Quantum Computing Stocks Surge Amid High Valuations

Quantum computing companies have seen significant stock price increases as the industry is expected to play a key role in the world's digital future. Valuations of some companies, such as Arqit Quantum, have risen due to their potential for exponential revenue growth. As the industry continues to develop, investors are looking for opportunities in this emerging market.

Quantum computing companies have experienced significant stock price increases in recent months, fueled by expectations of the industry's pivotal role in the world's digital future. Pure-play quantum firms such as IonQ, Rigetti, D-Wave, and Quantum Computing Inc. have seen substantial gains, with Rigetti's stock up by approximately 4,000% year-over-year and IonQ's shares rising by around 700%, according to a TS2 Tech analysis. By mid-October 2025, IonQ traded near its all-time high of ~$73–75, while Rigetti was around $47, D-Wave about $33, and Quantum Computing Inc. (QUBT) ~$24, all significantly above their 2024 prices.

These surges have been driven by weak fundamentals and high valuations. None of these companies are yet profitable, with annual revenues in the single-digit millions while market caps run into the tens of billions. Despite generating relatively little revenue, these stocks have risen nearly fourfold on average in a year.

Recent corporate catalysts have also contributed to the stock price increases. Rigetti, for instance, won substantial contracts, including a $5.7 million order from Novera and a $5.8 million U.S. Air Force quantum networking contract. IonQ made bold acquisitions, such as a $1.08 billion deal to buy Oxford Ionics and smaller buys of Vector Atomic, Lightsynq, and Capella. Quantum Computing Inc. (QUBT) surged after announcing a $750 million equity raise and unveiling a photonic quantum encryption prototype.

However, experts caution that these gains may be driven more by speculation than fundamentals. CNBC's Jim Cramer warned that Rigetti is "pure speculation" and that the current valuations outstrip fundamentals. Analysts project potential plunges, with Morgan Stanley's Joseph Moore seeing up to 60% drops for both IonQ and Rigetti if sentiment reverses. Despite these warnings, bulls tout the sector's long-term growth potential, while bears point to high P/S ratios and tiny sales.

The quantum wave shows no signs of cresting, with stocks like IonQ, Rigetti, and QUBT continuing to race higher on every piece of news. However, current share prices embed aggressive future growth that isn't yet realized. As one commentator put it, many investors are "buying a vision of the future." The coming months will test whether these parabolic runs are the start of a historic tech breakout or the peak of a frothy bubble.