Ed Lin

Google Quantum AI announced on Dec. 9 that its latest quantum chip, dubbed Willow, "paves the way to a useful, large-scale quantum computer." Shares of parent company Alphabet rose in the wake of the news, but quantum-computing shares skyrocketed, and their year-to-date rises have left Nvidia stock in the dust.

Three quantum companies recently offered stock -- at what now look like bargain prices.

From Dec. 9 through Wednesday's close, Alphabet stock has tacked on 11%, while shares of Quantum Computing, Rigetti Computing, and D-Wave Quantum have soared 183%, 146%, and 94%, respectively, based on recent prices of $21.19, $10.99, and $9.02. The three quantum-computing stocks are up 2,217%, 1,000%, and 925%, respectively, in 2024, compared with the relatively puny 176% rise in Nvidia stock. Embattled Intel stock, meanwhile, has tumbled 59% this year.

Quantum Computing, an integrated photonics and quantum-optics technology company with a NASA contract, announced on Dec. 10 a private placement of 8.46 million shares and an offering of 1.54 million shares, both priced at $5 apiece. Quantum Computing will see $46.2 million of net proceeds from both, according to a form the company filed with the U.S. Securities and Exchange Commission, and management "will have broad discretion" in how the money will be used.

Quantum Computing didn't immediately respond to Barron's request to disclose the identity of the buyer in the private placement.

The latest stock offerings come on the heels of a mid-November offering that saw Quantum Computing sell 16 million shares priced at $2.50 each, with gross proceeds totaling $40 million.

D-Wave, which brands itself as the first commercial supplier of quantum computers, said on Dec. 12 that it completed the sale of $175 million of stock, priced at the market, or ATM. The company said that from Dec. 9 through 12, it sold $75 million of stock at an average price of $4.81 per share, and the other $100 million was from an earlier ATM program that had $79.1 million of issuance left as of Sept. 30.

The money will go toward working capital and capital expenditures, and "the funding substantially improves the Company's financial strength, positioning D-Wave for the future and enabling it to fully execute against its product and go-to-market strategies and roadmaps," D-Wave said in a press release.

On Nov. 26, Rigetti Computing said it agreed to sell 50 million shares priced at $2 each to two institutional investors in a direct offering, for gross proceeds of $100 million. It wasted no time putting the money to work. On Dec. 9, Rigetti said in a regulatory filing that "using cash on hand," it paid in full and terminated a loan agreement with Trinity Capital for a total of about $10.5 million, including about $9.5 million of outstanding loan balance, plus accrued but unpaid interest, fees, and end-of-term payments of about $0.9 million, plus a prepayment fee of about $75,900.

Rigetti, which says it has operated quantum computers over the cloud since 2017, didn't immediately respond to Barron's request for the identities of the institutions that bought its stock.

CVI Investments of Grand Cayman may have been one, as it disclosed owning 25 million Rigetti shares, an 8.9% stake, on Dec. 5. Heights Capital Management of San Francisco, the investment manager of CVI, is the overall owner of all shares owned by CVI, and Heights didn't own any Rigetti stock as of Sept. 30. Heights shares common ownership with investment firm Susquehanna International Group of Bala Cynwyd, Pa. Susquehanna didn't immediately respond to a request inquiring if CVI bought the shares through Rigetti's private placement.

Inside Scoop is a regular Barron's feature covering stock transactions by corporate executives and board members -- so-called insiders -- as well as large shareholders, politicians, and other prominent figures. Due to their insider status, these investors are required to disclose stock trades with the Securities and Exchange Commission or other regulatory groups.

Write to Ed Lin at edward.lin@barrons.com and follow @BarronsEdLin.

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

December 18, 2024 12:31 ET (17:31 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.