Quantum computing has seen significant growth in its share price over the past year, with companies like IonQ, Rigetti Computing, and D-Wave experiencing returns of 89%, 1,500%, and 1,800%, respectively. This surge is driven by potential applications in science, climate research, materials development, and AI enhancement. However, experts caution that quantum computing is still in its early stages, facing significant hurdles.
One major challenge is error rates in quantum computers. Current systems have high error rates, which must be significantly reduced for transformative effects. To address this, some tech leaders suggest combining traditional supercomputers with quantum computers to handle complex tasks and reduce errors.
Despite these advancements, the industry still faces skepticism due to low revenue and high losses. Companies like IonQ, Rigetti, and D-Wave have minimal sales compared to their losses, with operating expenses exceeding revenue. Their valuations have skyrocketed, leading some to worry about a potential pullback if the companies fail to generate meaningful sales.
While experts believe quantum computing will eventually become profitable, investors seem overly optimistic. The high price-to-sales ratios of these companies suggest they may be overvalued. As the market becomes increasingly impatient with AI-related stocks that have profits to support their gains, investors should approach quantum computing stocks with caution and consider the industry’s progress before investing.
Source: https://www.fool.com/investing/2025/11/24/2-biggest-hurdles-for-quantum-computing