Quantum computing is often considered the next frontier for the tech industry. Unlike traditional computers, which store their data separately in binary bits of zeros and ones, quantum computers can process those bits simultaneously in qubits. That difference allows them to process a lot more data at a faster rate than traditional binary computers.
However, quantum computers are also bigger, pricier, and consume more power while outputting a higher ratio of errors than traditional computers. That's why they're still mainly used by government agencies and universities for niche research applications.
Image source: Getty Images.
But over the long term, quantum processing units (QPUs) should become smaller, cheaper, more power-efficient, and more accurate. When that happens, they should be more widely adopted for machine learning, AI, and other mainstream computing tasks. Fortune Business Insights expects the quantum computing market to grow at a CAGR of 34.8% from 2024 to 2032 -- so its early movers could deliver big multibagger gains for their patient investors. Let's take a look at three stocks that could benefit from that secular trend: D-Wave Quantum (QBTS +3.00%), Rigetti Computing (RGTI +3.44%), and IonQ (IONQ +3.27%).
Three different approaches to a booming market
D-Wave's "quantum annealing" tools help companies streamline their business processes. It runs a client's workflows through its Leap quantum computing platform and then identifies the most efficient processes that consume the least power. In other words, it's a quantum-powered efficiency expert that can help companies trim the fat more efficiently than traditional AI and analytics companies. More than 100 companies, including Deloitte, Mastercard, Lockheed Martin, and Accenture, use its services. Its own modular Advantage QPUs are built to handle quantum annealing tasks.
NYSE: QBTS
Key Data Points
Rigetti is a "full stack" quantum computing company that develops its own QPUs, builds modular and non-modular systems, and allows developers to create their own quantum algorithms on its Forest cloud platform. It recently launched its 9-qubit Novera GPU for commercial customers and its 84-qubit Ankaa quantum system for government and research clients. Its major customers include the Superconducting Quantum Materials and Systems Center, the U.S. Air Force Research Lab, and Horizon Quantum Computing.
NASDAQ: RGTI
Key Data Points
IonQ develops its own QPUs and quantum systems. Its QPUs run on trapped ions, which give it a higher fidelity (error detection rate) and longer coherence (the time it can maintain its quantum state) than Rigetti's QPUs, which are built with the same transmon qubit technology as older chips from bigger tech companies like IBM.
IonQ sells three quantum computers: its older Aria system, its flagship Forte system, and its data center-oriented Forte Enterprise system. It plans to launch its fourth system, Tempo, this year. It also serves up its quantum computing as a cloud-based service, and its major customers include the U.S. Air Force Research Lab and General Dynamics.
NYSE: IONQ
Key Data Points
All three companies are growing rapidly
In 2024, D-Wave, Rigetti, and IonQ generated $9 million, $11 million, and $43 million in revenue, respectively. But all three companies could grow rapidly through 2027:
|
Estimated Revenue Growth |
2025 |
2026 |
2027 |
|---|---|---|---|
|
D-Wave Quantum |
176% |
56% |
95% |
|
Rigetti Computing |
(18%) |
161% |
64% |
|
IonQ |
96% |
97% |
71% |
Data source: Marketscreener.
D-Wave's expansion should be supported by its new Advantage2 QPUs, which are more powerful and efficient than its original Advantage QPUs, and its growth in the commercial and government markets. Rigetti should keep growing as it expands its first-party chip foundry, launches its non-modular 100-qubit system in 2026, secures new AI calibration deals, and deepens its integration with Nvidia's CUDA development platform.
IonQ's near-term growth will be driven by its recent acquisition of Oxford Ionics, which could accelerate the miniaturization of its trapped ion technology, the launch of its Tempo system, higher fidelity rates, and more enterprise deals to reduce its dependence on lumpy government and research contracts. Its newer products, like its Quantum OS and Hybrid Services Suite, should further expand its ecosystem while locking in more customers.
But they're also unprofitable and trade at high valuations
All three of these companies should remain unprofitable for the foreseeable future. They also look pricey relative to their near-term growth potential. As of this writing, D-Wave, Rigetti, and IonQ trade at 68, 93, and 36 times their projected sales for 2027, respectively.
Investors might scoff at those sky-high valuations, but all three companies could grow much larger as the quantum computing market expands and evolves. They'll remain highly volatile over the next few years, but investors who sit tight could be well rewarded over the next decade.
