After triple-digit gains, can this high-risk sector keep defying gravity?
For those chasing the next tech revolution, exposure matters—but balance matters more.
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Some quantum computing stocks defied the tech stock downturn on Wednesday, posting very solid gains. Quantum Computing Inc (NASDAQ:) jumped +25.38% at the close, while Rigetti Computing Inc (NASDAQ:) gained 11.39%.
These gains were prompted by comments made by Jensen Huang, CEO of NVIDIA Corporation (NASDAQ:), who said Wednesday morning that quantum computing technologies were approaching an “inflection point.”
As the head of the hardware company leading the artificial intelligence revolution, Jensen Huang holds significant influence in the tech sector. When it comes to emerging technologies such as quantum computing and autonomous vehicles, backing from Huang or Nvidia is often enough to trigger sharp increases in the valuations of companies involved.
Speaking Wednesday at Nvidia’s GTC conference in Paris, Mr. Huang stated that quantum computing was “approaching an inflection point,” comments that contributed to the sharp rise in quantum sector stocks.
This isn’t the first time NVIDIA’s CEO has impacted quantum computing stocks. Earlier this year, Huang caused a sharp drop in the sector by suggesting the technology would require more than two decades to become fully operational.
Since then, however, several major technological breakthroughs have been announced, and Huang has revised his outlook, much to the delight of quantum computing investors. The sector has been one of the most explosive performers so far this year.
The promise of quantum computing, which is vastly faster than traditional computing, is indeed exciting to investors, many of whom are convinced it will be the next major technological revolution after AI.
In fact, the two technologies are highly complementary: quantum computing could accelerate AI development and the path toward AGI, which in turn could help refine and improve quantum technologies.
What Potential for Quantum Computing Stocks After Their Powerful Rally?
However, it’s important to remember that quantum computing stocks remain high-risk investments—not only because the technology is still in development, but also because these stocks have already delivered staggering gains in recent months.
Quantum Computing is up +250% over the past 3 months, while Rigetti has gained 40% during the same period. IONQ Inc (NYSE:) and D-Wave Quantum Inc (NYSE:), two other “pure-play” quantum computing stocks popular with investors, have also gained +82% and +184%, respectively, over the last 3 months.
Nonetheless, it may still make sense to maintain modest exposure to what could be the next major technological revolution. In fact, analysts believe that some of these stocks still have solid upside potential, as shown in the image below from an InvestingPro Advanced Watchlist:
Source : InvestingPro
IonQ has a potential upside of +25.9% based on the analysts’ average target, while Rigetti could rise nearly 20%, and Quantum Computing 16%. D-Wave Quantum, on the other hand, is considered overvalued by more than 21%.
Beyond individual stocks, the Defiance Quantum ETF (NASDAQ:) is also worth considering for investors seeking diversified exposure.
It includes D-Wave Quantum, Rigetti, and IonQ, along with other diversified companies working on the development and application of quantum computing, such as Palantir (NASDAQ:), Alibaba (NYSE:), and Fujitsu.
In fact, this ETF approached its all-time high during Wednesday’s session, gaining over 40% since April’s lows.
Even so, focusing too heavily on a high-risk, forward-looking theme like quantum computing may not be wise. Investors looking to manage risk should consider companies with broader, more balanced profiles—even within the tech sector, which remains strong overall.
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Disclaimer: This article is written for informational purposes only. It is not intended to encourage the purchase of assets in any way, nor does it constitute a solicitation, offer, recommendation or suggestion to invest. I would like to remind you that all assets are evaluated from multiple perspectives and are highly risky, so any investment decision and the associated risk rests with the investor. We also do not provide any investment advisory services.
