Should you buy quantum computing stocks in 2025?

Investors are excited about artificial intelligence (AI) stocks. Quantum computing stocks could be next. Companies such as Quantum Computing Inc. (NASDAQ:QUBT), IonQ (NYSE:IONQ)And Rigetti Computing (NASDAQ:RGTI) have risen sharply in recent months. Investors are betting on these quantum computing companies as the technology returns to the mainstream with recent breakthroughs alphabetResearch department.

If quantum computing is commercialized, it could revolutionize almost every industry in the world, but especially cloud computing, making it a technology potentially on par with recent developments in AI. Should you buy quantum computing stocks like Rigetti and IonQ in 2025? Let’s dig deeper and find out.

Quantum computing has the chance to revolutionize many parts of the economy. But why? Simply put, quantum computers can significantly change the complexity of problems that can be solved with computers. By harnessing the uncertainty of quantum mechanics, the computers function differently than traditional transistor systems, allowing a user to instantly solve problems that would take a traditional supercomputer years to accomplish. The technology promises to help a wide range of industries, from self-driving cars and agriculture to physics simulations and drug discovery.

The problem is getting these computers to run reliably. With hypersensitive quantum bits – also called qubits – which can be disturbed by the external environment and cause errors in the computing process, quantum computers have remained small for now and in the early stages of research. Recently, researchers have made progress in this area. For example, Alphabet’s quantum computing division launched a new quantum computing chip called Willow, which reduces the errors in the quantum system when scaling.

Other companies are working hard to solve these problems, including Rigetti Computing, IonQ and Quantum Computing Inc. All three of these stocks are up hundreds of percent or more in recent months. Quantum Computing Inc. is up over 4,000% in the last six months, delivering incredible returns to shareholders this year.

Investors are falling over themselves with these quantum computing growth stocks. However, if we look under the hood, the financials aren’t pretty. IonQ had revenue of $37.5 million in the last 12 months with a net loss of $171 million. Rigetti only generates $12 million in revenue and loses $60 million a year. Even worse is Quantum Computing Inc., which generates less than $1 million in annual revenue and loses $23 million a year.

All three of these stocks now have market caps in the billions and price-to-sales (P/S) ratios above 100. Bulls and management could argue that the stocks reflect the future potential of these companies. If quantum computing is solved, the sales and profits of some of these companies will skyrocket.

However, that’s a big caveat – “if” quantum computing can be made available to the masses. Who can say it will ever happen or if it will happen within the next few years?

QUBT horsepower ratio chart — QUBT PS Ratio data from YCharts.

I have no concerns about investors betting on an emerging sector. There has been a lot of money to be made from the AI boom of the last few years, and that will likely continue to be the case in the future. There’s a difference between AI and quantum computing: Companies have already figured out how to make AI tools accessible to individuals and businesses through software. It is still unclear whether advances in quantum computing will go far enough to make the technology mainstream.

If so, who can say which companies will do this? It could be the three top stocks listed above, but it could also be Alphabet, with its vast resources and unlimited budget, or a new company. Expectations for these stocks have risen, making it even harder to rationalize where they trade. These are companies with hardly any sales and market capitalizations in the billions. The numbers don’t make sense.

Early-stage, untested technology, uncertainty about who the winning company will be, and low valuations: these are not characteristics that suggest strong future returns for shareholders. Avoid buying quantum computing stocks for your portfolio in 2025.

Have you ever felt like you missed the boat when it came to buying the most successful stocks? Then you’ll want to hear this.

On rare occasions, our expert team of analysts will provide one “Double Down” shaft Recommendation for companies that they think are about to collapse. If you’re worried you’ve already missed your investment opportunity, now is the best time to buy before it’s too late. And the numbers speak for themselves:

Nvidia: If you had invested $1,000 when we doubled in 2009, You would have $349,279!*
Apple: If you had invested $1,000 when we doubled in 2008, You would have $48,196!*
Netflix: If you had invested $1,000 when we doubled in 2004, You would have $490,243!*

Right now we’re issuing “Double Down” warnings for three incredible companies, and such an opportunity may not happen again in the near future.

See 3 “Double Down” Stocks »

*Stock Advisor returns as of December 16, 2024

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Brett Schafer holds positions at Alphabet. The Motley Fool has positions in and recommends Alphabet. The Motley Fool has a disclosure policy.

Should you buy quantum computing stocks in 2025? was originally published by The Motley Fool

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Should you buy quantum computing stocks in 2025?

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