Quantum Computing Hardware Developers Index Up 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 excluding Microsoft (MSFT), Nvidia Corporation (NVDA), Alphabet Inc. (GOOGL), and Amazon.com Inc. (AMZN) due to their extremely large market capitalizations and they are ranked below as to their performances last week, in descending order, and MTD along with:
- a description of their business focus,
- their current market capitalizations,
- their price-to-earnings (P/E) ratios,
- their price-to-earnings growth (PEG) ratios,
- the number of Wall Street analysts following each stock with
- their consensus Strong Buy/Buy/Hold/Sell ratings, and
- the percentage variance from their projected price target
- the latest news, commentary and/or analysis:
- Advanced Micro Devices (AMD): UP 18.9% last week; UP 18.2% MTD
- 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: $272B
- price-to-earnings (P/E) ratio: 63.5,
- price-to-earnings growth (PEG) ratio: 464.8,
- the number of Wall Street analysts following: 48
- their consensus Strong Buy/Buy/Hold/Sell rating: BUY
- the percentage variance from their projected price target: -11.7%
- Latest News, Commentary and/or Analysis:
- Micron Technology (MU): UP 6.2% last week; UP 2.5% MTD
- 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: $97B
- price-to-earnings (P/E) ratio: NM,
- price-to-earnings growth (PEG) ratio: NM,
- the number of Wall Street analysts following: 38
- their consensus Strong Buy/Buy/Hold/Sell rating: BUY
- the percentage variance from their projected price target: +9.2%
- Latest News, Commentary and/or Analysis:
- IBM (IBM): UP 3.4% last week; UP 4.8% MTD
- has its own QC chips and systems, which are available for commercial use via its Quantum business unit.
- Market Capitalization: $159B
- price-to-earnings (P/E) ratio: 18.3,
- price-to-earnings growth (PEG) ratio: 3.1,
- the number of Wall Street analysts following: 20
- their consensus Strong Buy/Buy/Hold/Sell rating: HOLD
- the percentage variance from their projected price target: -8.4%
- Latest News, Commentary and/or Analysis:
- Intel (INTC): UP 2.2% last week; DOWN 4.2% MTD
- 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: $206B
- price-to-earnings (P/E) ratio: 51.2,
- price-to-earnings growth (PEG) ratio: 10.5,
- the number of Wall Street analysts following: 44
- their consensus Strong Buy/Buy/Hold/Sell rating: HOLD
- the percentage variance from their projected price target: -9.3%
- Latest News, Commentary and/or Analysis:
- Honeywell International (HON): DOWN 0.2% last week; DOWN 4.3% MTD
- has merged its quantum computer unit with Cambridge Quantum Computing into an entity called Quantinuum with a 54% ownership stake.
- Market Capitalization: $134B
- price-to-earnings (P/E) ratio: 22.2,
- price-to-earnings growth (PEG) ratio: 2.8,
- the number of Wall Street analysts following: 26
- their consensus Strong Buy/Buy/Hold/Sell rating: BUY
- the percentage variance from their projected price target: +9.2%
- Latest News, Commentary and/or Analysis:
- Rigetti Computing (RGTI): DOWN 1.0% last week; UP 3.1% MTD
- specializes in superconducting qubit technology and has developed a suite of software tools and algorithms for programming and simulating quantum computations.
- Market Capitalization: $163 million
- price-to-earnings (P/E) ratio: NM
- price-to-earnings growth (PEG) ratio: NM
- the number of Wall Street analysts following: 3
- their consensus Strong Buy/Buy/Hold/Sell rating: STRONG BUY
- the percentage variance from their projected price target: 175.2
- Latest News, Commentary and/or Analysis:
- IonQ (IONQ): DOWN 4.8% last week; DOWN 12.4% MTD
- 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: $2.4B
- price-to-earnings (P/E) ratio: NM,
- price-to-earnings growth (PEG) ratio: NM,
- the number of Wall Street analysts following: 6
- their consensus Strong Buy/Buy/Hold/Sell rating: BUY
- the percentage variance from their projected price target: +44.5%
- Latest News, Commentary and/or Analysis:
- Baidu (BIDU): DOWN 5.9% last week; DOWN 13.8% MTD
- 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: $38B
- price-to-earnings (P/E) ratio: 10.1,
- price-to-earnings growth (PEG) ratio: 0.3,
- the number of Wall Street analysts following: 37
- their consensus Strong Buy/Buy/Hold/Sell rating: STRONG BUY
- the percentage variance from their projected price target: +48.2%
- Latest News, Commentary and/or Analysis:
- D-Wave Quantum (QBTS): DOWN 9.2% last week; DOWN 21.6% MT
- is the leading provider of QC systems and software with a focus on quantum annealing technology.
- Market Capitalization: $130 million
- price-to-earnings (P/E) ratio: NM,
- price-to-earnings growth (PEG) ratio: NM,
- the number of Wall Street analysts following: 5
- their consensus Strong Buy/Buy/Hold/Sell rating: STRONG BUY
- the percentage variance from their projected price target: 257.6%
- Latest News, Commentary and/or Analysis:
Summary
On average, the above 9 QC stocks were UP 4.2% last week, on average, and are now UP 0.9% MTD.
Why PEG Ratio is Included In 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.
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Disclosure: None
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