Quantum Computing Investments: A Once-in-a-Lifetime Opportunity?

Advancements in quantum computing are generating buzz in the stock market, promising to revolutionize fields like machine learning, optimization, simulations, and cryptography. Some investors may wonder whether quantum systems will follow the meteoric rise of artificial intelligence (AI) as a game-changing technology, driving massive growth for pioneering companies and spectacular shareholder returns.

Are quantum computing stocks a once-in-a-lifetime opportunity for investors? Here's what you need to know.

Image source: Getty Images.

What is quantum computing?

Quantum computers are designed to tackle highly complex calculations, far surpassing the capabilities of even the most advanced supercomputers. Unlike classical systems that rely on binary logic, quantum computers use qubits, which can represent 0, 1, or both simultaneously in an additional dimension of data.

This ability to unlock exponentially greater computational speeds could be critical for future breakthroughs in everything from cybersecurity, encryption, and drug discovery to materials science, financial modeling, and even the next generation of AI.

According to some experts, quantum computing could represent a $170 billion market for hardware and software providers by 2040, with rapid acceleration expected into the next decade.

The early pioneers

Several companies are advancing quantum computing with diverse architectures.

IonQ (NYSE: IONQ) employs trapped-ion technology, generating $47 million in revenue in 2024 (through March 31) via its quantum computing-as-a-service (QCaaS) model on cloud platforms. Though not yet profitable, IonQ projects nearly doubling its revenue in 2025 amid numerous high-profile contracts, including with the U.S. Air Force Research Lab.

D-Wave Quantum (NYSE: QBTS) uses quantum annealing to address optimization problems, counting 133 customers exploring real-world applications as last reported. Its shares are up 1,186% over the past year.

Rigetti Computing (NASDAQ: RGTI) stands out through vertical integration, designing and fabricating its Ankaa-3 system in-house, with plans for a 108-qubit superconducting system later this year. Despite modest revenue of $1.5 million in its first quarter (through March 31), its ambitious roadmap fueled a 1,135% stock gain over the past year.

In fact, market enthusiasm has carried each of these three quantum investments to multibagger gains and billion-dollar valuations, despite their relatively modest financial results.

While it's unclear which quantum architecture will have a competitive edge, the opportunity will be fiercely competitive. Established tech giants, such as Alphabet, International Business Machines, and Microsoft, have embraced quantum computing, announcing proprietary quantum chip development. These companies leverage vast resources alongside AI and cloud computing leadership, positioning them at the forefront of innovation.

Still in the NISQ era

Before getting too excited about the trajectory of the quantum pioneers, it's important to recognize that the technology has limitations. The main challenge quantum computing faces is that the systems are still stuck in what researchers refer to as the noisy intermediate-scale quantum (NISQ) era.

While capable of achieving quantum solutions, current quantum computers struggle to scale qubits significantly while managing rising error rates. This means that the quantum computers being sold by companies like IonQ and D-Wave Systems are limited to niche or research applications -- unable to outperform conventional hardware on a reliable basis.

In contrast to AI, which had its breakthrough with the emergence of AI chatbots in late 2022, quantum computing may be lacking a defining application necessary to drive widespread adoption at the enterprise level. The timetable for quantum computing's ChatGPT moment will continue to be debated, making investing in the industry particularly tricky.

Extreme valuations warrant caution

More pressing for investors in the near term will be reconciling some eye-watering valuations for the companies in the quantum computing spotlight. Amid the massive stock price gains over the past year, shares of IonQ, D-Wave Quantum, and Rigetti Computing are all trading at a forward price-to-sales (P/S) ratio exceeding 100, an extreme premium compared to the more proven tech giants and their single-digit sales multiples.

The market appears to be pricing in hyper-growth scenarios, betting on overcoming technical hurdles and achieving commercial scalability -- outcomes that remain uncertain. With extremely high expectations, the risk is that results disappoint, forcing expectation resets and sharp stock declines.

IONQ PS Ratio (Forward) data by YCharts

The big picture for investors

Quantum computing investments hold potential, but early-stage uncertainties and sky-high valuations make it a more speculative gamble than a once-in-a-lifetime opportunity. The prudent move is to stick with companies presenting high-quality fundamentals, generating positive cash flows, and showing consistent profitable growth. Companies like Alphabet and Microsoft provide safer quantum exposure within diversified portfolios.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. Dan Victor has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, and Microsoft. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.