Quantum Computing Sector Gains Traction as Analysts Raise Price Targets

Quantum Computing Sector Sees Upgraded Analyst Price Targets Amid Rapid Advancement

Following the recent Quantum World Congress, B. Riley analyst Craig Ellis has significantly raised price targets for key players in the quantum computing sector, including IonQ (IONQ), D-Wave Quantum (QBTS), and Rigetti Computing (RGTI). This adjustment reflects a more optimistic outlook on the industry's accelerating technological progress and commercial viability.

Detailed Price Target Revisions and Market Performance

IonQ, Inc. (IONQ), a developer of general-purpose quantum computing systems, saw its price target increased from $75 to a Street-high of $100 by B. Riley, while maintaining a Buy rating. The stock has experienced an 833% gain over the past year and a 61% surge in the past week, currently trading around $67.63. The company reported an 81.6% year-over-year revenue increase for the second quarter and has achieved 100% revenue growth in each of the last three years. IonQ’s strategic acquisitions, such as Oxford Ionics, and expanding cloud partnerships with Amazon Web Services, Microsoft Azure Quantum, and Google Cloud Marketplace are key drivers. Its market capitalization stands at $21.93 billion, with a Price-to-Earnings (P/E) ratio of -36.76, indicating its growth-phase unprofitability.

Rigetti Computing, Inc. (RGTI), known for its quantum-classical infrastructure, had its price target boosted from $19 to $35, also with a maintained Buy rating. This upgrade followed the company securing a $5.8 million contract with the U.S. Air Force Research Laboratory to advance superconducting quantum networking. Rigetti’s stock has demonstrated a remarkable 4,182% increase over the past year, though it traded over 6% lower on the Monday following the analyst upgrade.

D-Wave Quantum, Inc. (QBTS), a pure-play quantum computing company focused on quantum annealing, saw its price target raised from $22 to $33, retaining a Buy rating. This represents a potential upside exceeding 20%. D-Wave’s stock has surged by 2,715% over the past year. The company, despite generating revenue (barely over $15 million for H1 2025), faces significant financial challenges, reporting a net loss of $167.3 million in Q2 2025. Its market capitalization is nearly $9.5 billion, leading to a valuation of over 350x forward sales, which is considered extraordinary.

The global quantum computing market is projected for substantial expansion, from $3.52 billion in 2025 to approximately $20.20 billion by 2030, reflecting a compound annual growth rate (CAGR) of 41.8%. This growth is driven by opportunities in diverse fields such as drug discovery, financial modeling, and cybersecurity.

Market Reaction and Driving Factors

The market's bullish response to these quantum computing stocks is largely attributable to tangible technological breakthroughs and increasing commercial applications. Analyst Craig Ellis noted that the industry’s advancements are progressing faster than even prior optimistic forecasts, with clear signs that a "frontier scientific field is quickly evolving into a sector with practical applications." Quantum Computing as a Service (QCaaS), offering cloud-based access to quantum systems, is lowering entry barriers and enabling broader adoption across industries. Increasing investments from governments and enterprises, alongside strategic partnerships, are accelerating commercialization.

However, the sector exhibits high volatility, as evidenced by beta coefficients of 2.61 for IONQ and 1.95 for QBTS, suggesting significantly higher price fluctuations compared to the broader market. This volatility is characteristic of nascent, high-growth technology sectors where future potential often outweighs current financial fundamentals.

Broader Context and Implications for a Nascent Industry

The parabolic gains seen in IONQ, QBTS, and RGTI — 833%, 2,715%, and 4,182% respectively over the past year — underscore the speculative yet high-reward nature of early-stage technology investing. These companies, while demonstrating impressive top-line growth and securing significant contracts, often operate with considerable losses as they invest heavily in research and development and scale their operations. For instance, IonQ’s significant revenue growth coexists with a quarterly loss of ($0.70) EPS. Similarly, D-Wave’s high valuation relative to its modest revenue and substantial losses highlights the market’s betting on future dominance rather than current profitability.

Institutional interest is also growing, with firms like Kennedy Investment Group establishing new positions in IonQ. The sector's strategic alliances, such as IonQ’s global infrastructure deals and Rigetti’s collaboration with QphoX for quantum networking, are crucial for advancing enterprise integration and overcoming technical challenges. The community forum encapsulates the sentiment, noting:

"Quantum computing is not the next step after AGI, but rather a parallel revolution. AGI is the “mind,” quantum is a “supercharged lab.”"

This perspective suggests a fundamental shift in technological capability rather than a mere evolution.

Expert Commentary on Industry Trajectory

B. Riley analyst Craig Ellis emphasized the industry's progress and regulatory support as critical accelerators for commercialization. He indicated that the speed at which quantum computing is moving from theoretical science to practical applications is noteworthy. While some companies like D-Wave have a commercial head start with quantum annealing, the broader market awaits more general gate-model quantum computing breakthroughs. The valuation of some quantum computing firms is seen by some as speculative, treating shares as "lottery tickets" given the significant dilution in capital raises and minimal revenue against large market capitalizations.

Looking Ahead: Navigating Growth and Risk

The quantum computing sector is poised for continued rapid evolution. Key factors to monitor include further technological advancements in hardware and software, the expansion of cloud-based quantum computing services, and the ability of leading companies to translate research into scalable, profitable commercial solutions. Upcoming economic reports, company earnings, and policy decisions related to quantum technology funding will significantly influence market movements. Investors will need to balance the immense long-term potential for disruption across industries with the inherent high risks, volatility, and significant capital expenditure characteristic of a technology still in its formative stages. The industry's trajectory will depend on a sustained pace of innovation, successful commercial deployments, and prudent financial management by its leading firms.