2026 Big Tech Quantum Bets: IBM and Amazon's Edge Over Pure-Plays?

In the first several months of 2025, pure-play quantum computing stocks such as Rigetti Computing RGTI and D-Wave Quantum QBTS delivered spectacular returns as investors chased early-stage breakthroughs and future potential. From January to September, while QBTS stock rallied 157%, RGTI gained 49%. These rallies were driven by rapid valuation expansion, growing venture investment in the sector and positive sentiment around promising revenue streams, despite overall revenues remaining modest.

However,  the momentum has cooled significantly lately. Pure-play names have shifted from parabolic gains toward more muted year-to-date performance and heightened volatility amid stretched valuations. From October 2025 to date, shares of QBTS gained just 2.3% while RGTI lost 24.9% during this period. As pure-plays struggled to sustain stock-price momentum, large technology companies such as Amazon AMZN and IBM IBM attracted stronger investor sentiment, supported by progress in their quantum initiatives embedded within diversified and profitable business models.

Who Stands to Benefit More From Quantum Computing in 2026?

As 2026 approaches, several Wall Street analysts have flagged the possibility of further downside for pure-play quantum stocks, noting that while engineering milestones and strategic partnerships are meaningful, revenue scale, margin visibility and sustainable profitability remain years away. This lack of near-term commercial clarity makes it difficult to confidently project outsized gains in 2026, even as the long-term promise of quantum computing remains intact.

In contrast, diversified technology leaders such as IBM and Amazon offer a structurally different risk profile. Their quantum initiatives are embedded within large, cash-generating businesses, allowing continued investment without dependence on near-term quantum monetization. IBM’s enterprise relationships and hybrid quantum-classical roadmap, alongside Amazon’s cloud-based quantum services through AWS, position both companies to benefit incrementally as adoption evolves. As a result, 2026 may favor steady, fundamentals-driven returns from Big Tech, rather than another speculative surge in pure-play quantum stocks.

2 Best Picks

Amazon: Amazon Web Services (AWS) is advancing quantum computing primarily through Amazon Braket, a cloud-based quantum research and development platform that gives users access to a wide array of quantum devices, including superconducting, trapped-ion and neutral-atom systems via a unified interface for building and running algorithms. In 2025, AWS announced Ocelot, its first proprietary quantum computing chip, designed with cat qubits to make error correction up to 90% more resource-efficient.

Continued enhancements like “program sets” to accelerate quantum task execution further strengthen Braket’s utility for researchers. In 2026, these developments may translate into deeper enterprise engagement with hybrid quantum-classical workflows and early commercial experimentation within AWS’s broader cloud ecosystem.

Amazon, a Zacks Rank #2 (Buy) stock, has gained 5.9% from October 2025 to date. The stock is projected to report 2026 earnings growth of 9.5% on revenue growth of 11.3%.

IBM: The company’s quantum computing strategy follows a public roadmap focused on achieving scientific quantum advantage by the end of 2026. In late 2025, IBM unveiled Quantum Nighthawk, a 120-qubit processor with enhanced connectivity and error-mitigation capabilities and plans to scale to higher gate counts through 2026, enabling more complex circuits.

Complemented by its open Qiskit software stack and partnerships for a community-wide quantum advantage tracker, IBM’s ecosystem is structured to drive adoption across research and enterprise use cases. For 2026, IBM’s combination of hardware, software and cloud access positions it to deliver measurable quantum progress integrated with its broader technology offerings.

IBM, another Zacks Rank #2 stock, has gained 8.1% from October 2025 to date. The stock is projected to report 2026 earnings growth of 7.5% on revenue growth of 4.9%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research