Quantum computing stocks have catapulted this year, especially after Dec. 9, when Alphabet Inc.’s GOOG GOOGL Google announced its latest quantum chip, Willow. However, analysts have a negative consensus rating for these stocks.
What Happened: Quantum Computing Inc. stock surged by 52.95% on Thursday and 2,785.39% over the year but Citron Research has called this move the “most ridiculous” citing its spending on research and development.
Stocks of other companies, including Rigetti Computing Inc., and D-Wave Quantum Inc. have soared enormously, whereas other quantum computing players like IONQ Inc. and International Business Machines. have seen modest growth.
| Stock | 5-Day Change | 1-Month Change |
| Quantum Computing Inc. QUBT | 296.86% | 911.02% |
| Rigetti Computing Inc. RGTI | 60.87% | 716.03% |
| D-Wave Quantum Inc. QBTS | 108.37% | 501.34% |
| IONQ Inc. IONQ | 27.99% | 34.46% |
| IBM IBM | -5.23% | 4.72% |
See Also: Alphabet’s Quantum Willow Chip Wows Analyst: Google At The ‘Leading Edge Of Technology Innovation’
Why It Matters: The funds allocated to research and development as a part of operating expenses were down to $2.24 million in the third quarter of the current fiscal for Quantum Computing. This compares to $2.32 million during the same period last year.
According to Citron, this is a “striking mismatch for a company claiming to offer integrated high-performance quantum systems.”
The company was recently awarded a $26,000 contract from NASA. According to the CEO and CIO of the Arora Report, Nigam Arora, “The contract is very small and does not justify the run-up.”
Quantum computers, using qubits, promise to revolutionize computing by performing complex calculations exponentially faster than traditional computers.
Google’s recent breakthrough with Willow demonstrates the potential of quantum memory as it performed a standard benchmark computation in under five minutes which currently takes a supercomputer 10 septillion years — a number that vastly exceeds the age of the Universe.
However, high error rates remain a significant challenge, hindering commercial viability and uncertain timelines for widespread adoption.
“Buying $RGTI based on Google's quantum success is as misguided as believing every TikTok guitarist is the next Taylor Swift,” said Citron Research.
What Are Other Analysts Saying: According to the analysts tracked by Benzinga, most of these quantum computing companies face a potential downside in the future, with the exception of IBM.
| Stocks | Last Three PT’s Average | Up/Downside Potential |
| Rigetti Computing | $3.33 | -67.09% |
| Quantum Computing | $8.63 | -62.77% |
| D-Wave Quantum | $4.58 | -48.33% |
| IONQ | $20.67 | -46.04% |
| IBM | $226.67 | 2.66% |
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© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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