Don't Miss These 2 Small Quantum Stocks Poised to Pop

Most investors are now aware of the remarkable rallies that have been locked inside the technology sector of the United States. However, those extraordinary overnight gains have mainly been confined to the artificial intelligence level, with a few exceptions in the semiconductor and chipmaking industries. In today’s market, investors need to start figuring out where the next wave of innovation and excitement might come from.

There are arguably three areas of innovation in the global economy, and artificial intelligence is one of them, but it doesn’t stop there. In the world of energy, nuclear energy might be one of these great leaps forward that could make a few millionaires bold enough to get in early; however, that journey might be too far away from proper development to even be discernible.

A more advanced area of secular growth that could become beneficial in the coming years is quantum computing, a close relative of artificial intelligence and a case study that is currently being adopted quietly. For this reason, investors may benefit from adding stocks like Rigetti Computing Inc. (NASDAQ: RGTI) and Quantum Computing Inc. (NASDAQ: QUBT) to their watchlists as potential multi-baggers.

Why Quantum Computing?

Moore’s law dictates that computing power is set to double in its potency every two years, and this is far from just being a recommendation on how often consumers should buy new smartphones and laptops; it actually gives investors a roadmap of where to start looking for new ideas next.

With this in mind, the computing power that the semiconductor industry has demonstrated so far is hitting a plateau, as there is a physical limit on how small chips can actually get without compromising their power. This is where quantum computing comes into play, a new way to retain both power and efficiency without many compromises.

Companies like Alphabet Inc. (NASDAQ: GOOGL) have already been developing their own version of a quantum computer, but as every venture capitalist knows, it’s much easier to buy a successful case study than to build one, so this is where investors might get a chance to turn their portfolios into a home-run of a play.

Rigetti Computing Attracted the Big Guns

As of Early May 2025, institutional buyers from the Vanguard Group decided to increase their stake in Rigetti Computing stock by as much as 20.7%, bringing their total stake to $112.3 million, or approximately 5% ownership in the company. This 5% is no coincidence, as it grants Vanguard stewardship status in this company, and that’s where it gets interesting.

Management can now rely on this stewardship and capital backing to develop and deliver on a growth vision moving forward, an event that will turn investors into winners, provided they are comfortable with investing in this early-stage company.

At a market capitalization of only $3.2 billion today, the sky is the limit. At the same time, the ground is still close enough to limit losses. These are the sort of asymmetrical bets that every multi-bagger play tends to carry at first. Even though this company is small and a comer, its exposure to quantum computing has earned it some Wall Street attention.

As of mid-May 2025, Quinn Bolton from Needham & Company rates Rigetti Computing stock a Buy, assigning a valuation of up to $15 per share. Compared to where the stock trades today, this view implies that it can rally by as much as 36.3%, a fraction of its full potential, once the industry begins to heat up.

However, it seems that the entire market is very optimistic on this view for the future, as it is now willing to pay up to 24.6x in a price-to-book (P/B) ratio, a massive premium to the rest of the computer sector’s average 6.7x P/B, signaling utter confidence that within quantum computing, Rigetti is a likely winner.

The Right Components for Quantum Computing Inc. 

For these small companies to truly make the leap from small-cap to mid- or large-cap, there must be more than just momentum in their underlying technologies; numbers and financial metrics also need to be in place. In the case of Quantum Computing Inc. stock, both are covered.

This company has transitioned from a net loss of $0.47 per share in the fourth quarter of 2024 to a net earnings per share (EPS) of up to $0.13 in the first quarter of 2025. This is the sort of growth that can be expected to occur within 12 months, so the fact that this company achieved it in only three makes a very strong case for its continued upside potential.

Despite a 12-month rally of up to 3,183%, chances are the true ceiling for QUBT stock is not even within sight yet, especially if the company can keep delivering these sorts of EPS surprises. The best part is that, at only $2.8 billion in market cap, the upside potential is still largely uncharted.

Some of the leading semiconductor and artificial intelligence companies are valued in the hundreds of billions (if not the trillions) of dollars. Given enough time for quantum computing to develop in the global economy, investors can see how these two stocks can become multi-baggers with ease.

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The article "Don’t Miss These 2 Small Quantum Stocks Poised to Pop" first appeared on MarketBeat.