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D-Wave Quantum or a Quantum ETF: Which Is the Better Bet?

By Nathan Reiff. Publication Date: 7/23/2026.

As quantum computing investors eagerly await the latest updates from leading firms during the second-quarter earnings season in August, the threat posed by emerging names is becoming increasingly clear.

This is particularly true given that some of the top pure-play quantum companies have faced punishing share-price pullbacks that have persisted throughout the summer. D-Wave Quantum Inc. (NYSE: QBTS) is one of those firms, with a year-to-date (YTD) return of more than negative 32% and a fairly steady downward trajectory since early June.

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A tiny glass device smaller than a fingertip could redefine AI hardware. Nvidia CEO Jensen Huang calls it essential for AI to scale, while Sequoia Capital labels it a holy grail.

Stocks tied to this technology have already surged 133 percent, 217 percent, and 320 percent in recent months, according to Brownstone Research analyst Jason Bodner, who identified Nvidia at 4.50.

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The latest earnings updates may provide some clarity on which companies are best positioned to turn their shares around. However, a bigger question on some investors' minds may be whether the quantum industry has developed enough to warrant investing in individual companies at this stage. After all, many firms are either pre-profit or have minuscule top- and bottom-line figures relative to their valuations. A broader approach to the space may be a better bet for now.

The Case for Quantum ETFs at This Stage

A handful of individual quantum companies have begun to distinguish themselves from the broader group, but perhaps not enough to clearly identify a leader. All firms continue to wrestle with commercializing their products on a large scale, converting technological advances into solutions that address common, real-world needs, and expanding their customer bases.

With this in mind, a safer bet than taking a chance on one or more specific companies may be to target exchange-traded funds (ETFs) that track the quantum space. Investors should be aware, though, that some of these funds have a broader technology focus, so finding a true quantum ETF may require some research.

A fund like the WisdomTree Quantum Computing Fund (BATS: WQTM) is one such option. The fund tracks an index of pure-play quantum names and more established industry leaders with exposure to quantum computing. It holds a basket of about 46 names that are fairly evenly weighted.

WQTM focuses on U.S. companies but also holds international names, providing a broad view of the nascent quantum space.

While its assets under management (AUM) are modest at less than $300 million, its trading volume is fairly high by comparison.

Perhaps most importantly, the diversification this fund provides has helped it post YTD returns of more than 20%, beating the broader market on the strength of the quantum names that have stood out this year. With all of this available for a moderate expense ratio of 0.45%, WQTM provides a compelling access point to the sector.

Another option is the Corgi Quantum Computing ETF (BATS: CQTM), an actively managed fund launched in May 2026.

With an even more modest AUM and low trading volume, this fund is just getting off the ground.

However, it stands apart for its active approach and nimble portfolio management, and it holds just 21 positions.

With an annual fee of 0.35%, CQTM is actually cheaper than many passively managed alternatives. Still, its returns are difficult to assess at this early stage, making CQTM a more speculative play.

The Case for D-Wave

If there is a single quantum stock to focus on instead of a broad ETF, D-Wave would be a strong candidate. The main reasons the company stands out have remained consistent for many quarters: D-Wave is the only major pure-play firm taking a two-pronged technical approach to the quantum challenge; it continues to maintain strong cash reserves while remaining willing to deploy them for strategic acquisitions and other projects; and its backlog and demand continue to grow.

A key question when D-Wave releases its second-quarter 2026 earnings will be whether it can reignite its revenue growth engines. The company has achieved several crucial R&D milestones recently but has not executed on sales with the same degree of success as some of its rivals.

The company's valuation is also a concern. Even after the recent dip, it trades at a price-to-sales (P/S) ratio of 267.9, which is extremely high given its first-quarter revenue of less than $3 million. Something will likely have to give—either sales will need to improve considerably, the share price may need to fall further, or both—for cost-conscious investors to take the stock more seriously.

This has not stopped Wall Street from continuing to view QBTS as a strong pick. There are 14 Buy ratings, while Sell and Hold ratings total just three, indicating broad support from analysts. They also expect the share price to more than double.

3 Photonics Companies Making Quantum Tech Possible

By Nathan Reiff. Publication Date: 7/21/2026.

All of a sudden, photonics seems to be one of the hottest fields among tech enthusiasts. Optical and photonics technology is increasingly important for AI applications that must handle tremendous data throughput beyond the limits of traditional wiring. With photonics, data can move through fiber-optic networks at far higher speeds than copper allows, with the added benefits of lower latency and greater energy efficiency.

Beyond its current applications, photonics may become even more important in the coming years. Many of the benefits that photonics technology provides to AI applications also apply to quantum technology. For investors, an alternative to picking up pure-play quantum technology firms like IonQ Inc. (NYSE: IONQ)—despite the many reasons these companies may appeal to those with a healthy appetite for risk—is to look at companies making photonics tools that could power next-generation quantum technology down the line.

Lumentum's Major Rally May Pose Valuation Concerns, But Revenue Momentum Is Real

Nvidia's CEO says this small device is critical for AI growth (Ad)

A tiny glass device smaller than a fingertip could redefine AI hardware. Nvidia CEO Jensen Huang calls it essential for AI to scale, while Sequoia Capital labels it a holy grail.

Stocks tied to this technology have already surged 133 percent, 217 percent, and 320 percent in recent months, according to Brownstone Research analyst Jason Bodner, who identified Nvidia at 4.50.

Click now to discover Bodner's top AI stock pick before others catch on

Lumentum Holdings Inc. (NASDAQ: LITE) is a photonics technology firm that got off to a strong start to the year and has done a fairly good job of maintaining that momentum. Overall, LITE stock has doubled year to date (YTD), despite trading sideways in recent months.

While the massive rally has not alleviated concerns about Lumentum's valuation—the firm currently trades at nearly 142 times earnings—analysts remain largely optimistic about its prospects. Two-thirds of the 21 analyst ratings for LITE shares are Buys, and Wall Street anticipates more than 32% additional upside.

Lumentum's ability to weather the storm in recent weeks, as AI stocks have taken a hit, is impressive but perhaps not surprising given the company's strong recent performance. In the latest quarter, for example, Lumentum increased revenue by about 90% year over year (YOY) to $808 million, while its non-GAAP operating margin came in at a strong 32.2%. Management expects another record quarter, with no signs of slowing sales momentum.

A Smaller Alternative That Has Room to Grow

At a $4 billion market cap, IPG Photonics Corp. (NASDAQ: IPGP) is just a fraction of the size of the $60 billion Lumentum, but investors shouldn't overlook this fast-growing alternative. IPGP shares are up about 37% YTD after the firm reported a strong quarter earlier in the year. Q1 2026 revenue was $265 million, a 17% YOY improvement, and bookings improved as well. Adjusted earnings per share (EPS) of 29 cents more than tripled YOY, thanks in large part to the strength of IPG's industrial solutions business.

IPG benefits from multiple avenues within the photonics space, and its products and services also cover medical, semiconductor, defense and other applications. This helps make the firm resilient in the face of sector-wide turmoil, although it does not shield IPG from ongoing tariff headwinds.

Nonetheless, a strong balance sheet—including $813 million in cash and short-term investments as of the end of the last quarter—should give IPG the necessary runway to continue supporting its expansion. That will be vital if the firm hopes to compete with larger players in the years to come. With only nine analyst ratings, IPGP shares are not nearly as well covered as rivals such as LITE. However, two-thirds of analysts view IPGP stock as a Buy, with about 40% in projected upside.

A Speculative Play With Big Defense Plans

nLight Inc. (NASDAQ: LASR) is comparable in size to IPG, although its 100% YTD return outshines that of its competitor. The company reported a 55% YOY increase in revenue in the latest quarter. However, sales were much more modest in absolute terms, with nLight reporting $80.2 million in revenue for the period. Margins and adjusted EBITDA were also strong, suggesting that the company should be able to continue strengthening its balance sheet.

As a pre-profit company, nLight necessarily carries a higher level of risk than the other firms on this list.

Still, a massive new contract with the Pentagon should help strengthen the company's defense-focused business for some time to come. Regardless, investors should view this stock as more speculative than the other photonics businesses.

That has not stopped analysts from adopting a bullish viewpoint. LASR has 11 Buy ratings and a single Sell, and analysts see moderate upside even after its sizable YTD rally.