A bombshell for D-Wave and Siemens Energy! Is AI stock NetraMark too cheap?

NetraMark Holdings: Too cheap?

Could NetraMark benefit from Donald Trump's plans to significantly reduce drug prices in the US? That seems likely. Pharmaceutical and biotech companies will have to reduce drug development costs dramatically, and that is exactly where NetraMark's software comes in. NetraMark has developed artificial intelligence to improve the design of clinical trials. The aim is to reduce the duration and risk of failure of clinical trials, thereby saving costs.

For context: Developing prescription drugs typically costs between USD 2 billion and USD 3 billion. Clinical trials account for 60% to 70% of this cost.

Nevertheless, AI companies tend to avoid this area because clinical trials usually involve several hundred patients. This means that the amount of data is insufficient for many AI and ML models.

NetraMark has solved this problem: Using a novel topology-based algorithm, patient data sets can be broken down into subsets of individuals who are closely related to each other based on multiple variables. This makes it possible to classify diseases into different types, even with much smaller data sets, to classify patients according to their sensitivity to drugs, and, of course, to evaluate the effectiveness of treatment.

This year, NetraMark is set to achieve its breakthrough through a strategic partnership with Worldwide Clinical Trials (Worldwide). The contract research organization conducts clinical trials worldwide for pharmaceutical and biotech companies. Worldwide offers its customers the NetraAI platform within the partnership to optimize their studies. The benefits for customers are obvious: fewer patients required per study, shorter timeframes, lower costs, and ultimately higher success rates.

At around CAD 100 million, NetraMark appears to be anything but highly valued. If initial successes from the cooperation with Worldwide are reported in the coming months, the share price should rise significantly. A complete takeover also appears far from unlikely.

**For an update on current developments and to get an impression of the management team, investors should register for the upcoming IIF virtual investor conference, taking place on May 21, 2025, when NetraMark CEO George Achilleos us06web.zoom.us/webinar/register/WN_jecx57q2TyGIR5x4Duwlxg will be presenting. German companies such as Cenit and Deutsche Rohstoff will also be presenting at the event.

D-Wave Quantum: Will the all-time high fall?

Quantum hot stock D-Wave is back at an all-time high. In just a few days, the share price rose by over 60% and is now trading at around EUR 11 again. The reasons: In the first quarter of 2025, D-Wave Quantum generated revenue of USD 15 million, representing an increase of 509% over the same quarter last year. This increase is mainly attributable to a customer in Germany. An Advantage quantum computer system was delivered to the Jülich Supercomputing Centre for USD 12.2 million. At the same time, the Company significantly reduced its net loss to USD 5.4 million, following a loss of USD 17.3 million in the previous year. CEO Alan Baratz described the quarter as perhaps the most significant in D-Wave's history. The new revenue structure with a third pillar in hardware sales – alongside cloud services and consulting – strengthens the foundation for further growth.

Several analysts responded positively to the developments at D-Wave: Needham raised its price target from USD 8.50 to USD 13 and praised the growing commercial momentum, particularly in the area of practical solutions such as energy optimization for blockchain applications. The new Advantage2 system and strategic partnerships in the quantum blockchain sector further strengthen the long-term outlook.

And then there was also an update on the cooperation with auto giant Ford. Ford joint venture Ford Otosan is using a hybrid quantum solution to optimize production planning for the Ford Transit. The challenge was the large number of 1,500 variants, each requiring individual planning. With the help of D-Wave's technology, the planning time for the 1,500 variants was reduced from 30 minutes to less than 5 minutes.

This demonstrates that quantum computing is not a pipe dream, but already offers added value today. However, investors must take into account that D-Wave shares are valued at more than USD 3 billion.

Siemens Energy: Time to sell the stock?

Siemens Energy is now worth EUR 60 billion on the stock market. But of course, its revenue and earnings are also quite different. While the business models of NetraMark and D-Wave require a lot of energy, the German industrial giant supplies the equipment for energy production and transport.

The Q2 figures and the blackout in Spain have given Siemens Energy's stock new momentum. As a result, the share price has shot up from around EUR 40 to EUR 75 since the beginning of April. Analysts are divided on how far it can go. Deutsche Bank confirmed its "Buy" recommendation last week and raised its price target from EUR 74 to EUR 82. Analysts see the chance that Siemens Energy could soon surprise with its revenue and profits. In contrast, mwb advises selling Siemens Energy shares.

Analysts praise the Company's operational development. The order backlog and book-to-bill ratio point to further growth. However, analysts believe that the current share price is simply too high. mwb currently estimates the fair value of the share at EUR 52 (Link to the study here)

NetraMark is facing exciting months ahead. If the cooperation with Worldwide bears fruit, the share is far too cheap. It is clear that costs must be reduced in drug development. This offers NetraMark billion-dollar potential. The potential of quantum computing is also huge. How quickly money can be made with it is not yet certain. But D-Wave shows that it can happen faster than some might think. However, the valuation is ambitious. This also applies to Siemens Energy shares. But the momentum speaks in favor of the stock.