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Quantum Computing

The better the computing power the better a semiconductor will perform and, as such, the race is on for companies to radically upgrade the computing power of their models. That's where "quantum computing" comes in. (Check out this video on Quantum Computing: 4 Things You Need to Know.)

Pure Play Companies

Pure-play companies concentrates all their efforts on a single line of business, and in this context, it’s quantum computing. Companies that are highly diversified, i.e., do not generate at least 50% of their sales from quantum computing products and services, such as Microsoft (MSFT), Nvidia NVDA), Alphabet (GOOGL), Amazon  (AMZN), Advanced Micro Devices (AMD), IBM, Intel (INTC), Honeywell Int'l (HON), and Baidu (BIDU) are excluded from this analysis.

The munKNEE Pure-Play Quantum Computing Stocks Portfolio

The 4 stocks in our Pure-Play Quantum Computing Stocks Portfolio were not immune from the sharp decline in the returns of the semiconductor stocks sector last week (see here) caused by the cybersecurity software provider CrowdStrike (CRWD) sending out a defective update last Friday that caused a global IT outage for Microsoft (MSFT) Windows hosts. After having gone UP 12.7% the previous week the Portfolio went DOWN 10.8% last week. Below is how each constituent in the Portfolio performed, in descending order, along with a description of their business focus.

1. Quantum Computing (QUBT): UP 3.1% last week
   • Company Focus: developing photonic qubits that offer a number of key advantages over trapped ions or superconducting qubits
   • Market Capitalization: $61M
2. Rigetti Computing (RGTI): DOWN 3.7% last week
   • Company Focus: specializes in superconducting qubit technology and has developed a suite of software tools and algorithms for programming and simulating quantum computations
   • Market Capitalization: $179M
3. IonQ (IONQ): DOWN 12.1% last week
   • Company Focus: planning to build a network of quantum computers accessible via the cloud using trapped-ion technology in its processing units which relies on suspending ions in space using electromagnetic fields, and transmitting information through the movement of those ions in a “shared trap.”
   • Market Capitalization: $1,590M
4. D-Wave Quantum (QBTS): DOWN 15.7% last week
   • Company Focus: focuses on quantum annealing technology
   • Market Capitalization: $178M

Summary

The above 4 pure-play QC stocks have an average market capitalization of $497M and were DOWN 10.8% last week.

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