International Business Machines Corporation, together with its subsidiaries, provides integrated solutions and services worldwide. The company operates through Software, Consulting, Infrastructure, and Financing segments. The Software segment offers a hybrid cloud and AI platforms that allows clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on skills integration for strategy, experience, technology, and operations by domain and industry. The Infrastructure segment provides on-premises and cloud based server, and storage solutions, as well as life-cycle services for hybrid cloud infrastructure deployment. The Financing segment offers client and commercial financing, facilitates IBM clients' acquisition of hardware, software, and services. The company has a strategic partnership to various companies including hyperscalers, service providers, global system integrators, and software and hardware vendors that includes Adobe, Amazon Web services, Microsoft, Oracle, Salesforce, Samsung Electronics and SAP, and others. The company was formerly known as Computing-Tabulating-Recording Co. International Business Machines Corporation was incorporated in 1911 and is headquartered in Armonk, New York.

International Business Machines Corporation

Key Points
D-Wave Quantum’s stock has gone on a wild ride since its public debut.
It’s locking in a lot of customers but barely generating any revenue from them.
Its sky-high valuations could limit its near-term gains.
D-Wave Quantum (NYSE: QBTS), a provider of quantum computing services, went public by merging with a special purpose acquisition company (SPAC) on Aug. 8, 2022. Its stock opened at $10, was nearly delisted when it sank below $1 in 2023, but now trades at about $12.
D-Wave is still a divisive stock. The bulls are impressed by the potential uses of its quantum annealing tools in mainstream computing applications. Still, the bears claim it's grossly overvalued and can't justify its sky-high valuations. So is this volatile stock worth buying right now?
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
What sets quantum computers apart from classical computers?
Classical computers, including modern CPUs and GPUs, still store their data in binary bits, consisting of zeros and ones. Quantum computers store those zeros and ones simultaneously in qubits, which allows them to process certain computing tasks at a much faster rate.
However, quantum computers are also larger, pricier, and less power-efficient than classical computers. They also tend to output a higher percentage of errors. That's why they're still primarily used for niche research projects at government agencies and universities.
To make those systems more accessible for mainstream computing applications, many quantum computing companies are using different technologies to make those quantum processing units (QPUs) smaller, cheaper, more scalable, and more accurate.
What sets D-Wave apart from other quantum computing companies?
D-Wave builds its quantum systems with loops of superconducting metal, called "superconducting flux qubits," which allow electric currents to flow simultaneously in both clockwise and counterclockwise directions to achieve a quantum state.
That sets it apart from companies like IonQ (NYSE: IONQ), which trap ions in a quantum state with precise lasers; and IBM (NYSE: IBM), which drives electrons through similar superconducting loops but only spins them in a single direction. However, D-Wave's systems still require cryogenic refrigeration, similar to IBM's electron-driven systems. IonQ's systems don't need to be cryogenically chilled, but their lasers require constant maintenance.
D-Wave designs its own QPUs and Advantage quantum systems, and it remotely serves up its quantum computing power through its cloud-based Leap platform. It mainly provides quantum annealing services, which can be used to streamline workflows, supply chains, and logistics networks. It accomplishes this by running those processes through its quantum systems and identifying the ones that consume the least power as the most efficient.
That approach makes it a more practical fit for mainstream companies, and it already serves more than 100 customers -- including Deloitte, Mastercard, Volkswagen, Lockheed Martin, and Accenture.
How fast is D-Wave growing?
Yet D-Wave isn't generating much revenue from most of those customers, as they're mainly signed up for its low-revenue pilot and research programs on its Leap platform, rather than using its quantum annealing technologies to overhaul their entire businesses.
As a result, it still generates most of its revenue by selling its Advantage quantum systems -- but those sales are infrequent, unpredictable, and have long upgrade cycles. As the following chart illustrates, that's why D-Wave's revenue growth flatlined in 2024. However, its revenue is expected to nearly triple in 2025 as it begins selling its new Advantage2 quantum systems, which can solve 3D lattice problems 25,000 times faster than its first-generation Advantage system while consuming even less power.
Metric
2022
2023
2024
2025 (Estimate)
Revenue
$7.2 million
$8.8 million
$8.8 million
$25.4 million
Adjusted EBITDA
($48.0 million)
($54.3 million)
($56.0 million)
($70.6 million)
Net Income
($51.5 million)
($82.7 million)
($143.9 million)
($338.9 million)
Unfortunately, D-Wave's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are expected to stay negative this year as it ramps up its spending on its new systems. On a generally accepted accounting principles (GAAP) basis, its net loss is expected to more than double.
By 2027, analysts expect D-Wave's revenue to rise to $75 million, its adjusted EBITDA to improve to negative $64 million, and its net loss to narrow to $115 million. That growth should be fueled by the expansion of its Leap platform, the conversion of its pilot programs into higher-value partnerships, and its sales of new systems (which cost $20-$40 million each).
It should still have plenty of room to grow over the next decade. Dataintelo predicts the quantum annealing market will expand at a CAGR of 15.7% from 2023 to 2032. Grand View Research expects the broader quantum computing market to grow at a CAGR of 20.5% from 2025 to 2030 as it gains more momentum among mainstream companies.
Is it the right stock to buy right now?
D-Wave's future looks bright, but its biggest problem is its valuation. With an enterprise value of $9.9 billion, it's already valued at 132 times its projected 2027 sales. By comparison, IonQ -- which is expected to generate $312 million in revenue by 2027 -- trades at 55 times that estimate. Therefore, D-Wave's stock could be cut in half and still be considered expensive relative to its peers in quantum computing. I'd keep an eye on it for now, but I wouldn't rush to buy it.
Should you invest $1,000 in D-Wave Quantum right now?
Before you buy stock in D-Wave Quantum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $521,550!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,133,904!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Leo Sun has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Accenture Plc, International Business Machines, IonQ, and Mastercard. The Motley Fool recommends Lockheed Martin and Volkswagen Ag. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Is D-Wave Quantum Stock a Buy?

Looking today at week-over-week shares outstanding changes among the universe of ETFs covered at ETF Channel, one standout is the Vanguard Dividend Appreciation ETF (Symbol: VIG) where we have detected an approximate $806.7 million dollar inflow -- that's a 0.8% increase week over week in outstanding units (from 454,910,177 to 458,569,984). Among the largest underlying components of VIG, in trading today International Business Machines Corp (Symbol: IBM) is down about 0.4%, Merck & Co Inc (Symbol: MRK) is up about 0.3%, and McDonald's Corp (Symbol: MCD) is lower by about 0.6%. For a complete list of holdings, visit the VIG Holdings page » The chart below shows the one year price performance of VIG, versus its 200 day moving average:
Looking at the chart above, VIG's low point in its 52 week range is $169.32 per share, with $222.81 as the 52 week high point — that compares with a last trade of $220.74. Comparing the most recent share price to the 200 day moving average can also be a useful technical analysis technique -- learn more about the 200 day moving average ».
Exchange traded funds (ETFs) trade just like stocks, but instead of ''shares'' investors are actually buying and selling ''units''. These ''units'' can be traded back and forth just like stocks, but can also be created or destroyed to accommodate investor demand. Each week we monitor the week-over-week change in shares outstanding data, to keep a lookout for those ETFs experiencing notable inflows (many new units created) or outflows (many old units destroyed). Creation of new units will mean the underlying holdings of the ETF need to be purchased, while destruction of units involves selling underlying holdings, so large flows can also impact the individual components held within ETFs.
Also see:
Consumer Stocks Hedge Funds Are Buying
OACB Options Chain
Funds Holding ABNB
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Noteworthy ETF Inflows: VIG, IBM, MRK, MCD

Arista Networks, Inc. ANET and International Business Machines Corporation IBM are leading players in the enterprise and data-center networking space, focusing on infrastructure vital to cloud computing and AI (artificial intelligence) workloads, hybrid cloud adoption and data center growth. Arista offers one of the broadest product lines of data center and campus Ethernet switches and routers in the industry. It provides routing and switching platforms with industry-leading capacity, low latency, port density and power efficiency.
On the other hand, IBM offers cloud and data solutions that aid enterprises in digital transformation. In addition to hybrid cloud services, the company provides advanced information technology solutions, computer systems, quantum computing and supercomputing solutions, enterprise software, storage systems and microelectronics.
With a focus on hybrid cloud and AI, both Arista and IBM are strategically positioned in the cloud infrastructure market, with overlapping presence in networking infrastructure, enterprise IT solutions and cloud/data-center ecosystems. Let us delve a little deeper into the companies’ competitive dynamics to understand which of the two is relatively better placed in the industry.
The Case for Arista
Arista holds a leadership position in 100-gigabit Ethernet switches and is increasingly gaining market traction in 200- and 400-gigabit high-performance switching products. It is witnessing solid demand trends among enterprise customers backed by its multi-domain modern software approach, which is built upon its unique and differentiating foundation, the single EOS (Extensible Operating System) and CloudVision stack. Arista has made several additions to its multi-cloud and cloud-native software product family with CloudEOS Edge. It has introduced new cognitive Wi-Fi software that delivers intelligent application identification, automated troubleshooting and location services. The versatility of Arista’s unified software stack across various use cases, including WAN routing, campus and data center infrastructure, sets it apart from other competitors in the industry.
In addition to high capacity and easy availability, its cloud networking solutions promise predictable performance and programmability, enabling integration with third-party applications for network management, automation and orchestration. The company boasts a comprehensive portfolio with the right network architecture for client-to-campus data center cloud and AI networking, backed by three guiding principles. These include best-in-class, highly proactive products with resilience and zero-touch automation, with predictive client-to-cloud one-click operations with granular visibility and prescriptive insights for deeper AI algorithms. Arista is likely to benefit from its software-driven, data-centric approach, which helps customers build their cloud architecture and enhance the cloud experience they offer their clients.
However, Arista remains plagued by high operating costs. Total operating expenses in third-quarter 2025 increased around 36% to $512 million, owing to a rise in headcount, new product introduction costs and higher variable compensation expenditures. Moreover, the redesigning of products and their supply chain mechanism has eroded margins. Research & development costs were up 38.2% year over year in the third quarter to $326 million. Lingering supply bottlenecks for advanced products, a concentrated customer base and stiff competition from other networking & cloud native infrastructure vendors are other headwinds for ANET.
The Case for IBM
IBM is poised to benefit from healthy demand trends for hybrid cloud and AI, which drive the Software and Consulting segments. The company’s growth is expected to be aided by analytics, cloud computing and security in the long term. With a surge in traditional cloud-native workloads and associated applications, along with a rise in generative AI deployment, there is a radical expansion in the number of cloud workloads that enterprises are currently managing. This has resulted in heterogeneous, dynamic and complex infrastructure strategies, which have led firms to undertake a cloud-agnostic and interoperable approach to highly secure multi-cloud management, translating into a healthy demand for IBM hybrid cloud solutions.
In addition, the buyout of HashiCorp has significantly augmented IBM’s capabilities to assist enterprises in managing complex cloud environments. HashiCorp’s tool sets complement IBM Red Hat’s portfolio, bringing additional functionalities for cloud infrastructure management and bolstering its hybrid multi-cloud approach.
Despite solid hybrid cloud and AI traction, IBM is facing stiff competition from Amazon.com, Inc.’s AMZN AWS and Microsoft Corporation’s MSFT Azure. Increasing pricing pressure is eroding margins, and profitability has trended down over the years, barring occasional spikes. The company’s ongoing, heavily time-consuming business model transition to the cloud is a challenging task. Weaknesses in its traditional business and foreign exchange volatility remain significant concerns.
How Do Zacks Estimates Compare for ANET & IBM?
The Zacks Consensus Estimate for Arista’s 2025 sales and EPS implies year-over-year growth of 26.7% and 26.4%, respectively. The EPS estimates have been trending northward (up 2.9%) over the past 60 days.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for IBM’s 2025 sales and EPS implies year-over-year growth of 6.8% and 10.3%, respectively. The EPS estimates have been trending northward (up 2.4%) over the past 60 days.
Image Source: Zacks Investment Research
Price Performance & Valuation of ANET & IBM
Over the past year, Arista has gained 21.2% compared with the industry’s growth of 2.6%. IBM has surged 34.9% over the same period.
Image Source: Zacks Investment Research
IBM looks more attractive than Arista from a valuation standpoint. Going by the price/earnings ratio, IBM’s shares currently trade at 25.5 forward earnings, significantly lower than Arista’s 39.67.
Image Source: Zacks Investment Research
ANET or IBM: Which is a Better Pick?
Both Arista and IBM carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Both companies expect their sales and profits to improve in 2025. Arista has a better price performance and better estimate revisions compared with IBM, although it is a bit expensive in terms of the valuation metric. Arista has shown steady revenue and EPS growth for years, while IBM has been facing a bumpy road. Investors looking for the "next wave" in AI and cloud infrastructure may lean toward Arista, while those seeking a broad, resilient tech play may favor IBM. Although there is not much to choose from, based solely on valuation metrics, IBM seems to hold a slight edge and appears to be a better investment option for 2026.
Zacks Naming Top 10 Stocks for 2026
Want to be tipped off early to our 10 top picks for the entirety of 2026? History suggests their performance could be sensational.
From 2012 (when our Director of Research Sheraz Mian assumed responsibility for the portfolio) through November, 2025, the Zacks Top 10 Stocks gained +2,530.8%, more than QUADRUPLING the S&P 500’s +570.3%.
Now Sheraz is combing through 4,400 companies to handpick the best 10 tickers to buy and hold in 2026. Don’t miss your chance to get in on these stocks when they’re released on January 5.
Be First to New Top 10 Stocks >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

ANET vs. IBM: Which Hybrid Cloud Stock is the Better Buy for 2026?

Key Points
Many companies haven't seen earnings contributions from their generative AI initiatives so far.
However, agentic AI should be a transformative technology that boosts profitability significantly.
Increasing adoption of agentic AI should keep the AI boom going, with two winners especially standing out.
Did artificial intelligence (AI) jump-start the current bull market? No. The ongoing bull market officially began in October 2022. OpenAI launched ChatGPT in the following month. However, it's probably fair to say that AI has been the fuel that has kept the bull market going for more than three years and counting.
You won't have any trouble finding warnings that the AI boom is nearing an end. Michael Burry of The Big Short fame is betting that an AI bubble will soon burst. Even tech CEOs sound cautious. OpenAI's Sam Altman said in August, "Are we in a phase where investors as a whole are overexcited about AI? My opinion is yes."
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
I predict, though, that the AI boom won't end in 2026. And there's a simple reason why.
The "gen AI paradox"
Granted, I can understand why many are skeptical. One of the primary arguments against the notion that AI-driven stock market momentum is sustainable is that companies aren't seeing significant returns on investment (ROI) from their generative AI (gen AI) initiatives.
Global consulting firm McKinsey & Company found that more than 80% of companies that have implemented generative AI haven't seen any material positive impact on their bottom lines. The firm refers to this as the "gen AI paradox."
Why does this paradox exist? Another finding from McKinsey is telling. Only 1% of the organizations the consulting firm surveyed earlier this year reported that they viewed their gen AI initiatives as "mature."
In particular, McKinsey found that fewer than 10% of gen AI implementations for vertical use cases, where the technology is used to improve specific business processes, have progressed beyond the pilot stage. Many organizations have implemented gen AI in horizontal use cases that help improve employee productivity on some tasks. McKinsey determined that these horizontal use cases have had only limited impacts on businesses because AI isn't functioning autonomously or proactively.
Another part of the problem is the limitations of current large language models (LLMs). They're sometimes inaccurate. They're driven by user prompts. Many LLMs also have "short memories" – they can't function well when interactions are lengthy.
The next AI wave
If the gen AI paradox remains the norm, I'd be on the same page as those who think an AI bubble exists and that this bubble will soon burst. However, I believe that we're in the early stages of the next AI wave, which will render the general AI paradox obsolete.
What is this next AI wave? The adoption of agentic AI. Instead of focusing on less impactful horizontal use cases, agentic AI is primarily concerned with automating complex business processes. I fully expect that this automation will improve profitability for companies.
Agentic AI could even boost revenue in some ways. For example, imagine AI agents that identify cross-selling opportunities based on their interactions with customers.
IBM (NYSE: IBM) and Salesforce (NYSE: CRM) anticipate that 1 billion AI agents will be deployed by the end of next year. Gartner (NYSE: IT) projects that agentic AI will be embedded in one-third of enterprise software by 2028. The technology research company believes that 80% of consumer service issues will be resolved by AI agents, independent of humans, and that this will reduce costs by 30% by 2029.
Companies that don't adopt agentic AI will be left behind. Savvy CEOs recognize this. As such, I expect significant investment in agentic AI in 2026 and beyond. This will keep the AI boom going, in my view.
Ways to profit from the agentic AI transformation
How can investors profit from the business transformation that agentic AI can bring? They can invest in stocks of companies that provide the tools making this transformation possible. They can also buy the stocks of companies that are integrating agentic AI into their products. I think two stocks stand out as winners in both arenas – Google parent Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) and Microsoft (NASDAQ: MSFT).
Alphabet's Google Cloud and Microsoft's Azure cloud platforms offer products that help customers develop agentic AI solutions. Both Alphabet and Microsoft are also embedding agentic AI into their respective enterprise software suites.
Sundar Pichai, CEO of Alphabet and Google, said in his company's third-quarter earnings call that his team is "seeing strong adoption" for agents built using its new Gemini Enterprise platform. Microsoft CEO Satya Nadella mentioned during his company's Q3 call that 80% of Fortune 500 companies are using Azure AI Foundry, which helps developers build AI agents. He also noted that Microsoft has integrated "agentic workflows into everyday tools like Outlook, Word, Excel, PowerPoint, and Teams."
Alphabet and Microsoft aren't the only stocks that are likely to benefit as the adoption of agentic AI skyrockets. However, I think they will be among the biggest winners.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $521,982!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,137,459!*
Now, it’s worth noting Stock Advisor’s total average return is 981% — a market-crushing outperformance compared to 194% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Keith Speights has positions in Alphabet and Microsoft. The Motley Fool has positions in and recommends Alphabet, International Business Machines, Microsoft, and Salesforce. The Motley Fool recommends Gartner and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Prediction: The AI Boom Won't End in 2026 for This Simple Reason

NVIDIA Corporation’s NVDA shares jumped 1.7% on chipmakers and tech infrastructure having a good session.
Marvell Technology, Inc. MRVL slid roughly 7% after Carvana Co. (CVNA) claimed the S&P 500 spot many had anticipated would go to the chipmaker. CVNA soared 12.1%.
Shares of Confluent, Inc. CFLT skyrocketed 29.1% after International Business Machines Corporation IBM announced plans to acquire the data-infrastructure firm in a $11 billion deal.
Unilever PLC’s UL shares plunged 7% on consumer stocks losing out in the session.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Unilever PLC (UL) : Free Stock Analysis Report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
Marvell Technology, Inc. (MRVL) : Free Stock Analysis Report
Carvana Co. (CVNA) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for Dec 9, 2025

Key Points
High-flying, unprofitable pure-play quantum computing stocks will likely plunge if the bubble bursts.
Tech giants that are investing in quantum computing but generate revenue from other businesses should fare well.
While Microsoft, Amazon, and IBM are strong contenders, another stock is the best to own if the quantum computing bubble bursts.
Share prices sometimes soar more than the underlying businesses of companies warrant. Buying is intensified as a result of hype and investors' fear of missing out (FOMO). These are the tell-tale signs of a stock market bubble.
There's a good case to be made that quantum computing stocks are in a bubble. And all bubbles end negatively, often in spectacular fashion.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
What's the best quantum computing stock to own if the bubble bursts? I think one stands out above the rest.
Cross several quantum computing stocks off the list
We can quickly eliminate several quantum computing stocks from consideration. I'm referring to pure plays that remain unprofitable and have seen their shares deliver huge gains over the last year or so.
Rigetti Computing (NASDAQ: RGTI) ranks as one of the biggest quantum computing winners. Its shares have skyrocketed more than 6x over the last 12 months. However, Rigetti continues to lose money hand over fist, posting a net loss of roughly $201 million based on Generally Accepted Accounting Principles (GAAP) in the third quarter of 2025. The company's revenue even declined 18% year over year.
The picture is only somewhat better for D-Wave Quantum (NYSE: QBTS). The stock has soared by more than 440% over the last 12 months. While D-Wave's revenue doubled year over year in Q3, its bottom line deteriorated, with the company reporting a net loss of $140 million.
What about IonQ (NYSE: IONQ), whose market capitalization of around $19 billion makes it the largest pure-play quantum computing company? Its stock gain has been significantly lower than that of its smaller rivals. Although IonQ's year-over-year revenue growth of 222% in Q3 was impressive, its net loss of $1.1 billion was't.
If the quantum computing bubble bursts, you can bet that the share prices for all three of these companies (as well as other small players in the nascent industry) would plunge. Their valuations at this point are based largely on investors' hopes rather than solid financial underpinnings.
Strong contenders
Investors wanting to avoid the likely carnage that would result from a quantum computing bubble burst have other alternatives, though. Several tech giants are investing heavily in quantum computing, but they generate their revenue from other businesses.
Microsoft (NASDAQ: MSFT) is a great example. Its topological superconductors, or topoconductors, look promising as a way to scale quantum computers. The company's Azure platform also supports quantum computing research. However, you could remove everything Microsoft is doing related to quantum computing without significantly impacting the investment premise for the stock.
Ditto for Amazon (NASDAQ: AMZN). It dominates the e-commerce market. Amazon Web Services (AWS) ranks as the largest cloud services provider and, like Microsoft Azure, hosts developers of quantum computing systems. The company also developed the Ocelet quantum computing chip that holds the potential to drastically reduce the costs of quantum error correction.
I'd include International Business Machines (NYSE: IBM) on the list of strong contenders, too. IBM generates the majority of its revenue these days from software and consulting. The company is also a major player in quantum computing, though, and should solidify its position with the impending launch of its Nighthawk quantum processor.
The best post-bubble quantum computing stock
However, I don't think Microsoft, Amazon, or IBM rank as the best quantum computing stocks to own if the bubble bursts. That honor belongs to Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL), in my opinion.
Alphabet's Google Quantum AI is unquestionably a leader in advancing quantum computing. Its Willow chip solved a major problem in quantum error correction – reducing errors as more qubits are added. Willow also achieved quantum advantage by performing a standard benchmark calculation in seconds that would take the fastest supercomputers available today 10 septillion years to handle.
Like Microsoft, Amazon, and IBM, Alphabet doesn't need quantum computing to be successful. The company remains the 800-pound gorilla in the search engine market. Google Cloud is growing faster than AWS and Microsoft Azure. Alphabet's Waymo unit is the leader in the robotaxi market.
What about valuation? Alphabet's stock is also cheaper than Microsoft's, Amazon's, or IBM's, with a forward price-to-earnings ratio of 23.3. And its price-to-sales ratio is only a fraction of ginormous multiples for D-Wave Quantum, IonQ, and Rigetti.
Bubble or no bubble, I think the future of quantum computing is exciting. For investors who want to potentially profit from the technology without worrying about being wiped out if a bubble bursts, Alphabet looks like the best option around.
Should you invest $1,000 in Alphabet right now?
Before you buy stock in Alphabet, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Alphabet wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Keith Speights has positions in Alphabet, Amazon, and Microsoft. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, IonQ, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Best Quantum Computing Stock to Own If the Bubble Bursts (Hint: It's Not D-Wave, IonQ, or Rigetti)

For Immediate Release
Chicago, IL – December 9, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: IBM IBM, Amazon AMZN, Google GOOGL, IonQ IONQ and D-Wave Quantum QBTS.
Here are highlights from Monday’s Analyst Blog:
Quantum Computing Outlook Shines: 2 Stocks to Watch Heading into 2026
The year 2025 delivered clearer engineering roadmaps, major capital commitments and steady commercial traction in quantum computing. IBM unveiled a new IBM Quantum data center and a multi-year path toward fault-tolerant systems, giving markets confidence in its technical timetable. Amazon’s AWS introduced its first quantum chip, Ocelot, designed to cut error-correction overhead by up to 90%—a step that could significantly accelerate practical quantum hardware.
Honeywell’s Quantinuum raised about $600 million at a near-$10 billion valuation, underscoring strong private-capital conviction and gaining added credibility through a DARPA Quantum Benchmarking Initiative contract. Meanwhile, Google’s 105-qubit Willow chip ran the “Quantum Echoes” algorithm, achieving the first verifiable quantum advantage, reportedly 13,000× faster than classical supercomputers for a molecular-simulation task—widely viewed as the first real-world quantum application. IonQ and D-Wave Quantum enter 2026 as rising contenders, with IonQ advancing its roadmap and cloud access and D-Wave expanding its hybrid platform as customer adoption increases.
Together, these developments have shifted investor expectations from distant scientific promise to nearer-term commercialization. This momentum suggests continued capital deployment in 2026, more customer engagements and deeper industry-government collaborations, especially in materials science, pharmaceuticals and cloud services, supporting selective revenue growth and further valuation gains for platforms that deliver.
That said, the progress still comes with real risks. True fault-tolerant quantum computers are years away, and until companies can demonstrate millions of stable logical qubits running real workloads, investment outcomes will remain uncertain. The rewards could be large, but timelines may stretch. As a result, many investors choose staged, milestone-based funding rather than committing all their capital upfront.
Currently, it will be sensible to consider pure-play quantum stocks, provided investors understand the sector’s high-risk, high-reward profile. These companies offer the most direct exposure to breakthroughs in quantum hardware and software, but they are also more volatile and heavily dependent on technical execution. For long-term, disciplined investors, a small, diversified allocation can provide early exposure to a technology that may ultimately reshape computing, AI and cybersecurity, while keeping overall portfolio risk in check.
2 Pureplay Quantum Computing Picks
IonQ: It has delivered a strong show so far in 2025. In its third quarter, the company recorded 222% year-over-year revenue growth and also beat the high end of its guidance by 37%. The company also hit a major technical milestone, world-record 99.99% two-qubit gate fidelity and achieved its “#AQ 64” target three months ahead of schedule, meaning its “Tempo” system now unlocks a vastly larger computational space than competing commercial superconducting systems. On the corporate side, IonQ expanded aggressively. After a $2 billion equity raise, it carried $3.5 billion in pro-forma net cash and completed to strengthen its full-stack quantum platform.
This Zacks Rank #3 (Hold) stock is expected to report 2026 earnings growth of 66.2% on sales growth of 69%. Year to date, the stock has gained 26.1%.
D-Wave Quantum: Its 2025 performance indicates the company is making real commercial progress. In May, D-Wave announced general availability of its sixth-generation annealing quantum computer, Advantage2, a 4,400+ qubit system described as production-ready for real-world optimization, materials-simulation and AI workloads.
In the last-reported third quarter, D-Wave reported $3.7 million in revenues, up 100% year over year, along with improved gross margins and a €10 million 50%-capacity system deal with an Italian quantum-computing alliance for 2025–2026. Moreover, the company announced that its Advantage2 system is now operational at a major U.S. government defense subcontractor’s facility, indicating growing adoption of its quantum annealing systems for mission-critical workflows.
This Zacks Rank #3 stock is expected to report 2026 earnings growth of 9.3% on sales growth of 61.3%. Year to date, the stock has surged 221.4%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

The Zacks Analyst Blog Highlights IBM, Amazon, Google, IonQ and D-Wave Quantum

Key Points
Major stock market indexes were mixed on Thursday.
Some AI stocks rose while others fell as earnings results kept coming out.
Investors came into the new week on Monday largely in wait-and-see mode, as the Federal Reserve will begin its two-day December meeting on Tuesday. The central bank's latest pronouncement on interest rates, which it will make on Wednesday afternoon, will play a huge role in investor sentiment heading into the remainder of the holiday season and into 2026. For now, though, investors didn't see anything that warranted large moves in the primary market benchmarks. The Nasdaq Composite (NASDAQINDEX: ^IXIC), S&P 500 (SNPINDEX: ^GSPC) , and Dow Jones Industrial Average (DJINDICES: ^DJI) all saw relatively modest declines on the day.
Index
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
Daily Percentage Change
Daily Point Change
Dow
-0.45%
-216
S&P 500
-0.35%
-24
Nasdaq
-0.14%
-32
Despite the relatively calm trading session, several individual stocks saw much larger moves on Monday. Read on to learn more about some high-flying companies as well as a couple of large businesses that have suffered some recent setbacks.
Top Stock Gainers Today
CFLT: +29%
Confluent (NASDAQ: CFLT) jumped on news that tech behemoth IBM (NYSE: IBM) had entered into an agreement to acquire the open-source data streaming company. Under the terms of the deal, Confluent shareholders will receive $31 per share in cash for their stock, valuing the company at $11 billion. As IBM sees it, integrating Confluent into its own technology platforms will allow the two companies' joint enterprise customer bases to deploy new generative and agentic AI solutions more effectively than they could separately. Meanwhile, Confluent co-founder/CEO Jay Kreps was excited by what joining Big Blue could mean for his company. Given the pace at which AI service providers are scrambling to scale up their businesses to meet unprecedented demand, it wasn't surprising to see that IBM shares also managed to gain a bit of ground Monday -- something that's relatively unusual for an acquirer making a major purchase of an AI stock.
WVE: +147%
A lesser-known company led the list of top stock market gainers on Monday. Wave Life Sciences (NASDAQ: WVE) soared nearly 150% during the regular session after the clinical-stage biopharmaceutical company announced positive results from a trial of its investigational obesity treatment. Wave's WVE-007 produced improvements in body composition, including reductions in fat mass and increases in lean mass after three months. Wave also demonstrated a favorable safety profile for the candidate treatment.CEO Paul Bolno said that the results exceeded Wave's expectations and put WVE-007 on a similar level as GLP-1 weight-loss drugs. In addition, with the potential to let patients take WVE-007 just once or twice per year, Wave hopes that patients could eventually be able to enjoy favorable health benefits without the need for more frequent injections.
Top Stock Losers Today
UL: -7%
Shares of global consumer products giant Unilever (NYSE: UL) were down on Monday, but don't let the decline trick you. The move follows the company's spinoff of its Magnum Ice Cream (NYSE: MICC) unit, which started trading as an independent company on Monday. Unilever shareholders who held shares last Friday were entitled to receive one share of Magnum stock for every five Unilever shares they held, but Monday's buyers of Unilever stock were no longer eligible. Magnum, which also owns the popular Ben & Jerry's ice cream brand, didn't get a huge bump out of the gate, but many investors believe that the ice cream unit could fare better on its own than it has under the thumb of the massive consumer stock's global empire.
APD: -9%
Finally, Air Products and Chemicals (NYSE: APD) dropped over 9% on the day. The maker of industrial gases and chemicals said that it is in advanced negotiations with Norway's Yara International to create a new partnership. Air Products would contribute its industrial gas capabilities as well as its exposure to low-emission hydrogen, while Yara would bring its ammonia production and distribution network to the table. Despite the potential benefits of the deal, investors seem to believe that the amount of capital required for the investment could put pressure on Air Products' balance sheet. More broadly, hydrogen projects haven't seen as much success as some investors had hoped, but a deal would mean Air Products would have more at risk if the two parties reach a final agreement.
Should you invest $1,000 in Confluent right now?
Before you buy stock in Confluent, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Confluent wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends International Business Machines. The Motley Fool recommends Confluent and Unilever. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Biggest Stock Movers Today, Dec. 8: CFLT, UL, & More

Key Points
IBM struck a deal to add Confluent to its rapidly expanding cloud portfolio.
The data-streaming platform could accelerate IBM's AI initiatives.
IBM (NYSE: IBM) wants to be an artificial intelligence (AI) powerhouse.
The tech giant is scooping up data-streaming dynamo Confluent (NASDAQ: CFLT) to add to its growing collection of AI-enablers.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock Advisor. See the stocks »
Under the terms of the deal announced Monday, IBM will purchase Confluent for $11 billion in cash. That amounts to $31 per share, a premium of 34% compared to the stock's closing price on Friday.
Confluent would bolster IBM's AI ambitions
Confluent's open-source platform helps businesses gather and analyze data from a wide variety of sources in real time. The data-infrastructure company is thus well-positioned to benefit from the explosion in generative AI applications, which rely on high-quality, dependable data feeds to operate effectively.
"IBM and Confluent together will enable enterprises to deploy generative and agentic AI better and faster by providing trusted communication and data flow between environments, applications, and APIs [application programming interfaces]," IBM CEO Arvind Krishna said in a press release.
Confluent already serves over 6,500 clients, including more than 40% of the Fortune 500. Key customers include cloud computing titans Amazon, Microsoft, and Alphabet, cloud data leader Snowflake, and AI model provider Anthropic.
"Data is spread across public and private clouds, data centers, and countless technology providers," Krishna said. "With the acquisition of Confluent, IBM will provide the smart data platform for enterprise IT, purpose-built for AI."
Confluent should boost IBM's free cash flow by 2028
The deal comes at a time when data-driven apps are experiencing explosive growth. IBM estimates that by 2028, global data usage will more than double as the AI boom expands and over one billion new applications come online.
To seize this opportunity, IBM has made moves to expand its cloud offerings. The software colossus acquired IT optimization specialist Apptio for $4.6 billion in 2023 and cloud automation provider HashiCorp for $6.4 billion in 2024. Adding Confluent to its budding cloud ecosystem would further buttress IBM's automation, data management, and consulting businesses.
Moreover, in addition to quickening IBM's revenue growth, an acquisition of Confluent is expected to boost the company's free cash flow by the second year post-closing. The transaction is projected to be completed by mid-2026, subject to shareholder and regulatory approval.
A muted reaction to the news could be an opportunity for investors
IBM's shares were up less than 1% as of 2:35 p.m. EST on Monday following the deal's announcement.
Yet a purchase of Confluent has the potential to accelerate IBM's AI-fueled expansion strategy, which has helped to drive the venerable tech stock's price sharply higher in 2025. IBM's shares have surged over 40% so far this year.
Should you invest $1,000 in International Business Machines right now?
Before you buy stock in International Business Machines, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and International Business Machines wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $540,587!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,118,210!*
Now, it’s worth noting Stock Advisor’s total average return is 991% — a market-crushing outperformance compared to 195% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
*Stock Advisor returns as of December 8, 2025
Joe Tenebruso has positions in Amazon. The Motley Fool has positions in and recommends Alphabet, Amazon, International Business Machines, Microsoft, and Snowflake. The Motley Fool recommends Confluent and recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

AI Deal Alert: IBM To Acquire Confluent For $11 Billion. What Should Investors Know?

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in International Business Machines Corp (Symbol: IBM), where a total volume of 19,602 contracts has been traded thus far today, a contract volume which is representative of approximately 2.0 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 48.7% of IBM's average daily trading volume over the past month, of 4.0 million shares. Particularly high volume was seen for the $310 strike call option expiring December 12, 2025, with 1,000 contracts trading so far today, representing approximately 100,000 underlying shares of IBM. Below is a chart showing IBM's trailing twelve month trading history, with the $310 strike highlighted in orange:
Incyte Corporation (Symbol: INCY) saw options trading volume of 9,535 contracts, representing approximately 953,500 underlying shares or approximately 46.9% of INCY's average daily trading volume over the past month, of 2.0 million shares. Especially high volume was seen for the $95 strike put option expiring December 19, 2025, with 2,059 contracts trading so far today, representing approximately 205,900 underlying shares of INCY. Below is a chart showing INCY's trailing twelve month trading history, with the $95 strike highlighted in orange:
And CME Group (Symbol: CME) options are showing a volume of 9,151 contracts thus far today. That number of contracts represents approximately 915,100 underlying shares, working out to a sizeable 44.6% of CME's average daily trading volume over the past month, of 2.1 million shares. Particularly high volume was seen for the $275 strike call option expiring December 12, 2025, with 4,019 contracts trading so far today, representing approximately 401,900 underlying shares of CME. Below is a chart showing CME's trailing twelve month trading history, with the $275 strike highlighted in orange:
For the various different available expirations for IBM options, INCY options, or CME options, visit StockOptionsChannel.com.
Also see:
Canadian Stocks Crossing Above Their 200 Day Moving Avg
DTIL YTD Return
CNXR Insider Buying
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

	S/L 5%RUB 297.04	S/L 10%RUB 281.40	S/L 15%RUB 265.77
Day	1.23%	0.00%	0.00%
Week	26.28%	1.38%	0.01%
Month	58.48%	22.96%	5.82%

International Business Machines Corporation

Market sentiment

Overall assessment

Share of longs and shorts

Long

Short

Momentum

Protective stop levels