Quantum Computing (QUBT +5.86%) stock gained 5.8% through 12:45 p.m. ET Monday -- and it's got a competitor to thank for it.
This morning, D-Wave Quantum (QBTS +18.11%) announced that AT&T (T +1.04%) has signed up to use D-Wave's technology "to address complex optimization challenges across its network operations."
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Quantum's getting popular
Curiously, both D-Wave and Quantum Computing stocks are up nearly identical amounts on the news, despite Quantum Computing itself playing no role in the AT&T contract. Why might that be?
D-Wave says AT&T will apply its "annealing quantum computing technology" (which uses quantum physics to find optimal solutions to complex mathematical problems) to make AT&T's AI agents more efficient when optimizing data traffic and detecting network outages. AT&T is also evaluating other D-Wave technology to further improve its network, and says it has a "broader innovation strategy" involving "quantum computing, AI, automation, advanced analytics, and software-defined infrastructure."
From this, it sounds like AT&T isn't tying itself to D-Wave alone, but is trying out a range of technologies, including different approaches to using quantum computing to improve its operations. This may have investors thinking that Quantum Computing, too, might find win work from AT&T -- or from other telecommunications giants.
NASDAQ: QUBT
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What this means for Quantum Computing
Is this a reasonable assumption? Perhaps, but reviewing S&P Global Market Intelligence's list of the company's customers, it appears Quantum Computing isn't having much success landing major contracts so far -- certainly not as much success as D-Wave has had.
Maybe that's about to change. Analysts on average forecast more than $41 million in revenue for Quantum Computing this year, a 10x leap from trailing-12-month revenue. If Quantum Computing doesn't deliver on that forecast, however, look out below.
