Quantum computing stocks have been delivering parabolic gains over the past year, and the trend is only accelerating. The sector may be undergoing a watershed moment as leading investment banks are recognizing the long-term potential, even though most of these companies are pre-revenue today.
B. Riley analyst Craig Ellis recently raised price targets across three major quantum computing stocks following the Quantum World Congress. He cited that “former frontier technology is rapidly advancing toward integrated capability and commerciality.”
The global quantum computing market is projected to grow from $3.52 billion in 2025 to approximately $20.20 billion by 2030 at a 41.8% CAGR. And these are today’s estimates, without taking into account likely game-changing breakthroughs that may take place in the next five years.
Here are three quantum computing stocks investors are piling into, and Wall Street is hiking price targets on:
IonQ (IONQ) is the leading quantum computing startup. It is developing trapped-ion quantum computers that could power future AI data centers. B. Riley analyst Craig Ellis raised the firm’s price target to $100 from $75 while maintaining a “Buy” rating. This is the highest Street target for the stock.
IONQ has been raising significant amounts of cash to expand its cash runway and take advantage of the market rally. This, in turn, is making investors even more bullish, as the company now has ample funds to pour into new quantum computing breakthroughs.
IonQ is already expanding its cloud platform partnerships with Amazon (AMZN) Web Services, Microsoft (MSFT) Azure Quantum, and Google (GOOG) (GOOGL) Cloud Marketplace. It is also using the cash it has raised to acquire several other quantum computing startups.
IONQ stock is up 833% over the past year.
D-Wave Quantum (QBTS) is an underdog that is quickly becoming one of the frontrunners in the quantum computing space. It is one of the commercial leaders in quantum annealing systems. It can optimize problems across various industries.
D-Wave’s management has consistently managed to impress the market at quantum computing events, which it has then used to raise cash and keep the flywheel going. QBTS stock is up 2,715% over the past year due to a string of breakthroughs, and the company aggressively executed a PR offensive and turned the business around.
B. Riley raised its QBTS price target to $33 from $22. The company is working with NASA’s Jet Propulsion Laboratory on advanced cryogenic packaging to accelerate development towards a 100,000-qubit system. This could lead to even more gains if successful.
Rigetti Computing (RGTI) operates a full-stack quantum computing company. B. Riley increased its price target for RGTI significantly, from $19 to $35, and tagged it as a “Buy,” and this is one of the biggest target adjustments in the sector.
The company’s quantum-classical infrastructure provides high-performance integration with public and private clouds for practical quantum computing use cases.
Rigetti recently secured a $5.8 million contract with the Air Force Research Laboratory to develop systems that bridge entanglement between superconducting qubits and optical photons. Bulls expect these contracts to expand significantly over the coming years as quantum computing covers more use cases.
RGTI is up 4,182% over the past year.
On the date of publication, Omor Ibne Ehsan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com