D-Wave Quantum's 15min chart shows Bollinger Bands Narrowing, KDJ Death Cross.

Friday, Aug 1, 2025 3:11 pm ET2min read

Based on the 15-minute chart for D-Wave Quantum, the Bollinger Bands have narrowed, indicating a decrease in the magnitude of stock price fluctuations. Moreover, the KDJ (KST Divergence Index) has triggered a death cross at 08/01/2025 15:00, which suggests a shift in the momentum of the stock price towards the downside and a potential for further decreases.

Title: Quantum Computing Stocks: WarrenAI Analysis Reveals Overvaluation Amidst High Growth

Quantum computing stocks have been a hot topic in the tech sector, delivering extraordinary returns over the past year. However, a recent analysis by WarrenAI using Investing.com Pro’s metrics raises concerns about a disconnect between performance and fundamentals. Despite eye-popping gains exceeding 1,000% annually, major quantum stocks currently trade significantly above their fair values while showing mediocre Proscores, suggesting potential overvaluation in the sector [1].

Major tech companies like IBM (NYSE:IBM), Microsoft (NASDAQ:MSFT), Google (NASDAQ:GOOGL), and NVIDIA (NASDAQ:NVDA) have made strides in quantum computing. However, it was NVIDIA CEO Jensen Huang’s comments that had an outsized impact on the sector. Initially dismissing the technology’s near-term relevance, he later reversed course, stating that quantum computing is nearing an “inflection point” and is getting close to solving real-world problems [1].

WarrenAI’s Top Picks

WarrenAI identifies D-Wave Quantum Inc. (QBTS) as the relative leader in the speculative quantum computing arena. With a Proscore of 2.05 out of 5, it has the highest rating among major quantum stocks. Analysts set a mean price target of $18.67, suggesting modest 11% upside potential. However, the stock currently trades 49% above its calculated fair value, indicating significant premium pricing despite its sector-leading metrics [1].

Quantum Computing Inc. (QUBT) ranks second with a Proscore of 1.83 and a staggering one-year return of 2,219%. Analysts project a mean target of $18.50, suggesting 26% upside. However, like its peers, QUBT trades substantially above its fair value estimate [1].

IonQ Inc. (IONQ) holds the third position with a Proscore of 1.79. The company enjoys the most analyst coverage with seven firms tracking the stock. Current pricing sits 28% above fair value, while analysts maintain a mean price target of $47.86, suggesting potential 23% upside from current levels [1].

Rigetti Computing Inc. (NASDAQ:RGTI) rounds out the group with the lowest Proscore at 1.76. The stock trades 48% above its fair value, similar to D-Wave. Analyst enthusiasm appears more tempered here, with price targets suggesting just 11% upside potential to the mean target of $15.83 [1].

Technical Indicators and Market Sentiment

Based on the 15-minute chart for D-Wave Quantum, the Bollinger Bands have narrowed, indicating a decrease in the magnitude of stock price fluctuations. Moreover, the KDJ (KST Divergence Index) has triggered a death cross at 08/01/2025 15:00, which suggests a shift in the momentum of the stock price towards the downside and a potential for further decreases.

Conclusion

The quantum computing sector presents a paradox for investors. While the technology holds immense potential, the current market prices may already reflect much of the anticipated future growth. None of these stocks achieves a Proscore above 2.1, which would typically indicate average investment quality on Investing.com Pro’s 1-5 scale. Investors should approach the sector with caution and selective investing.

References
[1] https://www.investing.com/news/stock-market-news/which-quantum-computing-stock-screens-best-according-to-warrenai-93CH-4166554

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