:max_bytes(150000):strip_icc()/GettyImages-2243507324-41877cbae6d74d6eb6e725475a98f234.jpg "Are Quantum Computing Stocks Due for a Rebound? This Wall Street Bull Thinks So")
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Key Takeaways
- Quantum computing stocks have taken a hit recently as worries about an AI bubble pressure the tech sector.
- Downbeat sentiment around the sector could continue in the near term, but may change as the technology becomes more widely adopted, according to one Wall Street bull.
Could quantum computing stocks be due for a rebound?
Shares of quantum computing favorites Rigetti Computing (RGTI) lost about 6% Wednesday, while D-Wave Quantum (QBTS) slid 7%, IonQ (IONQ) fell 8%, and Quantum Computing (QUBT) dropped 9%, extending a pullback in recent weeks amid worries about an AI bubble. But one Wall Street bull expects that to change—eventually.
Analysts at Wedbush initiatied coverage of all four stocks with “outperform” ratings on Wednesday despite expectations they could remain pressured in the near term, viewing quantum computing as a “transformational” technology able to supercharge advances in AI, with potential for significant growth in the years to come.
“We expect that by the end of the decade, quantum computing companies will represent a larger share of the total spend on compute from what is a very small base today,” the analysts said, highlighting Rigetti, IonQ, D-Wave, and Quantum Computing as the only publicly listed pure-play companies in the U.S.
Why This Is Significant
Quantum computing stocks have been among the biggest beneficiaries of the AI boom this year, amid expectations that growing demand for AI will raise computing needs.
The Wedbush analysts issued a $60 target for IonQ, suggesting nearly 30% upside from Wednesday’s close, while their $12 target for Quantum Computing would point to a 16% gain. Their $35 targets for Rigetti and D-Wave would suggest they see the stocks adding roughly half their value in the next 12 months.
Though well below their October highs, D-Wave shaves have still nearly tripled in value this year so far, while Rigetti has climbed close to 50%, and IonQ has added 10%. Quantum Computing is the only stock among the four in the red for the 2025, with shares down close to 40% over the period.
