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Quantum Computing Stocks Rally On Wall Street Prompting Valuation Deba

Bonisiwe Shabane
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quantum computing stocks rally on wall street prompting valuation deba

Market activity on Wall Street has intensified as pure-play quantum computing shares climbed sharply, drawing attention from both retail and institutional investors. Companies such as Rigetti, IonQ, D-Wave, and Quantum Computing Inc. are vying to convert quantum theory into practical systems that can tackle problems beyond the reach of conventional computers. The surge has produced outsized returns this year, with some stocks jumping more than 100% and prompting comparisons to a tech rush. Rigetti, for example, climbed from $1.06 a share to an intraday high near $58 before settling around $38—despite only modest revenue and persistent unprofitability. By contrast, established firms like Nvidia trade at roughly 50 times sales, highlighting the sector's elevated valuations.

Quantum computing could reshape multiple industries, from undermining current cryptography to shortening drug development timelines. Large financial and technology players are already positioning themselves: JPMorgan Chase has set aside up to $10 billion for strategic investments, while IBM, working with HSBC, is exploring quantum approaches for algorithmic bond trading. Yet the excitement sits alongside a reality check. Analysts note that optimism often outpaces fundamentals. Rigetti, for instance, projects just $21.9 million in revenue for 2026 while carrying a market capitalization near $13 billion—a disparity that has analysts and investors questioning current price levels. The so-called “Quantum 4” names have become highly traded, with Rigetti briefly surpassing established tech giants such as Apple and Amazon in trading volume.

Observers say assigning fair value to these companies is ‘‘more art than science,’’ given the uncertainty around the timeline for commercial viability. Pure-play quantum computing stocks got Wall Street's attention in 2025 as JPMorgan, Jefferies, Evercore ISI, Cantor Fitzgerald and Mizuho Securities initiated coverage on some companies while Barclays and Bank of America published in-depth reports... Heading into 2026, IonQ (IONQ) and D-Wave Quantum (QBTS) hold the most buy ratings along with the highest price targets on average… 9:00 AM ET The stock market fell to end a solid 2025. Palantir and Nvidia chipmaker Taiwan Semi were in focus. Tesla deliveries...

9:00 AM ET The stock market fell to end a solid 2025. Palantir... Get instant access to exclusive stock lists, expert market analysis and powerful tools with 2 months of IBD Digital for only $20! Get market updates, educational videos, webinars, and stock analysis. Kent Nishimura / Bloomberg / Getty Images Could quantum computing stocks be due for a rebound?

Shares of quantum computing favorites Rigetti Computing (RGTI) lost about 6% Wednesday, while D-Wave Quantum (QBTS) slid 7%, IonQ (IONQ) fell 8%, and Quantum Computing (QUBT) dropped 9%, extending a pullback in recent weeks... But one Wall Street bull expects that to change—eventually. Analysts at Wedbush initiatied coverage of all four stocks with "outperform" ratings on Wednesday despite expectations they could remain pressured in the near term, viewing quantum computing as a "transformational" technology able to supercharge... "We expect that by the end of the decade, quantum computing companies will represent a larger share of the total spend on compute from what is a very small base today," the analysts said,... Quantum computing, heralded as the next frontier in computational power, promises to revolutionize industries from pharmaceuticals to cryptography with its ability to process complex calculations far beyond classical computers. Companies like IonQ (NYSE:IONQ), Rigetti Computing (NASDAQ:RGTI), D-Wave Quantum (NYSE:QBTS), and Quantum Computing (NASDAQ:QUBT) have captured investor enthusiasm, driving their stock prices to dizzying heights.

Over the past year, these stocks have surged, with gains ranging from 420% for IONQ to over 2,566% for QUB T, fueled by optimism about quantum’s potential. However, all of these stocks are tumbling today, down 4% to 7% in noontime trading, reflecting a broad-based decline. This sharp drop raises a critical question: after such a tremendous run-up, is the quantum computing bubble finally bursting? The quantum computing sector has seen remarkable technological strides, exploding the market valuations of the individual players. IonQ’s trapped-ion systems surpassed 100 qubits, bolstered by a $1 billion investment in Oxford Ionics to scale to 2 million qubits by 2030, with Q1 2025 revenue at $7.6 million. Rigetti’s 84-qubit Ankaa-3 system hit 99.5% gate fidelity, supported by a $100 million Quanta Computer partnership, though its revenue fell to $1.47 million in the first quarter.

D-Wave, focusing on quantum annealing, reported $15 million in Q1 revenue, up 500%, with clients like Accenture (NYSE:ACN), but it also plans a $400 million stock issuance. Written by Adam Levy for The Motley Fool-> In early December, Alphabet's Google announced a breakthrough in quantum computing that has the potential to push the entire industry forward. Its Willow quantum chip can reduce errors exponentially as it adds more qubits (the fundamental building blocks of quantum computing chips). Error correction at scale is a challenge the industry has faced since the first quantum error correction function was introduced in 1995. Willow's breakthrough allowed it to solve a benchmark computation in 5 minutes that would take today's best classic supercomputer an estimated 10 septillion years to complete.

The task is tailor-made for quantum computers and only useful for performance measurements, but that's still a big acceleration. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. See the 10 stocks » The technology introduced by Willow also opens the door for quantum computing companies to advance their own development and speed up their timeline for commercial viability.

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