Quantum Computing Stocks Get Buy Ratings

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•  16 Jan 2026
 

•   IONQ  
   
  -3.70%
•   QBTS  
   
  -13.06%
•   QUBT  
   
  -8.70%
•   RGTI  
   
  -10.81%

Quantum computing stocks have surged over 8-fold in two years, and analysts at Rosenblatt are doubling down with fresh buy ratings on four names in the sector. The question facing traders now is whether there's room left to run after such explosive gains, or if we're chasing momentum at the wrong time.

These companies are loss-making and the technology is still relatively immature. Yet capital continues flowing into the sector at an accelerating pace, funding the research and development needed to push toward commercial viability. The prevailing view among analysts is that quantum computing represents the next major technological revolution, similar to what artificial intelligence has become today. Coverage from investment banks is expanding and retail investor interest is growing alongside institutional attention.

Rosenblatt initiated coverage on $RGTI Rigetti Computing, $QUBT Quantum Computing, $IONQ IonQ, and $QBTS D-Wave Quantum with buy ratings across the board. These four stocks represent different approaches to quantum technology, but all face the same fundamental challenge: proving they can transition from experimental systems to commercially viable products that generate sustainable revenue.

It's worth noting that among the quantum players, nobody knows for certain which companies will survive and which will lead the revolution if it materializes. Right now, Google and IBM dominate as the established giants, while roughly five to fifteen smaller companies position themselves at the technological frontier. The risk here is real. Not all of these names will make it, and identifying the winners at this stage requires both technical understanding and a healthy tolerance for uncertainty.

Starting with $RGTI, Rigetti disappointed parts of the market last week by pushing back the timeline for its Cepheus-1-108Q system from late 2025 to the end of the first quarter 2026. The primary reason cited was improvement in quantum operation accuracy metrics, which are essential for developing systems that work reliably outside laboratory environments. These kinds of delays are common in the sector and should be expected by anyone investing here.

Rosenblatt highlights Rigetti strengths, particularly its in-house manufacturing of processors at a facility in Fremont, California, and its use of superconducting transmons that are less sensitive to electrical variations. The approach involves working with smaller chips rather than one massive chip, which makes error correction easier and enables better scaling. Rosenblatt believes this gives Rigetti an advantage over competitors struggling to build large systems without errors. From a business perspective, Rigetti has a solid installed base among government and research institutions, providing stability while commercial customers are still evaluating the technology. However, 90% of revenue comes from government sources, creating dependency on public budgets. Rosenblatt expects continued losses and negative cash flow through 2031, but believes the company will emerge as a sector leader around 2030 when its quantum advantage becomes demonstrated through faster performance and real-world capabilities. The stock trades at $24.70 with a $40 price target, implying 62% upside.

Moving to $QUBT, Quantum Computing has faced sustained criticism over disappointing technological performance. There have also been questions raised about data reliability. However, Rosenblatt believes the company is making progress in the market and that its major acquisition will add capabilities both financially and technologically. Rosenblatt expects the stock to rise 80% over the next year, setting a $22 price target while shares currently trade at $12.20.

The revenues are minimal, just hundreds of thousands of dollars last year. But the acquisition of Luminar Semiconductor is expected to add $25 million in annual revenue. It appears the company will operate with a dual-headed structure, and the synergy benefits remain uncertain. Still, Rosenblatt remains optimistic, pointing to the products like random number generators and optimization computers that provide early-stage revenue. Additionally, they emphasize that the company holds $1.6 billion in cash and was in the interesting position before the acquisition of earning more in interest income than it spent on operations.

For $IONQ and $QBTS, Rosenblatt buy ratings reflect similar confidence in the sector long-term trajectory, though each company faces its own technical and commercial challenges. IonQ has been working on trapped-ion technology, which offers certain advantages in qubit stability but faces scaling challenges. D-Wave focuses on quantum annealing, a different approach than gate-based quantum computing, which has found some early commercial applications in optimization problems but remains limited in scope compared to universal quantum computers.

The fundamental thesis across these four stocks is that quantum computing will eventually deliver transformative capabilities in cryptography, drug discovery, financial modeling, and artificial intelligence. The timeline remains uncertain, and the path from laboratory demonstrations to commercial products that generate meaningful profits is long and expensive. Rosenblatt price targets suggest substantial upside, but traders need to weigh these projections against the reality that most analysts covering emerging technology sectors tend toward optimism, and that quantum computing specifically has seen multiple false starts over the past decade.

What makes this moment different is the increasing involvement of major technology companies and the scale of capital being deployed. When Google, IBM, Microsoft, and Amazon are all investing heavily in quantum research and building their own systems, it validates the sector potential even if the timeline to profitability remains unclear. The question is whether the smaller pure-play companies can compete with these giants or if they'll end up as acquisition targets or footnotes in the quantum revolution.

From a trading perspective, the volatility in quantum stocks creates opportunities but also substantial risk. These stocks can move 10% or more in a single session on relatively minor news or analyst comments. Position sizing becomes critical, and using these as speculative holdings within a diversified portfolio makes more sense than concentrating capital here. The 8-fold gain over two years demonstrates the upside potential, but the path has been far from linear, with sharp drawdowns along the way that tested investor conviction.

Rosenblatt bullish stance adds credibility to the sector, but traders should approach these recommendations with clear eyes about the risks involved. We're talking about companies that won't be profitable for years, operating in a field where the technology is still being proven, competing against both each other and well-funded corporate giants. The 62% to 80% upside targets look attractive on paper, but they come with execution risk, technology risk, competitive risk, and funding risk.

The honest assessment is that quantum computing stocks represent a high-risk, high-reward proposition. If the technology delivers on its promise and these companies execute successfully, early investors could see exceptional returns. If the timeline extends further than expected, if technical hurdles prove insurmountable, or if the giants dominate and leave no room for smaller players, these stocks could face significant downside. Anyone considering positions here should do so with capital they can afford to lose and a time horizon measured in years, not months.

For those willing to accept that risk profile, Rosenblatt analysis provides a framework for evaluating which names might offer the best risk-reward balance in this emerging sector.

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