Investing

Rigetti (RGTI), D-Wave Quantum (QBTS), and IonQ Are Down—But Are They Out?

Chris MacDonald

Published: January 31, 2025 12:13 pm

Quantum computing stocks have exhibited extreme volatility in recent weeks. As most investors are already aware, comments from Nvidia (NASDAQ:NVDA) CEO Jensen Huang drove this sharp decline in most quantum computing stocks earlier in January. 

Now, Huang’s view that quantum computing is a technology that may be decades away from becoming meaningfully viable for the overall economy is one that’s being hotly debated right now. And the key question many investors have moving forward is whether it’s possible quantum computing companies can generate meaningful revenues (and cash flows) in the years to come.

As is the case with many early-stage technologies, investing too early during bubble-like conditions can be dangerous. But if these companies can make meaningful headway and accelerate their timeline to commercialization, it’s possible these three quantum computing stocks could be oversold right now.

Key Points About This Article:

• This month’s incredible decline in top quantum computing stocks has many investors wondering whether the party is over for this segment.
• For those who believe a rebound could be brewing, here are three top names in this sector that are worth considering.
• If you’re looking for some stocks with huge potential, make sure to grab a free copy of our brand-new “The Next NVIDIA” report. It features a software stock we’re confident has 10X potential.

Rigetti Computing (RGTI)

Rigetti Computing (NASDAQ:RGTI) has emerged as a key player in the quantum computing sector. That’s in large part due to the company’s status as a leader in developing advanced processors with diverse applications across a broad range of industries.

By partnering with leading organizations, Rigetti integrates quantum solutions into real-world research, enhancing its market presence. The company’s technology promises breakthrough potential in areas like cybersecurity and pharmaceuticals, offering efficient, sustainable computing alternatives.

In 2024, the company experienced significant financial challenges despite its innovative position in quantum computing. For the third quarter, Rigetti reported total revenues of $2.4 million, a decline from $3.1 million in the same quarter of the previous year. This marked a 22.58% decrease compared to both the prior quarter and the previous year, and was another reason why many investors saw fit to sell this stock heavily amid other Nvidia-related headwinds. 

Rigetti is currently down more than 40% from its recent 52-week high, meaning this is among the more volatile names in this space. But long-term investors continue to focus on the company’s potential via its ongoing innovation and partnership growth.

D-Wave Quantum (QBTS)

D-Wave Quantum (NYSE:QBTS) is another top quantum computing company that has gone a different direction with its core focus. The company employs quantum annealing, optimizing problems by finding energy-efficient solutions through probabilistic models. This approach suits logistics and financial modeling, offering efficiency with reduced susceptibility to errors. Unlike gate-based chips, annealing chips handle specific tasks with fewer errors, making them ideal for industries requiring near-optimal solutions. 

Investing in D-Wave or any quantum computing stock is a long-term bet on future technology. Despite intense competition, D-Wave has carved a niche with paying customers and expects a 120% increase in bookings for 2024. The company’s $175 million stock sale in December bolstered its cash position, allowing for increased spending on R&D and sales. 

Though still unprofitable, analysts project revenue growth and reduced losses by 2026, with potential stock gains of up to 45% in 2025. With dozens of clients across various sectors, D-Wave is well-positioned to advance its technology and maintain leadership in this specialized quantum computing niche.

IonQ (IONQ)

IonQ (NYSE:IONQ) is among the top quantum computing companies that’s leading the charge toward an innovation-driven future. Using its unique trapped-ion technology, IonQ offers computational power surpassing traditional supercomputers. The company aims to revolutionize sectors like pharmaceuticals, logistics, and finance through advancements in drug discovery, optimized routing, and enhanced financial modeling.

IonQ stands out by using trapped ions to create quantum processors, offering over 100 qubits with fewer errors than competitors. While practical applications remain a challenge for quantum computing, IonQ has gained customers like Hyundai, Caterpillar, and the U.S. military. It’s these partnerships that have cemented the company’s status as a top player in this space, and is a key reason why I think investors have honed in on this top name in recent years.

Of course, IONQ stock has been beaten up during this recent sector-wide decline, dropping roughly 30% from its recent 52-week high. But if this pure-play quantum computing company can continue to garner attention as a unique investment opportunity via its current partnerships and applications across various key verticals such as cryptography and materials discovery, there’s a lot to like about this company’s upside relative to its current valuation.