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Quantum computing stocks just got hit with another setback. On Jan. 10, Meta Platforms (META) CEO Mark Zuckerberg cast doubt on the technology’s near-term potential, echoing recent skepticism from Nvidia (NVDA) chief Jensen Huang and driving share prices lower.
During an appearance on Joe Rogan’s podcast, Zuckerberg expressed reservations about quantum computing’s practical applications, triggering a selloff in several quantum computing stocks.
IonQ (IONQ), Rigetti Computing (RGTI), and D-Wave Quantum (QBTS) all tumbled by double-digits, extending the losses following Huang’s earlier prediction that the technology might not be “very useful” for another 15 to 30 years.
The assessment from two of tech’s most influential leaders raises questions for investors who bid up quantum computing stocks dramatically through 2024 hoping the technology could follow artificial intelligence’s meteoric rise.
Quantum Computing Stocks: A Pullback in Valuation
Companies like Rigetti, D-Wave Quantum, and IonQ saw their share prices soar significantly in the 12 months before the recent selloff. This optimism was driven by speculation that quantum technology could enhance AI capabilities as well as the excitement over Google’s (GOOGL) Willow chip announcement.
Quantum computing is a long-term play as it can revolutionize multiple segments, such as pharmaceutical research, weather prediction, and encryption. Alternatively, the fundamentals of quantum computing companies have raised concerns. With combined revenues under $100 million, quantum computing stocks remain unprofitable while competing with Big Tech giants like Google.
These factors raise questions about whether the stocks can succeed in commercializing the groundbreaking technology by the end of 2030. So, let’s see if you should buy quantum computing stocks such as QBTS, IONQ, and RGTI right now.
D-Wave Quantum
Valued at a market capitalization of $1.6 billion, D-Wave Quantum develops quantum computing systems and services. Its products include the fifth-generation Advantage quantum computer and the cloud-based Leap platform. D-Wave provides development tools, professional services, and quantum solutions focused on AI, materials science, drug discovery, and financial applications.
Products like Ocean SDK and D-Wave Launch help enterprises integrate quantum computing into their operations. Based in Burnaby, Canada, D-Wave serves industries that include manufacturing, logistics, financial services, and life sciences.
Wall Street expects QBTS sales to rise to $14.8 million in 2025, up from a projected $8.76 million in 2024. Of the seven analysts covering QBTS stock, six recommend “Strong Buy,” and one recommends “Moderate Buy.” The average target price for QBTS stock is $5.82, slightly below its current trading price as of Jan. 16.
Rigetti Computing
Valued at a market cap of $2.1 billion, Rigetti Computing builds quantum computers and superconducting processors, offering cloud access to quantum systems through an integrated platform.
Analysts expect Rigetti Computing to post revenue of $15.6 million in 2025, up from a projected $11 million in 2024. With a cash balance of $92.6 million, the company has enough liquidity to support its cash burn rates over the next two years.
Out of the five analysts covering RGTI stock, four recommend “Strong Buy” and one recommends “Moderate Buy.” The average target price for RGTI stock is $6.10, lower than the current trading price.
IonQ
Valued at a market cap of $8.5 billion, IonQ develops quantum computing systems. It provides access to 20-qubit quantum computers through major cloud platforms, including Amazon’s Bracket, Microsoft’s Azure Quantum, and Google Cloud. IonQ also offers quantum computing services through its own cloud platform.
In the last 12 months, IonQ reported sales of $37.5 million, up from $22 million in 2023. According to estimates, the top line is projected to expand to $83.45 million in 2025. With over $350 million in cash, IONQ is well capitalized.
Out of the five analysts covering IONQ stock, two recommend “Strong Buy,” one recommends “Moderate Buy,” and two recommend “Hold.” The average target price for IONQ stock is $30.40, lower than the current trading price near $39.
