Quantum Computing Stocks RGTI, DWAV, and IONQ Are Soaring Again, But Is It Safe to Invest?

Skeptical comments from top tech CEOs like Nvidia (NVDA) boss Jensen Huang and Meta’s (META) Mark Zuckerberg have weighed heavily on quantum computing stocks, but Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and IonQ (IONQ) all got a much-needed shot in the arm Tuesday. While RGTI ended the session a staggering 47.9% higher, QBTS closed the day up 23.5%, and IONQ surged 5.9%.

That positive momentum looks set to continue today, as RGTI eyes a 16% premarket gain, QBTS is up 27% ahead of the bell, and IONQ is poised to open more than 11% higher. Notably, Nvidia said late Tuesday that its annual GTC event will feature the company’s first-ever Quantum Day, slated for March 20. 

Per Nvidia’s website, the event will feature “sessions exploring what’s possible and available now in quantum computing, and where quantum technologies are headed, hosted by Huang and representatives from across the quantum community” - including reps from Rigetti, D-Wave, and IonQ.

This announcement from Nvidia comes on the heels of some other positive news for quantum stocks on Tuesday, including a $1 billion initiative between IonQ and the State of Maryland to invest in quantum computing, and price-target hikes for RGTI and QBTS from B. Riley analyst Craig Ellis. This morning, meanwhile, D-Wave said it will partner with Carahsoft to help increase adoption of its quantum computing solutions in the public sector.

The recent price volatility in these top quantum computing stocks highlights both the risks and the opportunities in this emerging technology. One major risk, as noted by Nvidia’s Huang, is the nascent stage of the technology, which means that many companies may not yet have viable products or revenue streams, leading to high volatility and uncertainty. Additionally, the field is highly competitive, with rapid technological advancements that could render current innovations obsolete. 

On the upside, quantum computing has the potential to revolutionize industries by solving complex problems much faster than classical computers, which could lead to significant financial gains for successful companies. Furthermore, early investment in this sector could provide substantial returns if the technology achieves widespread adoption and commercial success.

Given that, investors should proceed with caution before investing, particularly in the smaller, pure-play quantum computing stocks. Another alternative would be to consider larger, more diversified tech companies that are also investing in quantum computing technology, or a broad-based exchange-traded fund like the Defiance Quantum ETF (QTUM) to help mitigate some of the risks associated with trying to pick winners in this emerging space.