Nvidia's Quantum Play Might Just Be A Mirage

Andrew Left, the famous short-seller with a knack for spotting overinflated stocks, is taking a leap of faith. This time, he’s bullish. The target? An under-the-radar quantum player called Infleqtion. Why? Because Nvidia, the titan of chips, has partnered with them. But before we all get carried away on a wave of quantum excitement, let's ask the real question: is this just another case of hopium?

Quantum Surge: A Temporary High?

Quantum stocks have been on a tear. Rigetti Computing shot up 36%, and D-Wave Quantum surged by 52% last week. The market's buzzing. But amidst this euphoria, Left singles out Infleqtion, arguing it’s undervalued solely due to its ties with Nvidia. Infleqtion, which went public in February, has suddenly become the belle of the quantum ball.

Nvidia’s recent announcement of its Ising models, designed to push quantum computing forward, named Infleqtion as a key partner. Yet, despite these ties, the market hasn’t fully noticed. Infleqtion remains priced at half the market cap of Rigetti, a stock Left’s betting against for its bloated valuation.

The Nvidia Connection: A Real Edge?

Sure, being on Nvidia’s partner list twice, for both calibration and decoding, sounds impressive. But is it really that much of an edge? Left insists it's, pointing out Nvidia didn’t even bother to select Rigetti. But just because Rigetti's ignored doesn’t automatically make Infleqtion a winner. Everyone has a plan until liquidation hits.

Left’s not stopping at Nvidia. He’s also highlighted Infleqtion’s broadening partnerships with major U.S. Department of Energy labs, including Sandia and Fermi. These collaborations sound promising, but let’s not assume they’ll translate directly into shareholder value. Bullish on hopium. Bearish on math.

Is The Market Listening?

So, what’s the takeaway? Infleqtion might be the most obvious mispricing in the quantum landscape right now, as Left suggests. Or perhaps, it's a classic beta play amidst a hot sector. The funding rate is lying to you again. Quantum computing holds potential, but potential doesn’t pay the bills. Not yet.

Nvidia’s Ising models have sparked renewed interest, yet the quantum hype could easily overextend itself. The market’s optimism about Infleqtion’s future might just be another bubble waiting to pop. Zoom out. No, further. See it now?