Get Your Money Out of These 3 Quantum Computing Stocks by 2025

Investors should let these quantum computing stocks go by 2025:

  • Quantum Computing (QUBT): QCi’s penny stock status does not bode well for investors hoping to hold the stock long term.
  • Rigetti Computing (RGTI): Rigetti has struggled to meaningfully increase sales year-over-year.
  • D-Wave Quantum (QBTS): Despite steady sales growth, D-Wave Quantum is trading too close to “penny stock” status.
Quantum Computing Stocks - Get Your Money Out of These 3 Quantum Computing Stocks by 2025

Source: Shutterstock

Quantum mechanics could very well unlock the next stage of modern computing. Scientists can leverage the complex physics of subatomic particles to develop advanced computing systems.

In particular, physical matter has both particle and wave-like qualities. Quantum computing exploits this behavior using specialized hardware. Moreover, unlike in classical computing where there are two states of information — in the form zeroes and ones — but in quantum computing, there are qubits that can assume the states of zeroes and ones, as well as both states simultaneously through superposition.

Quantum computers will be useful for encryption and optimization as well as finding solutions for stochastic problems. The rise of generative artificial intelligence has created optimism around the potential of quantum computing systems, thereby causing certain quantum computing stocks to rally.

However, there are several quantum computing stocks investors should sell by 2025.

Quantum Computing (QUBT)

A digital rendering of a circuit board and digital chip in neon colors to illustrate quantum computing
Source: Shutterstock

Founded in 2018, Quantum Computing (NASDAQ:QUBT) or “QCi” is a pure-play startup that specializes in designing affordable quantum systems. The quantum computing startup has spent years developing its core QCi technology, which uses light and the versatility of its quantum mechanical properties for a variety of applications.

Moreover, QCi’s Dirac systems make up the company’s host of affordable quantum computing products, and these systems are both portable and low power.

Unfortunately for investors hoping to make a lucrative bet on an up-and-coming quantum computing company, QCi is technically a penny stock, trading at $0.70.

Not only is the stock a lot less liquid than larger cap stocks, but it is extremely volatile as well. Penny stock traders will probably enjoy trading a stock like QUBT, but the company’s lack of sustainable revenue growth over the years makes it hard to recommend holding long-term.

On a year-to-date basis, QCi’s share price has fallen 20%, although there may have been some bouts of volatility that generated quick gains for speculative investors. All in all, if you’re a long-term investor, QCi is probably not worth holding afte4 2024.

Rigetti Computing (RGTI)

Source: Bartlomiej K. Wroblewski / Shutterstock.com

Rigetti Computing (NASDAQ:RGTI) is a vertically integrated quantum computing startup that has made immense strides in the burgeoning field. The company has focused on developing quantum processors that go into actual quantum computing systems.

In the second quarter of fiscal year 2024, Rigetti revealed it had achieved “99.3% median 2-qubit gate fidelity” on its 9-qubit Ankaa quantum processor. This achievement has given Rigetti confidence that it will be able to achieve a similar fidelity, with its larger 84-qubit Ankaa-3 system that should be available later in the year.

From there, Rigetti will work on building a 336-qubit Lyra.

The macroeconomic environment has put Rigetti in a complicated situation. Revenues declined the first time in a while for fiscal year 2023.

In particular, generated $12 million in revenue, down more than 8% from fiscal year 2022. RGTI share price is also trading just above $1.00, which makes it more volatile than its worth for a long-term investor.

D-Wave Quantum (QBTS)

A concept image showing a quantum computer with a matrix background; quantum computing. leading quantum stocks, Best Quantum Computing Stocks to Buy
Source: Shutterstock

D-Wave Quantum (NYSE:QBTS) is the final quantum computing stock investors should avoid by 2025. D-Wave’s Advantage system is meant for enterprises, rather than research laboratories or institutions.

According to the company, the latest Advantage system comes with a new processor architecture with over 5,000 qubits and 15-way qubit connectivity.

Furthermore, D-Wave allows real-time access to its Advantage quantum computer via its “Leap” quantum cloud service.

The use of cloud computing platforms to deliver quantum computing power is not a novel idea, as many quantum computing companies aim to improve the scalability of their quantum computing hardware.

D-Wave Quantum has performed better from a financial perspective than many of its counterparts, increasing sales steadily in recent years. Losses are another matter, however.

D-Wave’s net loss has continued to balloon as it continues to develop new quantum systems.

What makes D-Wave a quantum computing stock to sell by 2025 is its stock price at $0.98 per share, making it volatile for long-term investors.

On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.

Tyrik Torres has been studying and participating in financial markets since he was in college, and he has particular passion for helping people understand complex systems. His areas of expertise are semiconductor and enterprise software equities. He has work experience in both investing (public and private markets) and investment banking.


Article printed from InvestorPlace Media, https://investorplace.com/2024/07/get-your-money-out-of-these-3-quantum-computing-stocks-by-2025/.

©2024 InvestorPlace Media, LLC