing an addressable market opportunity of $450 billion to $850 billion. Rigetti jumped 9% as system and component sales reached $4.1 million, up from zero a year earlier, while Quantum Computing leaped 8% after revenue rose to $5.6 million from $65,000. IQM Quantum Computers popped 7% after second-quarter revenue increased 27% year over year to $7.8 million and it guided full-year revenue of $49 million to $55 million, and Infleqtion surged 9% on a 112% year-over-year revenue jump. IonQ increased 7.5% after announcing a partnership with the Canadian Microelectronics Corporation to expand quantum computing access to Canada-based researchers and businesses.
INFQ · Capital · Positive Revenue surged 112% year over year.
IONQ · Demand · Positive Partnership with Canadian Microelectronics Corporation to expand quantum computing access to Canada-based researchers and businesses.
QBTS · Capital · Positive BMO initiated coverage with Outperform and $35 price target, citing large addressable market.
QUBT · Capital · Positive Revenue rose to $5.6 million from $65,000, showing significant growth.
RGTI · Capital · Positive System and component sales reached $4.1 million, up from zero a year earlier.
Two Under-the-Radar Quantum Stocks Catch Analysts' Attention
Two newly public quantum computing companies, Horizon Quantum Holdings and Xanadu Quantum Technologies, have caught the attention of Wall Street's top analysts. Horizon Quantum, which went public in March through a SPAC merger with dMY Squared, builds software infrastructure for quantum computing and has a market cap of about $908 million. Craig Hallum analyst Richard Shannon rates Horizon a Buy with a $21 price target, implying roughly 25% upside from its current price of $16.82. Xanadu Quantum Technologies, which merged with Crane Harbor Acquisition Corp. and began trading on March 27, uses photonic technology to build room-temperature quantum computers and has a market cap of $3.15 billion. Canaccord analyst Kingsley Crane rates Xanadu a Buy with a $34 price target, suggesting a 228% gain from its current price of $10.37.
Pasqal and Bleichroeder Acquisition Corp. II Set August 25 Shareholder Vote
Bleichroeder Acquisition Corp. II will hold a shareholder vote on August 25, 2026 to consider its proposed business combination with Pasqal Holding SAS, a global leader in neutral-atom quantum computing. The vote follows the SEC's declaration of effectiveness of the parties' joint registration statement on Form F-4. Bleichroeder shareholders of record are encouraged to review proxy materials and submit voting instructions as soon as possible. The proposed business combination remains subject to approval by Bleichroeder shareholders and other customary closing conditions. Pasqal, headquartered in France, employs approximately 300 people and serves over 25 clients and partners including Saudi Aramco, LG Electronics, Crédit Agricole CIB, CMA CGM, OVHcloud, Thales, IBM, and Sumitomo, and is backed by more than USD 300 million in total funding.
D-Wave Quantum Secures NRC Funding and Publishes Nature Gate Breakthrough
D-Wave Quantum announced in August 2026 that it secured up to C$300,000 in funding from Canada's National Research Council and published peer-reviewed Nature research on a high-fidelity, hardware-level error-correcting two-qubit gate already integrated into its dual-rail gate-model systems. The government-backed software project and fault-tolerant gate-model breakthrough underscore D-Wave's effort to commercialize both annealing and gate-model quantum platforms for complex, real-world optimization and simulation workloads. The Nature paper directly reinforces D-Wave's dual-platform story and its long-term gate-model roadmap, connecting the near-term push to make Advantage2 more useful through better software with a tangible hardware step toward fault tolerance. However, the modest NRC grant and gate breakthrough do not materially change the near-term picture, where the key catalyst remains scaling real-world deployments and the biggest risk is persistent heavy losses if rising R&D and go-to-market spend fail to translate into larger, recurring contracts.
Infleqtion Lands Quantum Grid Reliability Subcontract with Eaton
Infleqtion has entered a new subcontract with Eaton to apply quantum computing to power grid reliability and contingency analysis. The project will use Infleqtion's quantum algorithms to help utilities assess complex grid scenarios that are difficult to handle with classical computing, aiming to support more resilient grid planning as power networks become more distributed and data intensive. The work ties Infleqtion's neutral atom platform directly to a critical infrastructure workflow, alongside the company's existing focus on defense, sensing, and timing systems. Investors will watch whether this Eaton subcontract turns into follow-on utility or grid operator work that shows up in Infleqtion's reported sales, guidance, or disclosed contract wins over the next few quarters.
Quantum Computing Inc. says 70-80% of revenue tied to government contracts
Quantum Computing Inc. disclosed that roughly 70 to 80 percent of its revenue is tied to government contracting, primarily through subcontracting arrangements. CFO Christopher Roberts revealed the figure during the company's latest earnings release, which showed second quarter 2026 revenue of 5.6 million dollars, up from 61 thousand dollars a year earlier. The growth was driven by the Luminar Semiconductor, NuCrypt, and NHanced Semiconductors acquisitions rather than organic demand. The company remains in the early stages of monetization, with contract structures typically running 12 to 18 months and causing uneven quarterly revenue.
Quantum Computing › Photonic & Other Modalities Demand
QUBT · Capital · Neutral Revenue growth from acquisitions, not organic demand; government contract concentration and uneven revenue create uncertainty.
Two Quantum Stocks Offer Over 75% Upside After Q2 Earnings
Quantum Computing Inc. and Quantinuum are highlighted by Zacks Investment Research as having average analyst price targets implying more than 75% upside in August following their second-quarter results. Quantum Computing's average target of six analysts represents a 104.8% increase from its last closing price of $8.95, while Quantinuum's average target of twelve analysts implies a 76.2% gain from $56.1. The broader quantum sector saw accelerating commercialization in the second quarter, with IonQ and D-Wave reporting 60% and 62.4% of revenues from commercial customers respectively, and D-Wave's first-half bookings surging 1,120% year over year to $35.5 million. Quantinuum's second-quarter revenues jumped 279% year over year, and the company guided to $28-$32 million in 2026 revenue, supported by partnerships with Oracle and HPE and over $2 billion in liquidity following its June IPO. Quantum Computing enters the second half with a $42.5 million backlog, $1.3 billion in cash, and potential growth from its Dirac-3 deployment, NeuraWave commercial readiness, and Planck Dynamics agreement.
Infleqtion Q2 Net Loss Widens, Revenue Tops on NASA Quantum Demand
Infleqtion reported a second-quarter 2026 non-GAAP net loss of $11.82 million, wider than the $6.1 million loss a year earlier, while revenue jumped 116% to $12.6 million and beat the Zacks Consensus Estimate by 23.6%. Growth was entirely organic and quantum-driven, led primarily by execution on NASA's Quantum Gravity Gradiometer program, and remaining performance obligations rose to $21 million. About 92% of revenue came from the United States and roughly 80% from the U.S. government and agencies. The company remains on track to demonstrate 30 logical qubits on its Sqale quantum computer in 2026 and is under contract to deploy a neutral-atom quantum computer at the Illinois Quantum & Microelectronics Park in 2027. Management raised full-year 2026 revenue guidance to approximately $43 million, and the Department of Commerce selected Infleqtion for a letter of intent providing for up to $100 million in proposed funding, subject to definitive agreements and government approvals.
Quantum Computing results may signal inflection point near, analysts say
Quantum Computing's second-quarter results and the closure of its NHanced Semiconductor acquisition may indicate an inflection point is near, according to Wall Street analysts. Wedbush analyst Matt Bryson noted the company delivered a Dirac-3 optimization system to a global consulting firm and that its NeuraWave photonic reservoir computing platform reached commercial readiness, securing an initial five-unit order from Planck Dynamics under a framework agreement with an aggregate program value above $10 million. Bryson maintained a Neutral rating and $12 price target, calling Quantum Computing the most speculative public quantum name. Cantor Fitzgerald analyst Troy Jensen, with a Neutral rating and $10 price target, estimated the company could capture at least 5% of the quantum hardware, software, and services market by 2035, equating to $375 million in sales, with a present value of $159 million and an implied market cap of roughly $2.2 billion.
Quantum Computing Inc. outlines $50M–$100M capex plan for NHanced Fab 2 upgrades
Quantum Computing Inc. outlined a capital expenditure plan of $50 million to $100 million for upgrades at its newly acquired NHanced Semiconductors facility, part of its Fab 2 initiative. CFO Christopher Roberts said the spending range is probably closer to $75 million but noted the company is still in the planning stages and unlikely to spend near that amount this year. The disclosure came during the company's second-quarter 2026 earnings call, where CEO Dr. Yuping Huang highlighted the completion of the NHanced acquisition, which launched Fab 2 ahead of schedule and expands advanced packaging and semiconductor manufacturing capabilities. The company also reported that its NeuraWave photonic reservoir computing platform reached commercial readiness, with a framework agreement from Planck Dynamics carrying a potential aggregate program value of more than $10 million. Q2 revenue rose to $5.6 million from $3.7 million in the prior quarter, while contract backlog increased to $42.5 million from $16 million.
Xanadu Accelerates Chip Production, Narrows Optical-Loss Gap in Quantum Computing Push
Xanadu Quantum Technologies advanced its hardware roadmap by achieving 0.085 dB edge-coupling loss while increasing thin-film lithium niobate and silicon nitride fabrication by 75% and 50%, respectively. The aggregate optical-loss gap has been reduced by up to 200x over roughly four years, with a further 5-10x reduction still required to reach the threshold for scalable fault-tolerant operation. The company ended 2Q26 with $312.8 million of cash and raised $67.2 million through a synthetic ATM facility, supporting faster roadmap investment. Revenue increased 43% year-over-year to $1.5 million, though it declined sequentially from $2.8 million in 1Q26 due to the timing of DARPA Stage B revenue. Xanadu expects to provide a more detailed loss and hardware roadmap around the end of summer or Analyst Day, which could serve as a near-term catalyst.
Quantum Computing › Photonic & Other Modalities ▲Technology
XNDU · Technology · Positive Xanadu advanced its hardware roadmap with reduced optical loss and increased fabrication, supporting its quantum computing push.
Quantum Computing Inc. May Disappoint Investors in Q2 Earnings
Quantum Computing Inc. is poised to disappoint investors when it reports second-quarter earnings on August 10, as its recent revenue growth has been driven largely by acquisitions rather than organic expansion of its own quantum products. The company posted first-quarter revenue of $3.7 million, up from $39,000 a year earlier, but much of that increase came from buying Luminar Semiconductor and NuCrypt, while operating expenses surged 139% to $19.8 million and it recorded a net loss of $4.1 million despite holding about $1.4 billion in cash and investments. With a contract backlog of roughly $16 million and revenue estimates around $4.7 million for the second quarter, the company still faces low manufacturing utilization and ongoing integration challenges that may prevent it from demonstrating the commercial progress investors expect. If the results show only a slight revenue increase and continued heavy losses without clear scaling of its photonic foundry or Dirac systems, the stock could fall.
SEALSQ launches commercial phase of Miraex quantum photonics technology
SEALSQ Corp has started the commercial phase of quantum photonics technology from Miraex SA, following its full acquisition of the Swiss company in June 2026. The acquisition, completed on June 2, 2026, was financed through SEALSQ’s $200 million Quantum Fund, which has already deployed more than $65 million into strategic quantum technology investments. Miraex’s proprietary Thin Film Lithium Tantalate Photonic Integrated Circuit platform converts quantum information between microwave and optical frequencies, addressing a key scaling challenge in quantum computing and networking. The commercial rollout targets distributed quantum computing, quantum networking, quantum sensing, and the Quantum Orbital Space Cloud. SEALSQ says the integration strengthens its Quantum Sovereign Vertical Stack, combining secure semiconductors, post-quantum cryptography, and quantum communications into a single sovereign platform.
IonQ Is the Quantum Stock to Buy, Rigetti to Sell, Infleqtion to Hold on the Dip
IonQ is the quantum computing stock to buy on the recent dip, while Rigetti Computing should be sold and Infleqtion held, according to an analysis. IonQ leads the industry in accuracy with 99.99% 2-qubit gate fidelity, driven by its trapped-ion approach that uses charged atoms and on-chip microwave antennas for stability. Rigetti’s superconducting qubit systems offer speed but lag in accuracy, with its Cepheus-1-108Q system achieving only 99.1% fidelity and missing a DARPA program milestone. Infleqtion’s neutral-atom technology, which achieved 99.73% fidelity in 2024, balances speed and accuracy and has found a niche in quantum sensing for government clients.
Four Quantum Computing Stocks Went Public This Year—Here’s What’s Next
Four quantum computing companies—Quantinuum, Xanadu Quantum Technologies, Horizon Quantum Computing, and Infleqtion—completed initial public offerings between February and June of this year. Quantinuum, which uses trapped-ion technology, launched its Helios computer commercially in November 2025 and plans to release its Sol system in 2027 and the fault-tolerant Apollo system in 2029, though its first-quarter fiscal 2026 revenue fell 73% year over year to $5.2 million. Infleqtion, focused on neutral-atom sensing, reported $9.5 million in first-quarter revenue, up 14% from a year earlier, and raised its full-year 2026 outlook to at least $40 million after securing over $20 million in additional funding from NASA’s Jet Propulsion Lab. Xanadu, a photonic quantum computing company, posted $4.6 million in 2025 revenue against a $70.7 million net loss and recently expanded its partnership with Lockheed Martin into workforce training. Horizon Quantum, a software provider whose tools enable programs to run across different quantum hardware, agreed to buy one of IonQ’s 256-qubit systems in April but recorded a $6.5 million operating loss in the first quarter of 2026.
HQ · Capital · Negative Horizon Quantum recorded a $6.5M operating loss in Q1 2026, showing ongoing losses.
INFQ · Demand · Positive Infleqtion reported $9.5M Q1 revenue (up 14% YoY), raised FY2026 outlook to at least $40M, and secured over $20M additional funding from NASA JPL.
Infleqtion Partners with Nvidia, Nears 52-Week Low
Infleqtion has secured a partnership with Nvidia to integrate quantum computing with existing AI infrastructure, even as its stock approaches a 52-week low. The company's Sqale Quantum Processing Unit will connect to Nvidia's NVQLink, enabling hybrid quantum-classical supercomputing without replacing AI data centers. Infleqtion reported first-quarter revenue of $9.5 million, up 14% year over year, and serves hundreds of customers in government, enterprise, and research sectors. It expects full-year 2026 revenue of at least $40 million, though its current $2 billion market cap implies a price-to-sales ratio of 50 if that target is met. The company is also developing an atom-based radio-frequency sensing platform in response to growing customer interest.
Multibeam secures first Taiwan order for its second-generation multi-column e-beam lithography platform
Multibeam Corp. has received its first order from Taiwan, with National Tsing Hua University selecting the company's newly introduced MBX platform for advanced semiconductor research and joint development projects with leading Taiwanese chipmakers. The multi-column electron-beam lithography system will be installed in a new NTHU facility and is scheduled for delivery in 2027. It will support work on next-generation advanced packaging, photonics, quantum computing, and rapid prototyping, enabling high-resolution direct writing of chip-to-chip interconnect layers and heterogeneous integration without masks. The order expands Multibeam's installed base, which already includes SkyWater Technology's Quantum Foundry.
RIBER reports 19% revenue growth in first half of 2026
RIBER, the global leader in molecular beam epitaxy equipment for the semiconductor industry, reported a 19% increase in first-half 2026 revenue to €12.8 million. Systems sales were €7.7 million from three machine deliveries, while services and accessories revenue surged 71% to €5.1 million. The total order book stood at €26.8 million, down 3% year-on-year, partly due to French authorities refusing export licenses worth over €8 million. The company is advancing its ROSIE platform for silicon-based integrated photonics, with a second unit shipping in July to a U.S. quantum computing player and first BTO/STO samples expected in the fourth quarter.
Lake Street Reiterates Buy on Quantum Computing with $16 Target
Lake Street reiterated a Buy rating on Quantum Computing Inc. with a price target of $16. The firm cited the company's recent acquisition of NHanced Semiconductors, completed on June 23 and valued at $73.1 million in cash and stock plus up to $72.0 million in additional earnout payments. Lake Street views the deal as a follow-on to the Luminar Semiconductor acquisition that closed in February, together deepening Quantum Computing's photonics manufacturing and advanced-packaging capabilities. Management is framing the acquisition as the launch of Fab 2, arriving years ahead of the company's roadmap, and the firm believes it can accelerate the shift from research and prototyping toward scalable commercial production.
Pasqal appoints former HPE HPC and AI leader Mark Armstrong as Chief Commercial Officer
Pasqal has appointed Mark Armstrong as Chief Commercial Officer for Europe, the Middle East, and Africa and the Asia-Pacific region. Armstrong previously led Hewlett Packard Enterprise's High Performance Computing and AI business across EMEA. He will focus on accelerating commercial deployment of Pasqal's neutral-atom quantum systems among enterprise and government customers in energy, financial services, advanced materials, and high-performance computing. Pasqal currently has seven quantum systems in production across four countries, accessible on-premises and via cloud partners including Google Cloud, Microsoft Azure, OVHcloud, and Scaleway. The company is pursuing a Nasdaq listing in partnership with Bleichroeder Acquisition Corp. II.
