Quantum computing could be the next major technological gold rush. While artificial intelligence stole headlines last year, veteran hedge fund manager David Kass now predicts that quantum computing may soon overshadow AI in the race to transform business, science, and our everyday lives. Many investors are taking note—and for good reason. Below, we explore the top quantum computing names to watch in 2025, including each company’s strengths, challenges, and overall outlook.
Why Quantum Computing?
Quantum computing relies on qubits (quantum bits) instead of the traditional binary bits (0s and 1s) used by classical computers. A qubit can be in more than one state at the same time—a property known as “superposition”—enabling vastly more complex calculations at speeds far beyond current machines. This immense computational power could supercharge areas like artificial intelligence, pharmaceuticals, logistics, materials science, cryptography, and much more.
However, quantum computing is also unproven from a revenue standpoint. Most of the pure-play quantum computing companies remain speculative, unprofitable, and generate minimal revenue. Their stocks have seen extraordinary run-ups, making them prone to volatility. With that in mind, here’s a closer look at five notable players in the space, along with a unique ranking for 2025.
1. IonQ (IONQ)
Why It’s a Top Pick:
- Strong Partnerships: IonQ has high-profile collaborations with Amazon Web Services (AWS) and the U.S. Air Force Research Lab, among others.
- Robust Growth: The company reported $12.4 million in Q3 2024 revenue (up 102% year-over-year) and is projected to reach nearly $85 million in 2025—remarkable compared to other quantum pure plays.
- Scalable Tech: IonQ relies on trapped-ion technology, which many experts believe could be easier to scale due to lower error rates than some competing methods.
Key Considerations:
- Still in Early Stages: IonQ is unprofitable and quantum technology remains experimental.
- Elevated Valuation: Its market cap hovers around $10 billion, giving it a lofty price-to-sales ratio of over 200.
Bottom Line: IonQ’s strong partnerships, revenue growth, and relatively advanced hardware design give it a competitive edge among pure-play quantum players. While still speculative, its progress makes it an intriguing leader in this nascent field.
2. Alphabet (GOOGL)
Why It’s a Top Pick:
- Resource Powerhouse: As Google’s parent company, Alphabet has the deep pockets and R&D muscle to develop cutting-edge quantum technologies.
- Willow Breakthrough: Its latest quantum chip, Willow, demonstrated an ability to reduce errors as the system scales—one of quantum computing’s greatest obstacles.
- Diversification: Google’s enormous ecosystem (search, AI, cloud, and other ventures) helps buffer against quantum’s uncertain timelines.
Key Considerations:
- Not a Pure Play: Quantum computing is only a small slice of Alphabet’s broad tech empire.
- Long-Term Horizon: While Alphabet is investing heavily in quantum, major revenue impacts could be many years away.
Bottom Line: As a major global tech leader, Alphabet offers a “safer” route to quantum exposure. Its progress on Willow could eventually yield transformative results, and investors benefit from Alphabet’s core businesses in the meantime.
3. D-Wave Quantum Systems (QBTS)
Why It’s on the Radar:
- Significant 2024 Rally: Its shares skyrocketed over 1,000% this year and have garnered bullish analyst sentiment.
- QCaaS Model: D-Wave focuses on Quantum Computing as a Service, reporting a 41% year-over-year revenue growth for Q3 2024.
- Wall Street Backing: Benchmark raised its price target from $3 to $8, and multiple firms maintain a Buy rating.
Key Considerations:
- Ongoing Losses: D-Wave has yet to turn a profit; it posted a 9-cent loss per share last quarter.
- High Valuation: With a market cap north of $2 billion, it carries a steep price-to-sales ratio of around 168.
Bottom Line: D-Wave’s focus on cloud-based quantum solutions and steady revenue growth are appealing. But as with other early-stage quantum companies, it’s still losing money, so expect volatility.
4. Quantum Computing Inc. (QUBT)
Why It’s Gaining Attention:
- Massive 2024 Stock Surge: QUBT skyrocketed almost 2,000% last year, going from under $1 per share to over $18.
- Growth Outlook: According to veteran Wall Street trader Stephen Guilfoyle, Quantum Computing Inc. could see revenue surge in the next couple of years, potentially up 200% in 2025.
Key Considerations:
- Minimal Current Revenue: The company posted less than $200,000 in quarterly revenue and a loss of six cents per share. It’s only projected to make $1.5 million in 2025.
- Speculative Play: While growth prospects excite traders, the company’s tiny revenue base and $2+ billion valuation mean it must rapidly expand to justify its market cap.
Bottom Line: QUBT is a high-flyer with big gains under its belt, but it remains a highly speculative bet. Investors should be mindful of potential swings given its limited track record.
5. Rigetti Computing (RGTI)
Why It’s on the List:
- Huge Share Price Increase: The stock soared nearly 1,900% in 2024, driven by excitement around its quantum integrated circuits.
- Collaborations & Funding: Rigetti has secured multiple government and defense industry partnerships, promising future non-dilutive capital to fund development.
- Hybrid Approach: Its systems blend quantum and classical computing, allowing easier integration into existing tech stacks.
Key Considerations:
- Falling Revenue: Year-to-date revenue is down 19%, and the company is still burning through capital.
- Recent Debt vs. Cash: Rigetti has slightly more debt than cash on hand, adding financial pressure.
Bottom Line: Rigetti’s skyrocketing share price underscores both excitement and risk. Though it has promising technology and government ties, the business remains in early stages, with profitability still a distant goal.
Assessing the Risks
All these companies face a shared hurdle: turning astonishing theoretical potential into real revenue. Traditional valuation methods (like price-to-earnings or even price-to-sales) are hard to apply when revenues are meager and profitability is still years away. Moreover, industry leaders (including Nvidia’s CEO) have cautioned that practical quantum computers might be decades off. Such concerns can spark sudden sell-offs and whipsaw stock prices.
Key Risk Factors Include:
- Technological Uncertainty: Will these businesses solve quantum’s scaling and error-correction challenges quickly enough?
- Long Timelines: Revenue and profitability may take far longer to develop than many anticipate.
- Intense Competition: Major tech giants and smaller specialists are racing to secure patents, talent, and strategic partnerships.
- Market Sentiment: Rapid rallies often lead to equally rapid declines if the market shifts its focus.
Making a Smart Move
For investors excited by quantum computing’s revolutionary promise:
- Set Realistic Expectations: These stocks may experience swings in the hundreds (or thousands) of percentage points.
- Consider Diversification: Investing a small percentage of a broader tech portfolio can help manage risk. You might even look at a specialized ETF like the Defiance Quantum ETF (QTUM) for a basket approach.
- Focus on Fundamentals: Partnerships, government contracts, and advancements in error reduction can indicate which companies might gain tangible leads over time.
Final Thoughts
Quantum computing has the potential to transform industries from healthcare to finance. That said, 2025 may still be early days in the quantum story. Of the five stocks spotlighted here, IonQ and Alphabet appear to balance promise with strategic partnerships and stronger support. D-Wave, Quantum Computing Inc., and Rigetti could also deliver significant returns—if their next breakthroughs materialize.
Remember, all quantum computing investments involve elevated risk. Assess how each company’s technology, partnerships, and financials align with your appetite for volatility. If you believe in the sector’s game-changing potential and can weather the ups and downs, a measured stake in one (or a few) of these players could be a rewarding move for the long term.
