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Introduction

The quantum computing (QC) industry is a rapidly evolving and expanding field that is expected to experience a compound annual growth rate (CAGR) of 36.9% between now and 2030 with an estimated 5,000 quantum computers operational by then.

What Is Quantum Computing?

The race is on for companies to radically upgrade the computing power of their models and that’s where QC comes in. Computers currently operate on a binary system that is equipped with chips that use bits to perform computations but these bits can only show a value of zero or one and, as a result, it takes a lot of zeros and ones arranged in specific orders for a computer to do anything. (Check out this video on Quantum Computing: 4 Things You Need to Know.)

QCs, however, operate with subatomic particles that use quantum bits (qubits) to allow the particles to exist simultaneously in more than one state which increases processing speeds dramatically – and quicker processing speeds mean that computers can tackle more complex problems, which will improve predictive analytics, pattern recognition and complex optimization tasks.

Building a QC is extremely expensive, complex and massive, and needs to be kept in stable laboratory conditions, and cooled to nearly absolute zero (-459 degrees Fahrenheit) so, while there are close to 200 companies whose primary focus is on QC Software, according to The Quantum Insider, just over 20 companies worldwide are working on QC Processors and Chips.

Our Pure-Play Quantum Computing Stocks Portfolio

Only 4 companies are researching and developing quantum computers exclusive of anything else and below is a description of each, their current market capitalizations, and their performances so far in October (October 17th), in descending order, and YTD, and the catalysts contributing to the changes in their stock prices:

1. Rigetti Computing (RGTI): UP 55.7% MTD; UP 203.9% YTD
   • Focus: specializes in superconducting qubit technology and has developed a suite of software tools and algorithms for programming and simulating quantum computations
   • Market Capitalization: $15.0B
   • Catalysts:
     • received $5.7M in Novera system orders and a new U.S. Air Force Research Laboratory contract which signaled Rigetti’s growing traction in hybrid quantum-classical solutions; and marking a shift from pure R&D to commercial deployment, boosting investor confidence in revenue visibility;
     • unveiled its Cepheus-1-36Q quantum system, which halved error rates compared to previous models, which advances its roadmap toward a 100-qubit architecture, and positioning RGTI as a serious contender in scalable quantum computing;
     • entered into a collaboration with C-DAC in India which has expanded Rigetti’s presence in Asia’s quantum ecosystem, opening doors to regional government and enterprise clients, and increasing the size of its  addressable market.
2. D-Wave Computing (QBTS): UP 55.1% MTD; UP 356.3% YTD 
   • Focus: specializes in quantum annealing technology
   • Market Capitalization: $13.1B
   • Catalyst(s):
     • won an innovation award, boosting its credibility and visibility among institutional investors;
     • secured a significant system order, marking a shift from R&D to commercial deployment validating its annealing quantum technology and revenue model;
     • highlighted its partnership with USC and cutting-edge tech, reinforcing its leadership in quantum research; and
     • demonstrated real-world utility in a joint project with North Wales Police by optimizing vehicle placements for faster response times showcasing hybrid quantum applications in public safety.
3. IonQ (IONQ): UP 2.3% MTD; UP 50.2% YTD 
   • Focus: building a network of quantum computers accessible via the cloud using trapped-ion technology in its processing units which relies on suspending ions in space using electromagnetic fields, and transmitting information through the movement of those ions in a “shared trap”.
   • Market Capitalization: $19.8B
   • Catalysts:
     • announced a major advancement in quantum chemistry simulations using its QC-AFQMC algorithm, which could accelerate carbon capture and materials design which reinforced IonQ’s leadership in real-world quantum applications, especially in climate tech and industrial R&D;
     • partnered with a leading global automaker to validate its quantum chemistry models using real-world data and this collaboration signaled commercial traction beyond academia and government, boosting investor confidence;
     • raised $2 billion in October, significantly strengthening its balance sheet and enabling aggressive scaling;
     • projected 2025 earnings growth of 37.8% and revenue growth of 115.1% compared to 2024, driven by expanding enterprise and government contracts; and
     • acquired Oxford Ionics which enhanced IonQ’s intellectual property in trapped-ion systems, a key architecture for fault-tolerant quantum computing, making IonQ the most advanced gate-based quantum player, outpacing peers like Rigetti and D-Wave in scalability and commercialization.
4. Quantum Computing Inc. (QUBT): DOWN 0.4% MTD; UP 10.8% YTD
   • Focus: specializes in photonic qubits that offer a number of key advantages over trapped ions or superconducting qubits
   • Market Capitalization: $4.1B
   • Catalysts: 
     • faced an unexpected leadership shakeup, which raised concerns about strategic continuity and execution risk;
     • the messaging around its quantum roadmap and partnerships were criticized as inconsistent and potentially misleading, contributing to a looming class-action lawsuit and, as such, didn’t lift QUBT in the broader quantum rally;
     • plans to sell 37.18 million shares triggered fears of dilution and weakened investor sentiment;
     • insider activity showed over 1.15 million shares were sold in the past 90 days, further eroding confidence; and
     • while IonQ, Rigetti, and D-Wave surged on commercial wins and AI-linked breakthroughs, QUBT’s narrative remained anchored in speculative photonic and chip-level ambitions without clear traction.

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