Monday's Most Compelling Trades
Last week, D-Wave Quantum (QBTS) gained 48.1%. The quantum computing firm lost $0.02 a share. Revenue, however, quintupled (+507.3% Y/Y to $15 million.
D-Wave’s CEO, Dr. Alan Baratz, said that the company recognized revenue from its Advantage system sale to a research institution. The sale demonstrates that demand for quantum computing may grow over classical computing.
Viatris (VTRS) continued trending higher in the last few weeks. In the first quarter, it earned $0.50 per share (non-GAAP). Revenue fell by 11.2% Y/Y to $3.25 billion. Viatris said that over half of its U.S. revenue comes from U.S.-based manufacturing. That would mitigate the impact of tariffs on its sales.
In the chip sector, Arm Holdings (ARM) pulled back after issuing a weak forecast. In Q4, Arm posted revenue of $1.24 billion, up by 33.6% Y/Y. While the stock is overvalued, Arm has growth catalysts in the automotive and hyperscaler markets. Customers need silicon customization to achieve higher performance. By investing in the software and hardware platform, Arm will develop a long-term relationship with its partners.
ARM stock has strong buying interest in the $115 price range. It traded in a range of $80.00 to $188.75 in the last 52-week period. Investors cautious about ARM’s valuation may consider Texas Instruments (TXN), Micron Technology (MU), Nvidia (NVDA), or Taiwan Semiconductor (TSM)
