Top Quantum Computing Stocks to Watch in January 2025

Quantum computing stocks are emerging as a high-risk, high-reward asset class, attracting traders with their potential for massive price swings. This sector has garnered attention due to advances in quantum computing technology and its growing overlap with other industries like AI, the semiconductors industry, and the software industry.

Driving the sector’s current momentum are breakthroughs in quantum processors, increased dependence between quantum computing and artificial intelligence, and the incoming tech-friendly Trump administration’s focus on climate-related infrastructure investing. With the recently announced $500 billion Stargate AI initiative, the broader infrastructure business is benefiting from renewed investor enthusiasm.

For traders, these stocks represent an intriguing combination of volatility and opportunity. While the long-term potential of quantum computing systems is significant, the sector’s near-term business trends are driven primarily by speculative interest. Traders must remain disciplined, focusing on short-term opportunities and managing company-specific risk. Below, we’ll explore the fundamentals of quantum computing, its connection to other industries, and the stocks currently on my radar.

My Top Quantum Computing Stocks to Watch

Here are six quantum computing stocks showing potential momentum this month:

Ticker	Company	Performance (YTD)
NASDAQ: QUBT	Quantum Computing Inc	– 38.89%
NASDAQ: RGTI	Rigetti Computing Inc	– 29.78%
NYSE: IONQ	IonQ	– 3.74%
NYSE: QBTS	D-Wave Quantum	– 35.02%
NASDAQ: LAES	Sealsq Corp	– 53.28%
NASDAQ: HOLO	MicroCloud Hologram Inc	– 72.24%

Jump ahead to see my quantum computing penny stock picks!

What Are Quantum Computing Stocks?

Quantum computing stocks are tied to companies that focus on developing quantum computing systems. Unlike classical computers, which process data in binary (1s and 0s), quantum computing technology uses quantum bits, or qubits, to process data in multiple states simultaneously. This capability allows quantum processors to solve problems exponentially faster than traditional systems, opening up new possibilities in industries such as logistics, healthcare, and energy markets.

However, many quantum computing systems are still in their infancy. Practical applications remain years or even decades away, making this sector highly speculative. Most companies rely on continuous funding, partnerships with established industry partners, and heavy capital expenditure to stay afloat. For traders, this often creates significant volatility, as stocks move more on news and sentiment than tangible revenue growth or asset class return.

It’s essential to approach this sector with caution. While the market capitalization of some quantum stocks has skyrocketed, this often comes without the business health to support it. Many of these companies have yet to demonstrate consistent annual return or meaningful capital returns, making them a speculative alternative investment.

If you’re adding quantum computing stocks to your watchlist, stay disciplined. Volatility creates opportunities, but only for those who know how to manage risk.

How Quantum Computing and AI Are Connected

The convergence between infrastructure for quantum computing and artificial intelligence is one of the sector’s most compelling narratives. AI applications demand immense computational power, which quantum computing technology is uniquely suited to provide. This dependence between quantum computing and AI is driving investments across industries like cloud computing services and edge chip manufacturers.

Check out my AI penny stock watchlist here!

Google, for example, is leveraging its cloud computing services to provide researchers with access to quantum computers, enabling more efficient development of AI algorithms. Similarly, chip stocks like Micron Technology are exploring the use of quantum processors to optimize AI workflows. These collaborations highlight the convergence between AI and quantum computing infrastructure strategy, creating opportunities for growth stocks in both fields.

Traders should focus on near-term business trends and avoid getting bogged down in technical details. For example, last year, a European company partnered with Duke University to explore quantum-AI synergies, which triggered notable price action across related stocks. Recognizing these types of market drivers is key to navigating trading sessions in this volatile space.

Major Players in Quantum Computing

While penny stocks often dominate the quantum conversation, large-cap tech companies are driving much of the real innovation behind the scenes. These industry leaders have the resources to shape the future of quantum technology.

Alphabet (NASDAQ: GOOGL)

Google’s Quantum AI team made headlines in 2019 with their announcement of achieving “quantum supremacy”—demonstrating a quantum computer’s ability to outperform classical supercomputers. Recently, they unveiled the Willow chip, which completed a calculation in five minutes that would have taken a classical computer billions of years.

Google’s focus is on superconducting qubits, a technology requiring extreme cold to reduce computational errors. While commercial applications are still years away, Google’s breakthroughs set the tone for the sector.

Nvidia (NASDAQ: NVDA)

Nvidia, best known as the leader in AI chips, also has its eye on quantum computing. While CEO Jensen Huang has been cautious, predicting quantum’s commercial viability is still 15 to 30 years out, Nvidia continues to invest in quantum research. Its potential role in quantum-AI synergies keeps traders watching closely.

Microsoft (NASDAQ: MSFT)

Microsoft is betting big on quantum cloud computing with its Azure Quantum platform, providing developers and researchers access to quantum hardware. The company is also making strides in quantum R&D, partnering with smaller players like IonQ and Rigetti Computing to bridge cutting-edge tech with its existing infrastructure.

Meta Platforms (NASDAQ: META)

Meta isn’t directly developing quantum computers, but its focus on quantum-resistant cryptography positions it as a key player in the industry’s security aspect. The company is investing in encryption systems designed to withstand the potential risks posed by quantum computing—a critical consideration for any company with sensitive data.

Penny Stocks in the Quantum Sector

The quantum computing penny stocks I’m watching in January 2025 are:

• NASDAQ: QUBT — Quantum Computing Inc. — The Speculative Leader with Big Moves and Big Risks
• NASDAQ: RGTI — Rigetti Computing — The AI-Quantum Crossover Stock
• NYSE: IONQ — IonQ — The Volatile Market Darling with a Short-Squeeze Setup
• NYSE: QBTS — D-Wave Quantum — The Niche Player Backed by Fresh Capital
• NASDAQ: LAES — Sealsq Corp — The Low-Float Runner Riding Quantum Hype
• NASDAQ: HOLO — MicroCloud Hologram Inc. — The Meme Stock Expanding Into Quantum

Remember — we’re traders, not investors. You need to keep that mentality in mind even if you’re a swing trader.

That means:

— Always having a trading plan — and sticking to it.

— If a stock drops below risk, you need to sell. Only losers hold onto losers.

There are some stocks on this watchlist that are day trade only. Holding onto these volatile small-cap stocks overnight can lead to some nasty surprises, like when a biotech penny stock does a new share offering to cash in on its gains.

Penny stocks are where the volatility—and the trading opportunity—is most intense in the quantum space. Here are some of the most notable players on my radar this month:

1. Quantum Computing Inc. (NASDAQ: QUBT) — The Speculative Leader with Big Moves and Big Risks

Quantum Computing QUBT has become a go-to name for traders seeking volatility in the quantum space. The stock’s breakout in late 2024 was driven by its first photonic chip order from its TFLN foundry, causing an explosive 1,800%* rally. This put QUBT on the map as a speculative leader in the sector, even as concerns about its fundamentals linger.

Then came the headwinds—like Nvidia CEO Jensen Huang’s public statement that practical quantum computing could still be decades away. These comments contributed to a sharp pullback, creating fresh trading opportunities for those who know how to manage risk.

Why It’s Hot:

• QUBT’s focus on photonic chip innovation ties it to a high-growth niche in the quantum market.
• Recent pullbacks have increased volatility, setting the stage for potential short-term bounce trades.

Key Insight:
This stock is a classic example of a speculative trade driven by momentum rather than fundamentals. Watch for support near recent lows and use tight stop losses to manage downside risk. The volatility here is high, but that’s what makes it such an appealing play for experienced traders.

2. Rigetti Computing Inc. (NASDAQ: RGTI) — The AI-Quantum Crossover Stock

Rigetti Computing is carving out a unique position in the quantum sector by combining quantum systems with cloud-based AI applications. Its partnerships with tech giants like Amazon and Google give it credibility in a field that’s still heavily reliant on speculative funding. The stock surged 42%* last week on news of Microsoft’s “Quantum Ready” initiative, which called for businesses to prepare for quantum-driven advancements.

But let’s be clear—this is still a risky penny stock. Rigetti has struggled with cash burn and faces significant challenges in scaling its technology.

Why It’s Hot:

• The company’s partnerships with Amazon and Google highlight its strategic importance in AI-quantum integration.
• Growing momentum around the quantum-AI synergy makes RGTI a compelling short-term play.

Key Insight:
Rigetti benefits from being in the right place at the right time, but traders need to tread carefully. Look for breakout patterns or oversold conditions as potential entry points. Avoid holding overnight unless you have a solid trading plan in place.

3. IonQ (NYSE: IONQ) — The Volatile Market Darling with a Short-Squeeze Setup

IonQ has been a standout performer in the quantum sector, riding high on speculation and investor enthusiasm. Its strong gains—nearly 400% over the past year—have made it a favorite among retail traders. But not everyone’s convinced. Notorious short seller Martin Shkreli recently called IonQ one of his “favorite shorts,” citing concerns over operational challenges and inflated valuation.

This combination of hype and skepticism makes IONQ a prime candidate for volatility—and possibly a short-squeeze scenario if short interest climbs too high.

Why It’s Hot:

• IONQ’s consistent growth has made it a flagship name in the quantum computing space.
• Heavy short interest could spark explosive price action if momentum shifts.

Key Insight:
Traders should monitor volume and short interest closely. Look for opportunities to trade potential squeezes or sell-offs during high-volatility sessions. As always, use disciplined setups and avoid chasing after big moves without a plan.

4. D-Wave Quantum (NYSE: QBTS) — The Niche Player Backed by Fresh Capital

D-Wave is focused on solving optimization problems, differentiating itself from competitors in the broader quantum space. The company recently raised $150 million through a share offering, bolstering its cash reserves but diluting shareholders in the process. While this injection of capital provides some breathing room, D-Wave remains highly speculative, relying on funding to fuel its growth.

The stock jumped 20% earlier this month on news tied to its funding efforts, creating short-term trading opportunities for momentum traders.

Why It’s Hot:

• D-Wave’s focus on optimization problems gives it a unique niche within the quantum sector.
• Recent funding news has reignited interest in the stock, driving volatility.

Key Insight:
This is a classic “news-driven trade.” Watch for volume spikes and technical patterns signaling a potential breakout. Keep position sizes small and avoid holding long-term, as dilution and funding reliance remain key risks.

5. Sealsq Corp (NASDAQ: LAES) — The Low-Float Runner Riding Quantum Hype

Sealsq has become one of the most explosive names in the quantum penny stock space. In December 2024, the stock spiked an incredible 2,700%* after announcing a partnership to develop quantum-computing chips with IC’ALPS. This low-float stock (just 15 million shares) is the epitome of a momentum-driven trade, with wild price swings and massive speculative interest.

Why It’s Hot:

• The partnership announcement in December 2024 catapulted LAES into the spotlight as a low-float quantum runner.
• Ongoing volatility creates opportunities for traders who can time their entries and exits.

Key Insight:
LAES thrives on hype and momentum, making it ideal for day traders and short-term swing traders. Be cautious of sharp pullbacks and always use tight risk management. The low float amplifies both the upside and downside potential.

6. MicroCloud Hologram Inc. (NASDAQ: HOLO) — The Meme Stock Expanding Into Quantum

MicroCloud Hologram is a penny stock that knows how to grab headlines. In December 2024, it announced plans to develop semiconductor quantum-qubit technology, marking its entry into the quantum computing sector. The stock spiked 530%* on the news before pulling back sharply, following the typical pattern of a low-float, news-driven runner.

With just 5.4 million shares in the float, HOLO is a prime candidate for dramatic price action, especially when demand surges.

Why It’s Hot:

• HOLO’s December rally showcased its potential as a low-float momentum play.
• The stock is consolidating, setting up for either a breakout or another sharp decline.

Key Insight:
Keep a close eye on volume and chart patterns for signs of a renewed breakout. With its tiny float and history of big moves, HOLO is a speculative trader’s dream—but only for those who manage risk effectively.

* Past performance does not indicate future results.

Economic Impact of Quantum Computing

Quantum computing systems hold the potential to reshape industries across the globe. From optimizing supply chains to accelerating drug discovery, the technology could deliver measurable benefits in equity markets, energy markets, and even cryptocurrency markets.

For example, advancements in quantum systems could reduce the capital expenditure required for climate-related infrastructure investing by solving complex modeling problems faster and more efficiently. Additionally, companies with access to quantum computers may see improved cumulative returns in areas like logistics, healthcare, and the software industry.

However, the economic impact of quantum computing is not immediate. The technology’s high capital expenditure and slow commercialization mean its impact on revenue growth and annual return remains limited for now. This creates a speculative environment where investor expectations for activity often outweigh the sector’s actual business health.

Investing in Quantum Computing Stocks

Investing in quantum computing stocks is not for the faint of heart. Most companies in this sector lack the earnings growth rates or book ratios that traditional investors look for. Instead, these stocks thrive on speculative interest, relying on momentum from near-term business trends rather than fundamental business combinations.

To mitigate risk, traders should focus on diversified exposure to related sectors, such as the semiconductors industry or the edge chip manufacturer space. Chip stocks, for instance, offer both broad exposure to quantum computing technology and more stable earnings growth rates.

Tools like Zacks Investment Research and business intelligence platforms can help traders identify growth stocks with potential, but risk management remains critical. Stick to your trading plan, monitor average price targets and book ratios, and avoid getting swept up in hype-driven trading days.

If you’re considering trading or investing in quantum stocks, focus on:

• Volatility: Look for price action patterns tied to news or hype.
• Risk management: Trade with discipline, using tight stop losses.
• Sector trends: Pay attention to announcements from leading companies and government initiatives.

Potential Risks and Concerns

Trading quantum computing stocks comes with unique challenges. These include company-specific risk, such as cash burn, reliance on speculative funding, and unproven business models.

Another significant concern is valuation. Many quantum stocks trade at inflated prices relative to their fundamentals. For example, IonQ boasts a market capitalization exceeding $8 billion, despite generating only $40 million in annual revenue. These discrepancies highlight the need to closely monitor metrics like the average PEG ratio, expense ratio, and Zacks Industry Rank.

Short interest is another factor to watch. Companies like Quantum Computing Inc. have been targeted by short sellers, resulting in sharp sell-offs and increased volatility. While this can create opportunities for well-timed entries, it also underscores the importance of managing expectations for activity.

Cash Burn and Dilution

Many quantum companies are operating at a loss, burning through cash to fund their research. For example, D-Wave Quantum (NYSE: QBTS) recently raised $150 million through a share offering, diluting existing shareholders to stay afloat. This is a common theme among smaller quantum stocks, and traders should be cautious of companies with unsustainable cash flow.

Short Reports

Short sellers are increasingly targeting quantum stocks, accusing some companies of overhyping their progress or even engaging in fraudulent practices. For example, Quantum Computing Inc. (NASDAQ: QUBT) was the subject of a short report earlier this month, which accused the company of issuing misleading press releases to inflate its stock price.

While these reports can cause sharp sell-offs, they also create opportunities for short squeezes when short interest becomes excessive. As always, approach these situations with caution.

Valuation Concerns

Quantum computing stocks often trade at inflated valuations relative to their fundamentals. For instance, IonQ (NYSE: IONQ) has a market cap of over $8 billion despite generating just $40 million in annual revenue. These sky-high valuations make the sector vulnerable to corrections, especially if investor sentiment shifts.

Applications of Quantum Computing

The promise of quantum computing lies in its ability to tackle complex problems across multiple industries. Here are a few key areas where quantum technology could have the biggest impact:

Machine Learning and AI

Quantum computers could revolutionize machine learning by analyzing massive datasets at unprecedented speeds. This would enable the development of faster, more accurate AI algorithms, unlocking new possibilities in areas like predictive analytics and autonomous vehicles.

Cryptography

One of the most discussed applications of quantum computing is its ability to break current encryption methods. While this poses a significant threat to data security, it’s also driving innovation in quantum-resistant cryptography, creating opportunities for companies specializing in cybersecurity.

Drug Discovery

In healthcare, quantum computing could accelerate drug discovery by simulating molecular structures more efficiently. This has the potential to significantly reduce the time and cost of developing new treatments, making it one of the most exciting applications of the technology.

Final Thoughts

Quantum computing is one of the most exciting and speculative asset classes in the market today. Its potential to disrupt industries like healthcare, energy markets, and the cryptocurrency markets is immense, but the technology remains in its early stages.

This is a hot sector tailor-made for traders who are prepared. Quantum computing penny stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention to the first days of this possibly historic bull market.

If you want to know what I’m looking for—check out my free webinar here!

How are you approaching the opportunity that quantum stocks have to offer—let me know in the comments!

FAQs About Quantum Computing Stocks

What is quantum computing?

Quantum computing is an advanced technology that uses the principles of quantum mechanics to process information. Unlike classical computers, which rely on binary bits (1s and 0s), quantum computing systems use quantum bits, or qubits, which can exist in multiple states simultaneously. This allows quantum processors to perform complex calculations exponentially faster than traditional systems.

Quantum computing research has applications in industries like logistics, healthcare, and cybersecurity, making it an increasingly important field in the investment community. Companies like Atos Quantum and Google Cloud are pushing the boundaries of this technology, helping traders and investors monitor its progress.

What are the average returns for quantum computing stocks?

The average returns for quantum computing stocks are highly volatile due to the sector’s speculative nature and flat activity environment. Many quantum stocks experience rapid market price changes based on news, partnerships, or breakthroughs in quantum computing research.

While some stocks, like Quantum Computing Inc. (NASDAQ: QUBT), have posted triple-digit or even quadruple-digit total return over short periods, these gains are not reflective of consistent revenue growth or long-term stability. Traders should focus on short-term opportunities while practicing strong risk management to protect against sharp pullbacks.

What industries will quantum computing disrupt?

Quantum computing technology has the potential to disrupt multiple industries, including the software industry, semiconductors industry, and logistics. It is also expected to play a transformative role in healthcare by accelerating drug discovery and in finance by improving portfolio optimization and risk assessment.

Within these sectors, individual industries like energy grids and climate-related infrastructure will also benefit from quantum’s ability to solve complex problems more efficiently. As the technology matures, expect broader adoption and increased interest from international business and finance leaders.

What are the risks of investing in quantum computing stocks?

Investing in quantum computing stocks comes with several risks, including flat activity environments, inflated market prices, and significant company-specific risk. Many quantum companies are years away from meaningful revenue growth and rely heavily on speculative funding to sustain operations.

Additionally, valuation metrics like expense ratio, book ratios, and average PEG ratio often indicate inflated prices relative to the company’s fundamentals. This makes quantum stocks better suited for short-term trading rather than long-term investing.

Traders should remain cautious, focusing on momentum-driven opportunities to evaluate near-term business trends. Always practice disciplined risk management to protect against downside risk in this volatile sector.