Are We In A Quantum Computing Bubble Mitrade Com

Quantum computing stocks have been on a tear this year, despite the technology's nascent scale and still speculative nature. Unlike the broader artificial intelligence (AI) theme, many popular quantum computing stocks are small companies with limited traction. While it can be tempting to follow the momentum, several quantum computing stocks boast valuation multiples that echo those seen during prior stock market bubbles. This year has been tough for investors, particularly those who flock toward growth stocks. Just about every major industry has been impacted in some form or fashion by President Donald Trump's new tariff policies. While the broader implications of these import taxes are still unfolding, one sector that has faced abnormally large headwinds is technology.

For the first time in nearly three years, investing in the artificial intelligence (AI) market hasn't necessarily resulted in outsized gains. Quantum computing is a $40B bubble driven by retail investors, passive institutional flows, and charlatans. While quantum computing is based on incredibly interesting underlying mathematics and physics, no significantly valuable use cases exist for the technology that could possibly justify the current market caps. The insiders at IonQ ($IONQ), D-Wave Quantum ($QBTS), Rigetti Computing ($RGTI), and Quantum Computing Inc. ($QUBT) know they are peddling fools gold in a hyper-competitive market and have sold most of their shares while simultaneously claiming that they are “the next NVIDIA”. Furthermore, due to noise these systems must reserve a large proportion of the total physical qubits for error correcting, limiting the logical to physical qubit ratio to < 1:15.

All public quantum stocks are set for a massive downturn after retail realizes that a Hamiltonian isn’t a play and moves on to the next momentum stock. I predict IONQ 0.00%↑, QBTS 0.00%↑, RGTI 0.00%↑, and QUBT 0.00%↑ will fall in price by 80% within 1 year of this post. Public quantum computing companies consist of $IONQ, $RGTI, $QBTS, and $QUBT and have a collective market cap of $40B with collective revenues of $63M, a price to sales ratio of 635. Note that D-Wave ($QBTS) uses annealing and thus doesn’t support general purpose computing even though it’s often grouped into the same basket as general gate based quantum computing companies. Also Quantum Computing Inc. ($QUBT) is an obvious fraud as they were recently a beverage company (before the natural pivot to quantum computing).

Thanks for reading! Subscribe for free to receive new posts and support my work. Private quantum computing players include Quantinuum (raised $625M), Pasqal (raised $150M), Anyon Technologies, Infleqtion (raised $230M), QuEra Computing (raised $247M), and IQM Quantum Computers (raised $593M). Clearly this is a hyper-competitive industry. It is anyone’s guess which technical solutions will win out in the end. Subsidiaries of public companies involved with quantum include IBM and Google Quantum.

Google Quantum set off the quantum computing bubble back in December of 2024 with their Willow chip. This chip consisted of 105 physical qubit and was used to prove that their physical error could be made low enough that error codes could even work (i.e. “below threshold”). Note that in the same press release, they explain that they would still need 1000 physical qubits for 1 modestly error-corrected logical qubit, and they noted the engineering challenge in producing a chip like... Furthermore, the team also clearly states that their random circuit sampling benchmark problem is a toy problem with no real-world application. Daily stocks & crypto headlines, free to your inbox

By continuing, I agree to the Market Data Terms of Service and Privacy Statement Quantum computing has moved from research labs to surging stock valuations and massive investment flows, with some firms posting gains of hundreds of percentage points. While breakthroughs in hardware, funding, and interest from major tech players fuel optimism, many quantum firms still lack consistent commercial revenue and remain speculative. As the hype builds, 2026 could mark a moment of reckoning, where only firms with real technology and business models survive, and others risk dramatic corrections. Artificial Intelligence has dominated the technology landscape and reshaped industries. While AI continues to grow, investors and innovators are already searching for the next breakthrough.

All eyes are turning to the next big leap in computational power, which is quantum computing. This excitement has pushed quantum startups into the spotlight, with valuations soaring and market expectations rising even faster. It has shifted from a niche area to one of the most hyped and heavily funded domains in modern technology. The key question becomes: Will quantum computing deliver breakthroughs or a sharp market correction? The sheer pace of quantum activity from tech firms in 2025 would have been unthinkable even five years ago, says Catherine Thorbecke for Bloomberg Opinion. People work at a cleanroom that manufactures 300mm silicon wafers containing quantum computing chips at the Albany NanoTech Complex in Albany, New York, US, in this handout image released on Nov 10, 2025.

IBM/Handout via REUTERS TOKYO: Step aside, artificial intelligence. Another transformative technology with the potential to reshape industries and reorder geopolitical power is finally moving out of the lab: quantum. The United Nations dubbed 2025 the International Year of Quantum Science and Technology. It’s been marked by a flurry of announcements – and a mountain of hype – around a mind-boggling field of science long dismissed as perpetually a decade away from usefulness. But that’s how people talked about AI, too, before ChatGPT spurred the current global arms race and investor euphoria.

Quantum technology taps the odd mechanics of quantum physics – how particles behave at the atomic level – to create computers, sensors and communications gear that are exponentially more powerful than today’s. Classic computers process information in bits, which can be represented as “0” or “1”. Quantum computers use qubits, which – bear with me for a moment – can exist in a superposition of both states at the same time. That allows them to evaluate a vast number of possibilities at extraordinary speed. The recently released MIT Quantum Index Report 2025 explores the current state of quantum computing — including the technology’s opportunities and challenges. Though the United States has more quantum computing than anyone, when it comes to quantum communications, China leads.

Investments in quantum computing are roaring back after a one-year dip. And a survey finds that thinking about quantum cryptography makes one in four Americans nervous. These are among the many findings of the MIT Quantum Index Report 2025. Hot off the press, the nearly 120-page report offers a comprehensive, data-driven assessment of the current state of quantum computing. The report’s editorial team was led by Jonathan Ruane (pictured above)— a Research Scientist with the MIT Initiative on the Digital Economy (IDE) and a Lecturer at the MIT Sloan School — and includes... Ruane and company say we’re now in quantum computing’s second revolution.

The first revolution gave us the rules of the quantum world, then applied those rules to create groundbreaking technologies. By contrast, the second revolution is all about controlling and engineering quantum systems directly. That includes using qubits for computing and entangled photons for communications. The MIT report explores different quantum computing paths being pursued by global leaders. For example, it shows how China is focusing on using quantum computing for specific national priorities, including infrastructure. Indeed, China leads the world in both quantum communications — particularly satellite-based systems — and patents.

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