Quantum computing stocks have skyrocketed up to 829% over the trailing year, but experts warn that the technology still needs time to mature and evolve. Several headwinds point to a potential bubble bursting in 2026.
While quantum computers offer exciting real-world applications, they are not yet ready for widespread adoption. The industry is expected to create $450 billion to $850 billion in global economic value by 2040, but this growth will take time.
Investors have been drawn to the potential of sustained triple-digit sales growth for pure-play stocks like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. However, these companies are expected to continue losing money in the near future due to limited access to credit markets and high operating costs.
The first-mover advantages of these companies are also at risk, as other influential businesses like Alphabet and Microsoft are investing heavily in quantum computing technology. Furthermore, the valuations of these stocks suggest a high probability of a bubble-bursting event, with P/S ratios well above the arbitrary line that has helped identify previous bubbles.
Investors should exercise caution when considering investments in IonQ or other quantum computing stocks. The Motley Fool’s Stock Advisor team recommends avoiding these stocks and instead looking at the top 10 list, which has delivered a market-crushing outperformance of 1,002% compared to the S&P 500.
Source: https://www.nasdaq.com/articles/prediction-wall-streets-biggest-bubble-will-burst-2026-and-im-not-talking-about-artificial