Quantum Computing Stocks Surge and Sway Investors in 2023

Investors in quantum computing stocks are experiencing significant volatility as they attempt to assess the value of these emerging companies. Firms such as Rigetti Computing, IonQ, D-Wave Quantum, and Quantum Computing Inc are competing to transform quantum theory into practical machines capable of solving complex problems beyond the reach of current technology. This shift could impact various fields, including cryptography and drug discovery.

The excitement surrounding these companies has resulted in dramatic price increases, with some stocks surging by over 100 percent this year. “Suddenly, it feels like science fiction has transitioned into real technological possibility,” noted Sylvia Jablonski, chief investment officer of Defiance ETFs, which manages the Defiance Quantum Fund.

Investor enthusiasm has led to Rigetti’s share price skyrocketing from $1.06 per share to a recent peak of $58. As of late October 2023, it ranked as the fourth most actively traded stock among clients at Interactive Brokers, with higher trading volumes than giants like Apple and Amazon. Currently, Rigetti shares stand around $38, representing a staggering valuation of more than 1,000 times the company’s revenue—a stark contrast to Nvidia’s price-to-sales ratio of about 50 times.

Despite the soaring stock prices, Rigetti has not yet turned a profit, according to its financial statements. It reported a profit in the first quarter of 2025 primarily due to changes in the value of securities it held. Christopher Poch, CEO of Promethium Advisors, remarked that the current valuation of these stocks resembles a “magic act.” He highlighted the incongruity of a company valued at $13 billion with only $22 million in projected revenues.

The LSEG earnings consensus indicates that Rigetti is expected to generate $21.9 million in revenues by 2026. While several companies are involved in quantum computing, including IBM and Alphabet, traders have notably focused on four key players—dubbed the “Quantum 4,” according to Art Hogan, chief market strategist at B. Riley Wealth.

Comments from the companies in question were not available, as representatives from Rigetti, IonQ, and Quantum Computing did not respond to inquiries, and a spokesperson for D-Wave declined to comment on their stock performance or outlook.

Analysts remain divided on the future of quantum computing stocks. David Williams, an analyst at Benchmark Equity Research, continues to rate Rigetti as a “buy,” raising his target price from $20 to $50 per share. Yet, he acknowledged the valuation of quantum stocks as more of “an art than a science.”

On October 30, B. Riley analyst Craig Ellis downgraded Rigetti to “Neutral,” citing concerns regarding its premium valuation and the potential impact of U.S. government shutdowns on revenue. Nevertheless, he raised his target price from $35 to $42 per share. On that day, Rigetti shares traded at $36.43, reflecting a decline of nearly 7 percent.

Interest from financial institutions is also growing. Recently, JPMorgan Chase announced plans to invest up to $10 billion in sectors deemed strategically important, including quantum computing. Additionally, IBM and HSBC revealed they had developed a new algorithmic bond trading platform utilizing quantum technologies, further fueling investor enthusiasm. Reports have also emerged suggesting that the U.S. government might inject additional funding into quantum computing in exchange for equity stakes. However, a U.S. Department of Commerce official stated that the department is “not currently negotiating” such arrangements.

While quantum computing stocks have seen remarkable gains, the technology is still in its early stages. A report from McKinsey projects the total market value could exceed $100 billion, yet industry experts remain cautious. “It’s the holy grail of computing; the use case is undeniable and incredibly exciting,” stated Rick Bradt, a portfolio manager at Neuberger Berman, who specializes in disruptive technologies. “However, uncertainty about the timing of widespread adoption remains a significant concern.”