Zinger Key Points
- Quantum computing stocks have seen a triple digit growth over six months and one year.
- ETF tracking these stocks rose 26.29% in the last six months and 53.69% over a year.
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Popular quantum computing stocks have been surging following a slew of positive news flow but this valuation metric shows that the stocks could be overly expensive. While some analysts stay positive, others believe these could be subject to “manipulation.”
What Happened: Stocks like Rigetti Computing Inc., Quantum Computing Inc., D-Wave Quantum Inc. and IonQ Inc. have registered a triple-digit gain over the last six months and one year. The exchange-traded fund tracking these stocks, Defiance Quantum ETF, rose 26.29% in the last six months and 53.69% over a year.
| Stocks | Six Month Performance | One Year Performance |
| Rigetti Computing Inc RGTI | 860.68% | 1058.76% |
| Quantum Computing Inc QUBT | 1548.48% | 1260.00% |
| D-Wave Quantum Inc QBTS | 405.22% | 718.31% |
| IonQ Inc IONQ | 385.40% | 282.95% |
| Defiance Quantum ETF QTUM | 26.29% | 53.69% |
Since these quantum computing companies are still in their growth phase and currently have negative earnings, using the price-to-earnings ratio is not possible while estimating their valuation.
However, the price-to-sales ratio, found by dividing a company’s market capitalization by its total sales, can be used to value such firms. According to the data from Bloomberg, the P/S ratio for these companies is also quite high.
| Stocks | Price-To-Sales Ratio |
| Rigetti Computing | 150.48 |
| Quantum Computing | 2,672.50 |
| D-Wave Quantum | 104.63 |
| IONQ | 381.86 |
| Average | 827.3675 |
CNBC’s Jim Cramer steered investors toward quantum stocks in a recent X post, suggesting investors reinvest gains from GameStop Corporation GME into Rigetti.
While he attributed it to RGTI’s extraordinary trading volume of 352 million shares against its 280 million outstanding shares, Nigam Arora and Dr. Natasha Arora of The Arora Project cautioned investors by saying that they should trade these stocks “carefully and patiently”.
“Under the present situation of quantum stocks becoming totally divorced from reality, the best course of action for investors is to be patient,” he said.
According to him, these stocks are being pumped by the meme crowd and “It is a grave mistake to emulate meme crowd behavior and become prey of the manipulators.”
Why It Matters: The quantum computing sector experienced a surge of interest following Google’s December 2024 announcement of the Willow chip.
However, this enthusiasm was tempered by Nvidia Corporation‘s NVDA CEO Jensen Huang‘s prediction at CES that practical quantum computing applications are still 15 years away. This aligns with the views of many leading scientists who anticipate a longer timeline for economically viable quantum computers.
This sentiment was echoed by Meta Platform Inc‘s META Mark Zuckerberg during his Joe Rogan podcast appearance, acknowledging the technology’s current limitations.
Despite these cautious predictions, Microsoft Corporation MSFT has taken a proactive approach, aiming to make its business clients “quantum-ready” by 2025. Microsoft emphasizes the importance of preparing for the future of quantum computing, even as it remains in its early stages.
Following Microsoft’s lead, Nvidia announced the first-ever Quantum Day at GPU Technology Conference 2025, signaling a growing industry interest in the technology.
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