Quantum Computing Stocks: Growth and Risks Ahead

Quantum computing stocks like IonQ and Rigetti have seen significant price rises recently but remain unprofitable. Investors are advised to consider larger companies like Alphabet and Nvidia for more stability in the market.

Date: 15-03-2025

AI Rating: 5

Investor Perspective on Quantum Computing Stocks

The report discusses the significant price increases observed in quantum computing stocks, particularly IonQ and Rigetti, with gains of 100% and 1,093%, respectively, over the past six months. Despite these impressive figures, both companies are described as deeply unprofitable business operations with minimal revenue streams relying on funds from stock sales or loans.

Furthermore, while there has been an initial surge in interest due to developments like Alphabet's new quantum chip 'Willow,' the potential for commercial applications is still a long way off. Investors should be cautious, as the report notes, "What happens if the next quantum computing research project turns up a lump of coal instead of a gold mine?" This indication points to a significant level of uncertainty in the sector.

Notably, Alphabet, Nvidia, and Microsoft are suggested as more stable alternatives for investors seeking exposure to quantum technologies. These companies are not only more established but also possess significant resources to lead in quantum computing initiatives.

Nvidia's CEO's remarks regarding the long timeframe for meaningful quantum computing advancements impacted stock prices negatively; IonQ's shares fell by 39%, and Rigetti's stock dropped by 45% after these comments. This scenario underscores the volatile environment surrounding emerging technologies.

Given these dynamics, it would appear that while there is substantial potential in the quantum computing market, the present moment reflects a challenging landscape for investors focused on profitability and stability.

Stocks: IONQ RGTI GOOG GOOGL NVDA MSFT