Investors are flocking to quantum computing stocks like Quantum Computing Inc., IonQ, and Rigetti Computing, which have seen significant gains in recent months. However, with the technology still in its early stages, investors should exercise caution.
Quantum computers have the potential to disrupt various industries, including cloud computing, by solving complex problems faster than traditional supercomputers. But, getting these computers to work reliably is a major challenge. Researchers have made progress in this area, but more work needs to be done to overcome issues with hypersensitive quantum bits and errors.
Despite this, investors are buying into these stocks, which have market caps in the billions and price-to-sales ratios above 100. While some argue that these high valuations reflect the future potential of these companies, it’s essential to consider the “if” factor – will quantum computing become mainstream? If not, it’s unlikely that these stocks will deliver strong returns.
In contrast, AI has already been successfully commercialized, with software tools available for both individuals and businesses. The uncertainty surrounding quantum computing’s progress makes it challenging to predict which companies will succeed in bringing this technology to the masses.
Given the unproven nature of quantum computing, uncertainty around winners, and high valuations, it’s recommended to avoid buying these stocks for your portfolio in 2025. Instead, consider the expertise of analysts like Brett Schafer, who issue “Double Down” stock recommendations for companies on the verge of significant growth.
Source: https://finance.yahoo.com/news/buy-quantum-computing-stocks-2025-173000148.html