Quantum computing stocks jumped sharply toward the end of last week after reports that the Trump administration may take equity stakes in several firms. The idea of the U.S. government owning part of private quantum companies sent traders rushing in. However, a quick denial from the Commerce Department added uncertainty. Still, shares of IonQ (IONQ), Rigetti Computing (RGTI), D-Wave Quantum (QBTS), and Quantum Computing Inc. (QUBT) all posted major gains.
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The report said Deputy Commerce Secretary Paul Dabbar was leading talks. Dabbar once ran Bohr Quantum Technology and worked at JPMorgan Chase (JPM). He is now seen as one of the government’s strongest voices for U.S. leadership in quantum computing. Yet a Commerce spokesperson told reporters there are no active negotiations. Even so, investors took the hint that Washington might be ready to back the field in new ways.
A Rally Built on Hope
The jump in share prices added to a rally already powered by big private money. Earlier in October, JPMorgan announced a $1.5 trillion Security and Resiliency Initiative. The bank said it plans up to $10 billion in equity and venture funding for “frontier and strategic technologies.” Quantum computing was listed along with AI and cybersecurity. The move signaled confidence from one of Wall Street’s largest players.
At the same time, companies in the sector delivered real scientific progress. Google (GOOGL) (GOOG) said its Willow quantum chip achieved a verifiable “quantum advantage.” The system ran a new algorithm 13,000 times faster than top supercomputers. In parallel, IonQ also announced it had reached a record 99.99% fidelity in two-qubit gates, reducing system errors. These updates helped feed optimism that the technology is moving closer to commercial use.
Insiders Take Profits
As stock prices soared, some executives sold large amounts of shares. Rigetti Computing’s chief executive officer, Subodh Kulkarni, sold 1 million shares in May for about $11 million. The sale was not part of a pre-set trading plan, which means it was a personal choice. After the transaction, he held no shares in the company. Other insiders across the quantum space have sold more than $50 million in stock over five years.
These moves raised questions about confidence inside the companies. Some analysts and investors say it looks like executives are taking profits while enthusiasm remains high. Rigetti’s shares have climbed about 2500% in the past year. The company’s price-to-sales ratio now stands above 1,200. D-Wave Quantum trades at roughly 455 times expected sales. IonQ’s $20 billion market value is based on projected 2025 revenue of only $100 million.
Valuations Raise Bubble Concerns
Analysts warn that these figures are hard to justify. The total market value of the sector is now above $40 billion, while the combined annual revenue of its top companies is under $100 million. Most are still losing money as they build technology that may not be ready for the market for years. Rigetti lost more than $200 million last year on $11 million in sales. IonQ posted a $170 million loss on $50 million in revenue.
Because of the fast gains and heavy insider selling, some market watchers now compare quantum stocks to the early 2000s internet boom. The fear is that prices are driven more by headlines and speculation than by actual business growth. As one strategist put it, “This looks like a bubble.”
Even so, the story is not only about hype. Breakthroughs from Google and IonQ show the field is making progress. Yet, investors face a choice between long-term promise and short-term risk.
Using Tipranks’ Comparison tool, we’ve assembled and compared all the publicly traded quantum computing companies appearing in the article with other notable ones. It’s a great way for investors to gain a broader perspective on each ticker and the quantum computing industry as a whole.
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