Quantum computing stocks are becoming viable investments, according to B. Riley Securities. Shares of quantum computing companies are known to be volatile given that the technology is still in early stages. Most large-scale projects are considered experimental. However, the technology is rapidly advancing, with both Big Tech companies and a slew of quantum computing startups making progress. Wall Street has taken notice, with pure-play quantum stocks like IonQ soaring 122% over the past three years, and D-Wave Quantum jumping more than 320% in the past year alone. To be sure, the stocks dropped significantly from their 2025 peaks in November and have been slow to recover. The decline in leading pure-play names is an opportunity, said B. Riley analyst Craig Ellis. He expects shares will remain volatile, but several will see prospects for profitable growth strengthen toward the end of the decade. In a Thursday note to clients, Ellis reiterated his buy ratings on IonQ and D-Wave Quantum, and also upgraded his rating on Rigetti Computing to buy from neutral. Ellis’ $100 price target on IonQ suggests the stock can jump by nearly 107% from its latest close. His $36 price target on D-Wave and $35 target on Rigetti implies 38% and 48% potential upside, respectively. “From mid-2024 and through 2025, our sector thesis evolved from one of interesting, early-stage frontier technology to one with increasingly material commercialization momentum and rising late-decade profitable growth potential,” Ellis wrote. “Investment risks persist and include timing to scaled-up system production and a complementary software ecosystem, among others, but we believe the broader mosaic offers interesting investment potential with quantum’s increasing relevance in a range of high value workloads,” he continued. Several developments have strengthened Ellis’ conviction, including Nvidia CEO Jensen Huang’s improved sentiment on quantum computing. In October, Nvidia announced NVQLink architecture to support the buildout of hybrid quantum-classical systems. Ellis is also optimistic after Google’s Dec. 2024 release of its Willow quantum chip and the commercial progress from D-Wave Quantum, IonQ and Rigetti. For example, he cited IonQ’s acquisition of Vector Atomics last year, which added $200 million in revenue commitments from the United States Air Force Research Lab (bringing the total to $300 million). Ellis said IonQ’s increasing cash balance over the past year is encouraging. Rigetti also has expanded into U.S. academic and international government contracts with follow-through expected in early 2026, he said.
