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Well, folks, you might be wondering why markets are pissed off and red today and what does that have to do with the Quantinium IPO Broadcom and everything that's going on in the market? Well, I'm going to break it down for you. Not only are we going to break down the Quantinium IPO, but I'm going to show you one of the sensitivities that is presently occurring in the market and why that relates to the Quantinium IPO and of course whether or not you should actually care to invest in the Quantinium IPO. Oh, but first understand the test the market is going through. The easiest way to understand what is going on is just to look at sort of the news wire feed for what it was like when Broadcom earnings came out.
So, let's zoom in on that. Broadcom Q2 adjusted EPS. Q2 semi-revenue beats. Q2 adjusted net revenue beat. Q3 revenue forecast beat. Q3 margin as expected. Q2 semiconductor revenue beat. Well, that all sounds good, right? What happened? Oh, I see. Q3 AI chip sales at 16 billion versus 17.2 billion. That repres represents a 7% miss not on the total revenue for the company, but just specifically a little portion AI chip revenue, which obviously we all already know this. This I shouldn't have to repeat this, but I'm going to say it anyway. Yes, at some point, just as we are certain the tax
man is going to come collect taxes from us, we can be certain that at some point Nvidia's revenue growth will rotate and start declining and the entire hardware sector will absolutely collapse upon the weight of itself and we will have a crap situation to deal with. Okay, that sounds really bearish, but honestly, there's not much bearish in the Broadcom report because they're forecasting growth in AI chip sales all the way through 2028. And they are creating custom chips and the timing and the delivery of their XPUs is a little messy. And so as a result, even though for the entire year where you have this explosive expectation for revenues and chip sales, it's not all going to land in that third quarter. And so you get a
7% miss here, which has really tanked the stock, but also a lot of stocks today. Why is this happening? Why is the market pooping bricks over such a small thing? In my opinion, it actually has nothing to do with AI hardware. It has everything to do with a liquidity test, which is exactly what relates to quantinium, my friends. This quantinium deal was expected to go public back in uh this company was formed in 2021 and in 2024 or five the company said hey we're going to try to go public between 26 and 27 assuming market conditions are correct. Then we had an 8week straightup rally starting the beginning of April which we called with the hardware rally.
We called this likely to be the most frustrating rally coming up. We've been talking about this daily in our course member live streams over at mekevin.com. You could join and be a member over there. Lifetime access. Use coupon code marll. But what you have to know is quantinium is a liquidity test. They picked right at the end of 8 weeks of straight up in markets to say, "Oh, let's go public right here." So is SpaceX. SpaceX is going public next Thursday. and Anthropic rushed to file their S1 confidentially with the SEC because they realized now's a great time to go raise capital. So is Google.
All of this is a liquidity test. We've got multiple private credit funds over the last 24 hours that have halted redemptions or limited redemptions. That is a liquidity test. How much capital is available to flow into securities? That is known as liquidity. the Anthropic IPO, the OpenAI and SpaceX IPOs, and Google upraising from $80 billion originally with Berkshire Hathaway as a $10 billion anchor upraising to 85 from 80 as the largest followon offering ever in the history of stocks. Google is also testing our liquidity. How much money y'all got to throw at stocks? That is what the suits want to find out. and the suits would love to give you nothing more than the hope that quantinium
ticker symbol Q NT is the next big thing. Now quantinium's interesting and to understand quantum you have to understand a little bit about quantum computing. All right quantum computing there are three different types of quantum computing. I'm going to quickly explain that to you. Uh, and then I'll go into some of the financials and some of the risk factors for Quantinium. Uh, I also just briefly want to mention this morning in case you wanted more details on like what's going on with Broadcom and why I say that they're still forecasting this incredible chip growth. We did a complete fundamental analysis this morning in the course member live streams. You can always join that by going to meekke.com. Use coupon code
marll. And you can actually see that the market is starting to recover already and we're only about 90 minutes into the market's trading day. I'll show you some lines really quickly. The first thing you want to watch is Marll, which I call the step sibling of Broadcom. Marll was down like 7% this morning and I'm a big fan of Marll. It literally just turned green. Recovered all of it because this Broadcom selloff is overdone. Now, in fairness, Broadcom gave up all of this pump that it had over the last week. So, it's actually really still in a great spot when you zoom out, but it is just sitting at the top of its fib retracements. Right?
The other thing that you want to watch for is the Q's are consistently holding that 735 line. Even when we briefly lose it, we come back and confirm it. This is a bullish signal. So, there is still bullishness in this market. I don't think we're quite ready for a top. We also did a fundamental analysis on Crowdstrike this morning and um it's pretty damn good. Uh although there's some valuation questions. Pretty damn good. And so if you want that sort of deep dive fundamental analysis, remember you can always join us at meet kevin.com. You use coupon code marlla and you're in. Now here's what you need to know regarding quantinium.
Okay, first there are three different types of quantum computing. Uh there is superconducting then there is suspended or trapped ion uh and then there is quantum annealing. All of that is pretty important. So let's go understand these three different categories and then you'll understand the who's who of quantum. All right. And then I'm also going to tell you like what actually matters. So real quantum computing would either be trapped ion which is what this company does. Both of these are considered gatebased quantum computing or superconducting.
Now in trapped quantum computing you use a levitating ion. You shoot layers lasers at it and then you give it either a zero or one basically. And since every cubit is identical this could be very the these cubits hold their states and they basically make it more functional for you to run computing problems. So, think about some element basically that's floating around in like a vat. I'm over exaggerating this. Okay, that gives you one quantinium in there bouncing around getting shot at with lasers. That's cool. That's what this company does. I'm going to show you how many of those bouncing around atoms you actually need to do something productive.
This does not scale very well. It's easier to do because you could do it at room temperature, but it's very difficult to have hundreds or thousands of these to actually do something functional. This is why Google and IBM use a different but more expensive strategy called superconducting. And this is where they require really freezing temperatures like close to absolute zero to maintain stability in quantum computing. And then there's quantum annealing which is made famous by D-wave. D-Wave is basically looking for an optimization problem to solve delivery routes and logistics, uh, finance tools, whatever. So, so when you think about these three buckets, I want you to think as of Quantinium as a research project that probably won't
scale very well. Think of Google and IBM as the really expensive version of that research project where if it works, it probably does scale very well. And then when you think of D-Wave, think about solving math problems. It's very different. Now, right now, Quantinium is kind of famous and sexy because they've hit three nines in stability for both single and two cubits. Basically, how much stability they have and for how long. That's sexy to quantum people. But this is what you actually need to accomplish to be useful.
One cubit of stability lets you do a coin flip test. Two cubits of stability lets you do two coin flip tests. You get four states, right? 0 and then of course the various uh you know conjugations of that. 20 cubits is like a normal laptop. Okay, so we're at this company playing games with coin flips on these quantum things. A normal laptop is basically the strength of 20 cubits. 50 to 100 right now at IBM and Google starts getting noisy. Once we get to 200 to 300, then we could actually simulate molecular bonds. So we can make simulations and then we could actually start seeing new technologies maybe in things like batteries and
fertilizers. And if we could get to a,000 to 4,000 stable cubits, not just physical cubits, stable cubits, then we can break cryptography, uh, encryption for, um, uh, you know, military communications, Bitcoin, whatever. Okay, we're like noisy at 50 to 100 at supercomputers and at this company, we're at like one to two to a few, and then things start getting noisy and we start losing that high fidelity. Now, this Quantanium company makes no money, which should be freaking obvious. This company has basically one customer and then there are a few governments. So, there's this Japanese company that makes up like 60 to 63% of their revenue and
then you've got some incremental government revenue. Now, in fairness, they are a controlled company with Honeywell. So, Honeywell controls the voting power here. They're a spin-off from Honeywell. Basically, they're trying to make the suits rich. And really what you're doing is you're paying salaries at this company for a quote global workforce of about 700 people. Dude, 700 people is a lot. They have 450 employees that hold PhDs or M's degrees. That's cute, but that's also really freaking expensive. So, you are funding a research liquidity pump. Uh, and if we actually go look at the balance sheet, they quickly injected a little bit of revenue through an upfront sales type lease. In my opinion,
this was basically a way for them to say, "See, we have some revenue. We're not totally useless." And then that way, you know, in the quarter, they were able to align or showcase at least some revenue. So, they showed $5.2 million of revenue. But it's basically a shell of a company in my opinion. It's a research idea. I mean, they are actually doing something, right? They have one or two cubits of stability. They've got the trapped ion strategy, which is also known as pulse trap. It's cool. They've got something that they're on to, but this is a science project is what this is. Their R&D expenses for the quarter. All those PhDs you got to pay for. $54 million with $13 million of
marketing and sales. Bro, what are you marketing and selling? Oh, wait. Your stock. Oh, sorry. Okay, that was mean. I shouldn't have done that. Obviously, they're losing money, $136 million, and they're Cayman Island registered. I mean, that might change. I don't know why it says Cayman, actually. I shouldn't assume, but anyway, they lose a bunch of money. They're a research project, and they're an idea. Now, what does this have to do with the broader market? It's liquidity.
People are looking at the market and saying, "People got cash." And if people got cash, well, damn, I want me some of that cash. Not only do I want me some of that cash, but I want to beat the crap out of the red of the market. Yeah. Now, honestly, the market was probably red this morning because I'm going on a vacation uh tonight and uh course members did have the upfront schedule of that. Another reason you want to be a member of the courses is, you know, you got uh Kevin's vacation schedule, which, you know, if you've been around here for a while, you know, that's kind of important. It tends to uh tends to give the market a little heart attack every time I leave. But anyway,
right now, I want you to know that in my opinion, as much as I'd love to be the first person to call a top on hardware and say it's all coming collapsing, the Broadcom selloff is overblown. Instead, what you have are massive liquidity squeezes, new IPOs, SpaceX next week, Anthropic soon after that, OpenAI. There'll be a bunch of other IPOs. A lot of it will be bull crap, but the goal is squeeze the money out of the market cuz the suits want to line their pockets. And that's what's going
