Quantum computing stocks led by IonQ jumped on Monday continuing their roller coaster ride in 2025. Amid stock market volatility, investors watching artificial intelligence stocks and quantum plays should pay attention to a key metric on IBD MarketSurge – average true range.
Quantum computing stocks have been volatile amid announcements by tech industry giants Alphabet, Microsoft and Amazon.com. Chipmaker Nvidia's GTC conference also played a role in investor's shifting views on quantum stocks.
In 2025, shares in IonQ have retreated 37%. D-Wave Quantum is up nearly 4%. Shares of Rigetti Computing have tumbled 35%. And, Quantum Computing has dropped 47%.
Meanwhile, the average true range metric available on IBD's MarketSurge charting tool offers some guidance amid market volatility. It gauges the characteristic breadth of a stock's behavior.
Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
In the current, unpredictable market, IBD suggests stocks with 21-day ATRs of 3% or below.
Quantum Stocks: ATR Technical Ratings
As you might expect, the ATRs of quantum computing stocks are high. IonQ's 21-day ATR comes in best at 11.02%. Quantum Computing's ATR is 13.65%. Rigetti's ATR is 12.95% while D-Wave's ATR is 16.56%.
High-volume AI stocks Nvidia and Palantir Technologies perform better. The ATR of Nvidia stock is 5.70%. The ATR of Palantir stock is 8.16%.
Another comparison could be Google-parent Alphabet. The ATR of Google stock is an acceptable 3.05%. The impact of generative artificial intelligence on the internet search advertising business of Google stock remains top of mind for investors.
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, Quantum computing's ultimate benefit is that it aims to solve problems too complex for today's classical computers.
In early January, comments by Nvidia Chief Executive Jensen Huang pressured quantum computing stocks.
On Monday, shares in IonQ gained 17% while Quantum Computing rose 18% amid no apparent news. D-Wave Quantum advanced 4% while Rigetti climbed 8%.
If you're new to IBD, consider taking a look at its trading system, especially for bull and bear markets, the basics of technical analysis and recognizing base patterns. One great resource is Investor's Corner. Give thought to monitoring updates to IBD stock watchlists.
IBD offers a broad range of growth stock lists. Amid market volatility, here are some useful strategies. Meanwhile, IBD doesn't put much weight on P/E ratios and other valuation metrics. On the other hand, here are some time-tested trading rules.
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Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
