Quantum Computing Stocks Send Speculators on a Wild Ride as Hype Outpaces Reality
Quantum computing stocks have become Wall Street’s latest obsession — and one of its most unpredictable playgrounds. Companies such as Rigetti Computing, IonQ, D-Wave Quantum, and Quantum Computing Inc. have seen their share prices surge by 100% or more this year as investors chase what some call “the next great technological revolution.”
These firms are racing to commercialize quantum computers — machines that exploit the principles of quantum mechanics to solve problems far beyond the reach of today’s fastest supercomputers. The potential applications range from cryptography and logistics to drug discovery and financial modeling.
“It feels like science fiction has suddenly become a near-term reality,” said Sylvia Jablonski, CIO of Defiance ETFs, which runs the Defiance Quantum fund. Yet, analysts warn that enthusiasm may be running far ahead of fundamentals. Rigetti shares, for instance, have skyrocketed from just over $1 to as high as $58 this year, trading at more than 1,000 times the company’s sales.
“It’s a magic act,” said Christopher Poch of Promethium Advisors. “How else do you explain a company with a $13 billion valuation but only $22 million in forecast revenue?”
Despite the eye-popping numbers, most quantum firms remain unprofitable. Some, like Rigetti, have posted paper profits from changes in the value of securities, not from operations. Analysts say valuations in the “Quantum 4” — Rigetti, IonQ, D-Wave, and Quantum Computing Inc. — are now more art than science.
Still, optimism remains high. Major financial players such as JPMorgan Chase and HSBC have begun investing in quantum-based systems, and McKinsey projects the global quantum market could exceed $100 billion. But as Neuberger Berman’s Rick Bradt cautioned, “The promise is undeniable — but the timing remains deeply uncertain.”