Shares of Xanadu Quantum Technologies (XNDU +11.95%) soared on Tuesday morning, slowing a deep downtrend over the last month. As of 11:25 a.m. ET, the Canadian quantum computing company was up by 16.8%.
The company announced a multi-year partnership with GlobalFoundries (GFS +0.14%), co-developing a large-scale manufacturing process for Xanadu's photonic quantum computing chips.
NASDAQ: XNDU
Key Data Points
From lab prototypes to 300 mm production
Photonic quantum computers run on light, and reading their answers means counting photons one at a time. Xanadu does that with superconducting nanowire single-photon detectors (SNSPDs). It then routes the photons through ultra-low-loss silicon nitride circuits that work like optical circuit boards. Both technologies are now headed for GlobalFoundries' 300 mm production line in Malta, New York.
Xanadu described the move as a shift from lab-scale prototyping to industrial-grade production. The output is meant to supply the company's upcoming fault-tolerant demonstrator systems, and the two companies are exploring additional projects. Neither side disclosed financial terms.
The relationship isn't new. Xanadu first announced a collaboration with GlobalFoundries in March 2022, designing error-correction components for the foundry's GF Fotonix platform. This is just a tighter collaboration.
Image source: Getty Images.
One good day doesn't erase a 50% drop
Today's deal fits a recent pattern. Xanadu announced a lithography collaboration with ASML (ASML -1.39%) on Sept. 9, and both partnerships target optical loss. That's the main source of errors in Xanadu's photonic architecture.
With chip-production giants ASML and GlobalFoundries by its side, Xanadu has a strong cast of supporting characters for its quest to launch large quantum computing systems with effective error correction.
A supporting cast doesn't pay the bills, though. The company booked $1.5 million of revenue last quarter against a $42.1 million net loss, and it isn't targeting serious commercial sales until 2029 or 2030. It also sold 5.5 million new shares through its equity facility with Yorkville Advisors during the quarter.
Today's pop needs some context, too. The stock is down 45.7% over the last month, while industry rival IonQ (IONQ +0.74%) gained 10.6%. The GlobalFoundries deal is a credible manufacturing step, but it doesn't change Xanadu's development timeline or the dilution risk.
