Quantum Computing Hardware Developers Index Down Last Week
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The munKNEE Quantum Computing Hardware Developers Index consists of the 9 largest QC companies trading on American stock exchanges and every constituent in the Index, except one, declined - many considerably - last week. There are an additional 4 mega-cap companies very active in QC research and development namely: Microsoft (MSFT), Nvidia Corporation (NVDA), Alphabet Inc. (GOOGL), and Amazon.com Inc. (AMZN) that are not included in the above index due to their extremely large market capitalizations.
Below is how each performed along with their performances in 2023 plus a description of their business focus, current market capitalizations, price-to-1-year earnings growth (PEG) ratios with its variance from the sector median, and the latest news, commentary and/or analysis on each company.
- Rigetti Computing (RGTI): UP 1.1% last week; UP 45.7% in past 52 weeks
- specializes in superconducting qubit technology and has developed a suite of software tools and algorithms for programming and simulating quantum computations.
- Market Capitalization: $170 million
- Price-to-1 Year Earnings Growth (PEG) Ratio: Not Applicable
- PEG Variance from Sector Median: NA
- Latest News, Commentary and/or Analysis:
- Baidu (BIDU): DOWN 0.8% last week; DOWN 14.1% in past 52 weeks
- has pioneered the development of a comprehensive quantum hardware-software integration solution, enabling access to a wide range of quantum chips through various platforms.
- Market Capitalization: $41B
- Price-to-1 Year Earnings Growth (PEG) Ratio: 0.34
- PEG Variance from Sector Median: 78% below
- Latest News, Commentary and/or Analysis:
- Micron Technology (MU): DOWN 2.2% last week; UP 45.7% in past 52 weeks
- began sampling its own HBM3 chips in July which are a 50% improvement in bandwidth over currently available solutions with mass production expected to begin early in calendar 2024, and meaningful revenue from this product in fiscal 2024.
- Market Capitalization: $92B
- Price-to-1 Year Earnings Growth (PEG) Ratio: 1.12
- PEG Variance from Sector Median: 44% below
- Latest News, Commentary and/or Analysis:
- IBM (IBM): DOWN 2.7% last week; UP 10.6% in past 52 weeks
- has its own QC chips and systems, which are available for commercial use via its Quantum business unit.
- Market Capitalization: $146B
- Price-to-1 Year Earnings Growth (PEG) Ratio: 2.84
- PEG Variance from Sector Median: 42% above
- Latest News, Commentary and/or Analysis:
- Honeywell International (HON): DOWN 2.9% last week; DOWN 4.6% in past 52 weeks
- has merged its quantum computer unit with Cambridge Quantum Computing into an entity called Quantinuum with a 54% ownership stake.
- Market Capitalization: $133B
- Price-to-1 Year Earnings Growth (PEG) Ratio: 2.81
- PEG Variance from Sector Median: 65% above
- Latest News, Commentary and/or Analysis:
- IonQ (IONQ): DOWN 3.1% last week; UP 217.3% in past 52 weeks
- develops QC hardware, is the first to have its computing systems available via all the major public cloud services, and plans to build a network of quantum computers accessible via the cloud.
- Market Capitalization: $2.6B
- Price-to-1 Year Earnings Growth (PEG) Ratio: NA
- PEG Variance from Sector Median: NA
- Latest News, Commentary and/or Analysis:
- Advanced Micro Devices (AMD): DOWN 6.0% last week; UP 119.3% in past 52 weeks
- focuses on CPUs and GPUs and has launched its MI300X, the most powerful AI chip in history with the power of 2.4 times that of Nvidia's top devices in just one chip as well as 1.6 times the memory bandwidth.
- Market Capitalization: $241B
- Price-to-1 Year Earnings Growth (PEG) Ratio: 1.76
- PEG Variance from Sector Median: 12% below
- Latest News, Commentary and/or Analysis:
- AMD Vs. The Rest Of The Processors and Graphics Chips Stocks
- Intel (INTC): DOWN 6.7% last week; UP 61.2% in past 52 weeks
- is developing its QC chips using silicon and, while not set on regaining dominance in the semiconductor industry, it could become an important segment in integrated chip design if research yields positive results.
- Market Capitalization: $203B
- Price-to-1 Year Earnings Growth (PEG) Ratio: 11.1
- PEG Variance from Sector Median: 455% above
- Latest News, Commentary and/or Analysis:
- D-Wave Quantum (QBTS): DOWN 6.8% last week; DOWN 23.9% in past 52 weeks
- is the leading provider of QC systems and software with a focus on quantum annealing technology.
- Market Capitalization: $135.6 million
- Price-to-1 Year Earnings Growth (PEG) Ratio: NA
- PEG Variance from Sector Median: NA
- Latest News, Commentary and/or Analysis:
Summary
On average, the above 9 QC stocks are DOWN 3.3% last week, on average, and are now UP 24.5% in the past 52 weeks.
Why Is the PEG Ratio Included In the Above Analyses?
Since growth is a key component of a stock's expected return, the inclusion of the PEG ratio provides a fuller picture of a company's relative value in the market. The lower the PEG ratio - lower than 1.0 is best - the more the stock may be undervalued given its future (in this case projected 1-year) earnings while a ratio greater than 1.0 generally suggests a stock is overvalued.
The PEG ratio should be used along with other tools such as the balance sheet, debt burden, and cash flow, or other valuation metrics that use the income statement. It's also important to understand things like a company's competitive advantage, its addressable market, and its long-term growth prospects.
If you are interested in investing in this sector as a whole, consider the iShares Semiconductor ETF (SOXX) which consists of 35 semiconductor stocks (including the 9 stocks in our Quantum Computing Hardware Developers Index and the 4 mega-cap companies. It was DOWN 3.0% last week and is now UP 60.1% in the past 52 weeks.
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Disclosure: None
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