Europe's Pursuit of Tech Sovereignty Takes Center Stage
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Newsfilter
- Tech Sovereignty Focus: The G7 summit and VivaTech conference in France highlight policymakers' and tech executives' concerns over American AI dominance, emphasizing the urgency for Europe to establish technological sovereignty, especially after the U.S. tightened export controls, revealing vulnerabilities in building domestic AI champions.
- AI Competition and Collaboration: The G7 meeting brings together top executives from leading AI companies like Anthropic, OpenAI, and Google to discuss AI competitiveness and reliance on China for critical minerals, reflecting Europe's strategic considerations in balancing cooperation and competition with U.S. tech giants.
- Policy Driving Local Industry: The French government is actively promoting tech sovereignty with plans to replace U.S. providers, as the Prime Minister stated, “France must have its own tools,” while the European Commission assesses the implications of U.S. export controls to ensure non-discriminatory practices towards partners.
- Cost and Risk Trade-offs: Despite billions in investment, European AI firms remain reliant on U.S. cloud infrastructure and AI models, with Capgemini's COO noting that boosting sovereignty could incur costs up to 40%, prompting companies to weigh risks against these expenses.
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Analyst Views on IBM
Wall Street analysts forecast IBM stock price to rise
16 Analyst Rating
11 Buy
4 Hold
1 Sell
Moderate Buy
Current: 262.350
Low
210.00
Averages
315.80
High
375.00
Current: 262.350
Low
210.00
Averages
315.80
High
375.00
About IBM
International Business Machines Corporation is a provider of global hybrid cloud and artificial intelligence (AI) and consulting expertise. The Company’s segments include Software, Consulting, Infrastructure and Financing. The Software segment includes hybrid cloud and AI platforms, which allow clients to realize their digital and AI transformations across the applications, data, and environments in which they operate. The Consulting segment focuses on integrating skills on strategy, experience, technology and operations by domain and industry. The Infrastructure segment is focused on the hybrid cloud infrastructure market, providing on-premises and cloud-based server and storage solutions. In addition, it offers a portfolio of life-cycle services for hybrid cloud infrastructure deployment. The Financing segment provides client and commercial financing, facilitating its clients’ acquisition of hardware, software and services. It helps clients in more than 175 countries.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Quantum Computing Threat: As quantum computing technology advances, experts predict that 'Q-Day' will enable hackers to rapidly decrypt existing public-key encryption tools, posing significant risks to sensitive information of consumers, businesses, and governments, prompting proactive measures from countries and companies to mitigate this threat.
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See More
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- Quantum Threat: The advancement of quantum computing is expected to enable the cracking of widely used public-key encryption standards in the coming years, an event termed 'Q-Day,' which poses a potential cybersecurity disaster for unprepared organizations.
- IBM's Strategic Investment: IBM plans to invest $150 billion over the next five years in mainframe and quantum computing technologies, with an additional $10 billion commitment, positioning itself as a leader in quantum computing as it becomes mainstream and aiding its business recovery.
- IonQ's Market Performance: IonQ boasts a market cap exceeding $20 billion, and despite generating only $64.7 million in revenue in Q1, it achieved a remarkable 755% year-over-year increase, raising its full-year guidance to between $260 million and $270 million, indicating strong potential in commercial quantum applications.
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- Technological Path Differences: IonQ's trapped-ion technology boasts a 99.99% 2-qubit gate fidelity, significantly outperforming Rigetti's 99.1%, giving IonQ an edge in accuracy and computational capacity, which could drive market share growth.
- Financial Performance Comparison: IonQ's Q1 revenue surged 755% year-over-year to nearly $65 million, while Rigetti's revenue was only $4.4 million, indicating a higher market interest in IonQ's products and reflecting its stronger competitive position.
- Investment Strategy Recommendation: Although IonQ currently shows superior performance, the quantum computing sector is still in its infancy, so investors should consider diversifying into multiple quantum computing stocks or ETFs to mitigate risk while capitalizing on future growth opportunities.
See More
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- Technology Comparison: IonQ's trapped-ion technology achieves a 99.99% 2-qubit gate fidelity, significantly surpassing Rigetti's 99.1%, which gives IonQ an edge in accuracy despite its slower computation speed.
- Revenue Growth: IonQ's revenue surged 755% year-over-year in Q1 2025 to nearly $65 million, indicating strong market interest in its products, while Rigetti's revenue was only $4.4 million in the same period, highlighting IonQ's superior market appeal.
- Market Outlook: With quantum computing expected to become commercially viable by 2030, investors need to position themselves early, and IonQ, as a leader, could see substantial returns as the technology matures over the coming years.
- Investment Strategy: While IonQ is viewed as the better investment option, the quantum computing sector is still developing, prompting investors to consider diversifying into multiple quantum stocks or ETFs to mitigate risks and capitalize on potential market opportunities.
See More
Analysis of Rigetti Computing's Stock Volatility
- Stock Pullback: Rigetti Computing's stock has fallen from an all-time high of $58 in October to around $21 currently, indicating a potential waning of market enthusiasm for quantum computing, prompting investors to carefully assess buying opportunities.
- Government Funding Support: The U.S. government announced it would provide Rigetti with up to $100 million in funding, which, despite potential strings attached, serves as a positive signal for the quantum computing industry and strengthens Rigetti's market position.
- Financial Performance: In Q1 2026, Rigetti's revenue tripled year-over-year to $4.4 million, although operating losses increased; however, the company maintains over $400 million in cash, ensuring its ability to continue development.
- Intense Market Competition: The quantum computing sector is highly competitive, with Rigetti facing challenges from companies like IonQ and D-Wave, as well as tech giants like Google and IBM; nevertheless, government backing and ample cash flow position it for future potential.
See More
U.S. Government to Invest $100 Million in Rigetti
- Government Backing: The U.S. government has signed a letter of intent to invest $100 million in Rigetti over the next three years, which is a positive development for the quantum computing industry, although it may come with several strings attached.
- Revenue Growth Potential: Rigetti's revenue tripled year-over-year in Q1 2026 to $4.4 million, driven by research deals and sales of experimental systems, despite significant operating losses still being a concern.
- Liquidity Advantage: The company boasts over $400 million in cash and equivalents on its balance sheet, providing a solid runway for continued development while seeking commercial applicability, indicating strong financial health.
- Intense Market Competition: Although Rigetti's stock has fallen over 4% in 2026, it has still risen nearly 85% over the past 12 months, facing competition from players like IonQ and D-Wave, with its long-term success hinging on the realization of commercial applications.
See More
