2 AI and Quantum Stocks Set for Strong Q3 Earnings Growth
Semtech (SMTC) and D-Wave Quantum (QBTS) are highlighted for strong Q3 earnings growth. SMTC expects $410M revenue, up 54% YoY, and $1.05 EPS, up 119% YoY, driven by data-center sales growth. QBTS shows 1,120% YoY bookings surge and $100M CHIPS Act funding. Both sectors benefit from AI infrastructure spending and quantum computing government support.
How this was made
The 30-second read
Why it matters
Guidance and funding news suggest upside for Semtech and mixed outlook for D‑Wave, with sector‑wide benefits from increased quantum investment.
Market read
Both stocks are positioned for growth amid AI infrastructure spending and new quantum funding, making them relevant for investors tracking tech sector trends.
What to watch
Potential supply‑chain constraints and competition in AI chips could temper growth expectations.
Background
The article recaps Q3 guidance for Semtech and D‑Wave Quantum and highlights a new DOE quantum funding competition.
Ticker impact
Semtech guidance projects Q3 revenue of $410 million and EPS of $1.05, indicating strong earnings growth.
potential upside as market prices in strong Q3 revenue
Guidance exceeds prior expectations, indicating demand for data‑center components.
D‑Wave Quantum expects a Q3 loss of $0.09 per share but revenue growth, and secured up to $100 million under the CHIPS Act.
limited downside pressure, possible modest rally on funding news
Losses expected, but new DOE competition funding and CHIPS Act support could buoy sentiment.
Market effects
Strong AI data‑center demand and new quantum funding could boost semiconductor and quantum‑computing sectors.
U.S. tech stocks may see modest gains, while quantum‑focused firms could attract investor interest.
DOE's $215 M quantum program signals broader governmental support for the sector worldwide.
Counterpoint
Semtech's guidance may be overly optimistic if data‑center spending slows; QBTS could face longer path to profitability.
Key entities
- companySemtech Corporation
US semiconductor company providing data‑center components.
- companyD‑Wave Quantum Inc.
Quantum‑computing hardware and services provider.
