We Asked Retail What's Next For Battered Quantum Computing Stocks: Most Expect A Rebound Despite Mixed Industry Signals

Quantum computing stocks look set to extend Wednesday’s rally as traders continue to see value in them. After a strong 2024, these stocks took a hit early this year as industry titans such as Nvidia Corp.'s (NVDA) Jensen Huang and Meta Platforms, Inc.’s (META) Mark Zuckerberg expressed apprehensions regarding the technology's near-term utility.

Retail investors think otherwise. Stocktwits users predicted a rebound in a poll run by the platform. The results of the ongoing poll, which has collected responses from 9,300 users so far, showed that 56% feel a rebound is coming. Twelve percent said they would remain on the sidelines, but 33% said they saw further downside risk. 

News Flow Abounds

On Tuesday, quantum computing stocks bucked the tech sector weakness and advanced strongly. B. Riley analyst Craig Ellis doubled his price target for D-Wave Quantum, Inc. (QBTS), citing the company’s differentiated profile from the rest of the pack and its visible commercial uptake path.

Software giant Microsoft Corp. (MSFT) talked up quantum computing’s prospects in a blog post on Tuesday. “We are at the advent of the reliable quantum computing era. And we are right on the cusp of seeing quantum computers solve meaningful problems and capture new business value,” said Mitra Azizirad, Microsoft COO of Strategic Missions and Technologies.

She also announced the company’s “Quantum Ready” program, which aims to provide business leaders with insights and tools to build high-impact hybrid applications, invest in strategic skilling, access reliable quantum computers for experimentation, and embrace quantum safety.

Separately, College Park, Maryland-based IonQ, Inc. (IONQ) announced a partnership with the University of Maryland and the State of Maryland, under which more than $1 billion will be invested to transform Maryland into the “Capital of Quantum.”

IonQ manufactures high-performance quantum computers capable of solving complex commercial and research use cases. Its latest quantum computer IonQ Forte boasts 36 algorithmic qubits.

D-Wave said on Wednesday that it would partner with government IT solutions provider Carahsoft Technology to make its quantum computing technologies available to the public sector through Carahsoft’s reseller partners. D-Wave Chief Revenue Officer Lorenzo Martinelli said, “We believe this partnership is key to accelerating Government adoption of quantum, as it opens up access to annealing quantum computing now available through Carahsoft’s contract vehicles.”

Retail Upbeat

Sentiment toward D-Wave stock is ‘extremely bullish’ (76/100), better than the ‘bullish’ sentiment that prevailed a day ago. Chatter stayed at ‘high’ levels.

QBTS sentiment and message volume January 15, 2025, premarket as of 8:05 am ET | Source: Stocktwits

The retail mood on IonQ stock inflected to ‘bullish’ (64/100) from ‘bearish’ a day ago, with message volume moderating to ‘normal.’

IONQ sentiment and message volume January 15, 2025, premarket as of 8:05 am ET | Source: Stocktwits

Rigetti Computing, Inc. ($RGTI), a full-stack quantum computing company, also elicited ‘bullish’ sentiment (59/100) from the retail crowd, with message volume staying ‘high.’

RGTI sentiment and message volume January 15, 2025, premarket as of 8:05 am ET | Source: Stocktwits

In premarket trading, ahead of the release of the December consumer price inflation report, D-Wave climbed 17.76% to $5.57, IonQ gained a more modest 4.62% to $30.87 and Rigetti stock added 8.38% to $9.70.

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