Billionaire investors have largely shunned pure-play quantum computing stocks like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc., choosing instead to bet on Alphabet (Google). This is because the tech giant already has profitable operating segments, such as its internet search platform, YouTube, and Google Cloud, which generate significant cash flow. With $98.5 billion in cash reserves, Alphabet can invest in quantum computing without jeopardizing its existing operations.
Historically, the rapid rise of new technologies often leads to bubbles that burst when they fail to deliver on their promises. The tech industry is no exception. In the years leading up to the dot-com bubble bursting, internet businesses peaked at price-to-sales ratios ranging from 30 to 40. Today, pure-play quantum computing stocks like IonQ and Rigetti Computing have P/S ratios between 130 and 2,661.
In contrast, Alphabet’s diversified business model, strong cash reserves, and established operating segments make it a safer bet for investors looking to gain exposure to quantum computing without taking on excessive risk. By betting on Google, billionaires are essentially hedging against the potential risks associated with pure-play quantum computing stocks, which could be hit hard if the bubble bursts.
Source: https://www.fool.com/investing/2025/11/26/billionaires-favorite-quantum-computing-stock-ionq