Is it safe to buy quantum stocks like Rigetti, QSI, QBIT and IonQ?

March 17, 2025 01:17 AM PDT | By Invezz

Is it safe to buy quantum stocks like Rigetti, QSI, QBIT and IonQ? — Image source: Invezz

Quantum stocks rises ahead of NVIDIA GTC event

These quantum stocks surged on Friday as investors focused on the upcoming GTC Event by NVIDIA this week. The headline of this event will be a speech by Jensen Huang, the company’s CEO.

Analysts expect that the company will share the tech roadmap, highlighting the Blackwell Ultra GPU and the next-generation Vera Rubin superchip. Analysts expect that Huang will take the stage to talk about quantum computing, an industry he has criticized before for being too young. Huang believes that the industry has a 10-20 year timeline to become successful.

There are signs that NVIDIA is being left behind in the quantum computing industry as some of its top competitors have made major progress. In December, Google unveiled Willow, the state-of-the-art quantum chip that demonstrated error correction as it scaled up.

It also performed a computation in under 5 minutes that would take a supercomputer 10 septilion years.

Microsoft has also made a lot of progress in the quantum computing industry. It launched Majorana 1, a new quantum chip that it hopes will help to solve the toughest industrial-scale problems. Majorana will have over a million qubits on a single small chip. Other companies, like IBM and Amazon, are also working on their quantum computing work.

Therefore, NVIDIA will likely announce its work on quantum computing and what to expect in the longer term. Such a breakthrough would likely push quantum computing stocks higher.

Is it safe to buy IONQ, Rigetti, and D-Wave stocks?

Companies like IONQ, Rigetti Computing, and D-Wave are some of the top players in the quantum computing industry. They will likely remain in the spotlight ahead of the upcoming NVIDIA event.

The most likely scenario is where these stocks continue rising ahead of the event and then retreat as investors sell the news.

Quantum computing stocks face three key risks. First, the companies are facing the challenge of the broader industry as analysts expect it to have many years before becoming mainstream. Even Sundar Pichai, Google’s CEO, believes that the industry is a decade away.

Second, these stocks are still grossly overvalued compared to their revenues and net income. IonQ has a market cap of over $5.7 billion against its forecasted revenue of $85.2 million this year and $170 million in 2025.

Rigetti Computing has a market cap of $3.2 billion against expected annual revenues of $14 million and $33 million in 2025 and 2026.

D-Wave Quantum has a market cap of $2.71 billion, while its annual revenue will be $22.36 and $34 million. The same is true with other companies like QUBT and QSI, which are severely overvalued and are all making losses.

Third, there is a situation known as buy the rumor, sell the news. This is a situation where stocks rise ahead of a major event and then sell when it happens. As such, the stocks may keep rising ahead of the NVIDIA event and then drop when it happens.

The post Is it safe to buy quantum stocks like Rigetti, QSI, QBIT and IonQ? appeared first on Invezz

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