Shares of American quantum computing firms, including IonQ Inc. (IONQ), Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and Quantum Computing (QUBT), plunged on November 3 after Canada’s Xanadu announced plans for a U.S. listing. Xanadu is a photonic quantum computing firm, which claims its technology offers several advantages over competitors.
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Xanadu is planning to go public in early 2026 on the Nasdaq stock exchange via a $3.6 billion special purpose acquisition company (SPAC) deal after completing a merger with blank-check firm Crane Harbor Acquisition Corp. (CHAC). The company expects to raise nearly $500 million from the SPAC deal.
What Sets Xanadu Apart?
Xanadu is building quantum computers using light particles, called photons, to perform calculations. In contrast, IonQ uses trapped ions, while Rigetti relies on superconducting qubits that require extremely cold temperatures to maintain quantum states. On the other hand, D-Wave uses quantum annealing with superconducting qubits optimized for solving specific optimization problems, making its approach different from universal quantum computing.
Xanadu claims its photonics approach offers key advantages:
- Operates at room temperature
- Easier to manufacture
- Flexible error correction
- Modular design
- Scalable through optical networking
- Fast processing speeds
- Compatibility with existing telecom systems
Xanadu’s quantum computer, called the X-Series, is the first photonic quantum computer accessible on the cloud. The company believes its technology can scale up to one million qubits by connecting multiple quantum systems using optical networking.
Furthermore, Xanadu has created error-resistant photonic qubits called GKP states directly on a chip. These qubits allow the system to correct its own errors, improving stability and reliability. This breakthrough brings quantum computing closer to practical, large-scale applications that can operate at room temperature.
Which Is the Better Quantum Computing Stock?
We used the TipRanks Stock Comparison Tool to determine which quantum computing stock is most favored by analysts.
Currently, Wall Street has assigned a “Strong Buy” consensus rating to D-Wave Quantum and IonQ, with IONQ offering greater upside potential of the two.
