Quantum computing stocks are surging after key developments for the technology

Quantum computing stocks have experienced significant recent rallies, with Rigetti Computing up 165% and peers like D-Wave, IonQ, and Quantum Computing also seeing substantial gains over the past month. This bullish sentiment is primarily fueled by Rigetti's recent $5.7 million in commercial sales and prior government contracts, signaling a critical shift from laboratory research to real-world commercial application. Further validating the sector, major institutions such as HSBC and Vanguard have reported progress in integrating quantum technology, underscoring growing industry adoption despite early-stage valuations.

Analysis

Quantum computing stocks have popped recently. - The once-obscure tech is having a moment as it moves out of the lab and into the real world. - Recent sales announced by a key company have sparked new bullish sentiment around quantum stocks. If you think AI is complicated, just take a look at the world of quantum computing. Once viewed as a technological black box, investors have warmed to quantum as the once-obscure technology has moved out of the lab and into the real world. Much of the latest rally has been sparked by progress from Rigetti Computing, a company that develops circuitry for quantum systems. But that's not the only factor driving growth for Rigetti and its peers. The four main quantum stocks have risen sharply this week, extending a monster rally over the past month. Here are the one-month moves of the big four quantum stocks: - Rigetti Computing: +165% - D-Wave Quantum: + 116% - IonQ: +79% - Quantum Computing: +76% Throughout 2025, many Big Tech companies have poured resources into the technology, which leverages quantum bits of information to perform computational functions faster than normal computers. But the latest catalysts have been a handful of real-world milestones in the sector. Rigetti stock surged after the company announced two purchase orders for its quantum computing systems on Wednesday, totaling $5.7 million. While the buyers weren't named, Rigetti said that one is an Asian manufacturing company and the other is a US AI startup. The dollar amount may be small compared to deals being cut in the world of AI, but the sale points to an important step forward for the space. Thomas Hulick, CEO of Strategy Asset Managers, acknowledged as much, noting that the impact on Rigetti's revenue will be modest, but the sentiment it drummed up among investors is the bigger deal. "It's actually investors reacting to real purchase orders," he told Business Insider. This isn't the first time Rigetti has ignited broader momentum. In September, the stock surged on news that the company had procured a $5.8 million contract with the US Air Force, sending its peers in the space surging as well. The latest developments have helped shift sentiment among analysts. Last month, B. Riley Financial raised its price target for Rigetti stock from $19 to $35. More recently, Ascendiant Capital Markets raised its price target on Quantum Computing stock from $22 to $40, implying 55% upside from Friday's price. Big institutions get on board Meanwhile, HSBC and Vanguard—titans of banking and asset management—have announced progress in using quantum tech in the last two weeks. A successful bond trade at HSBC powered by quantum computing and a quantum-fueled portfolio management exercise at Vanguard demonstrated that the technology could be a boon for investors. Hulick also noted the progress made by IBM and Google in quantum technology. He added that while the rallies seem dramatic with the tech still in its early stages, the momentum is building and investors should pay attention. "Valuations are ahead of themselves, but that's part of investing in the future," he said. "The signs of the commercial traction are definitely worth monitoring." The quantum computing sector is experiencing a significant upward re-rating, underscored by substantial one-month gains in key pure-play stocks, including Rigetti Computing (+165%), D-Wave Quantum (+116%), IonQ (+79%), and Quantum Computing (+76%). This bullish momentum is not speculative but is anchored by tangible evidence of commercialization, distinguishing the current rally from prior enthusiasm. The primary catalyst is Rigetti's announcement of two purchase orders totaling $5.7 million, which, while modest in value, signals a critical transition from laboratory research to real-world revenue generation. This follows a previous $5.8 million contract with the US Air Force, reinforcing a pattern of growing commercial and governmental traction. The trend is further validated by the adoption of quantum technology within major financial institutions, such as HSBC's successful quantum-powered bond trade and Vanguard's portfolio management exercise. Analyst sentiment has turned increasingly positive, with B. Riley and Ascendiant Capital Markets raising price targets on Rigetti and Quantum Computing, respectively. However, an expert note of caution highlights that valuations may be 'ahead of themselves,' a common feature of early-stage technology investments where market sentiment is pricing in future potential.

Key Decisions for Investors

• Given that tangible sales are the primary catalyst, investors should prioritize companies demonstrating a clear path to commercialization and monitor new contract announcements as the key performance indicator for the sector.
• In light of the sharp, triple-digit rallies and commentary that valuations are stretched, it may be prudent to manage risk by sizing positions cautiously or waiting for a price consolidation before establishing new exposure to these high-volatility stocks.
• For those seeking a lower-risk approach to the quantum theme, consider exposure through large-cap technology firms like IBM and Google or financial adopters like HSBC, which are integrating quantum capabilities without the same level of pure-play volatility.