Quantum Computing Stocks: Time to Be Fearful Amid Dual Rise of AI and Quantum Computing

Investors are optimistic about the potential of quantum computing to revolutionize industries such as drug development and cybersecurity. The four pure-play quantum computing stocks - IonQ, Rigetti, D-Wave Quantum, and Quantum Computing - have rallied between 700% and 5,130% over the trailing year. However, the time to be fearful when others are greedy has arrived for these stocks, with lofty estimates suggesting the potential for significant economic value creation.

Investors have been captivated by the potential of quantum computing to revolutionize industries such as drug development and cybersecurity. The four pure-play quantum computing stocks—Quantum Computing Inc. (QUBT), IonQ, Rigetti, and D-Wave Quantum—have experienced remarkable growth over the trailing year, with QUBT leading the pack with a 2,500% year-on-year increase in share price Quantum Computing Inc (QUBT) Skyrockets 2,500%: $750 M Windfall, Quantum Breakthroughs & Bubble Fears^[1]. However, the current market enthusiasm for these stocks has raised concerns about the sustainability of their valuations.

QUBT, in particular, has been the poster child of the quantum tech stock rally. Its share price skyrocketed from penny-stock levels to highs above $25, a testament to the hype surrounding quantum computing . The company recently unveiled a significant technological milestone—a room-temperature quantum encryption network using time-energy entangled photons, which showcased at the ECOC 2025 fiber-optics conference . Early trials of this technology have been promising, with QUBT securing a NASA subcontract and a NIST quantum chip contract, as well as a $332,000 sale to a top-5 bank for a quantum-secure cybersecurity testbed .

Despite these advancements, QUBT’s stock has been highly volatile. On October 2, 2025, it plunged ~11% after the company announced a massive $750 million private placement of its stock, followed by a quick rebound the next day amidst a broader sector rally . The company’s stock has been driven by momentum and the allure of the quantum computing narrative rather than fundamentals . Analysts have been divided in their opinions, with some bullish analysts upgrading the stock to $40, while others remain cautious about the company’s ability to live up to expectations .

The recent $750 million fundraising round has significantly bolstered QUBT’s balance sheet, giving it the strongest cash position among publicly traded quantum companies . The company now has over $1.5 billion in cash on hand, which will allow it to pursue aggressive growth initiatives such as accelerating commercialization, expanding manufacturing capacity, and acquiring strategic assets . However, the massive share issuance has also raised concerns about dilution, with some investors reacting nervously to the news .

The other pure-play quantum computing stocks have also experienced significant growth. IonQ, for instance, has rallied by over 1,100% over the trailing year, while Rigetti has seen a 700% increase . D-Wave Quantum, however, has been the most volatile, with a 5,130% year-on-year increase in share price . These stocks have benefited from the broader hype around quantum computing, but their valuations remain highly speculative, with many investors questioning whether the fundamentals can catch up to the hype.

In conclusion, while the potential of quantum computing is undeniable, investors should exercise caution when evaluating these stocks. The extreme valuations and high volatility suggest that the time to be fearful when others are greedy has arrived. It is essential to remain informed about the latest developments and maintain a balanced perspective when investing in these high-risk, high-reward opportunities.