Quantum computing has made significant strides in recent years, leading retail investors to pour into pure-play quantum stocks like IonQ (IONQ) and D-Wave Quantum (QBTS). Both companies are working on developing the technology, but which one is better positioned for success?
IonQ focuses on improving stability, while D-Wave aims to scale its quantum computing capabilities. IonQ’s “trapped ion” technology creates some of the most stable qubits in the market, but it’s complicated and expensive to implement. In contrast, D-Wave uses an “annealing” approach that leads to higher qubit counts, albeit at a cost to stability.
Despite the potential for quantum computing to revolutionize industries like cryptography, drug discovery, and materials science, investors should be cautious of the current valuations of these stocks. Both IonQ and D-Wave have seen their market capitalizations balloon beyond what makes sense given their current technology development stage.
D-Wave’s application of its technology is limited in scope, and it’s unclear how much actual quantum computing is happening in its hybrid systems. Meanwhile, IonQ’s market value has been inflated despite only generating $53 million in revenue in the past year, dwarfing its market cap of over $21 billion.
For now, neither company stands out as a clear winner. Instead, investors might consider companies with strong cash flow to continue developing quantum computing technology for years to come.
Source: https://www.fool.com/investing/2025/11/01/better-quantum-computing-stock-d-wave-quantum-qbts