Top Quantum Computing Stocks to Watch in January 2025

Quantum computing stocks have been the market’s hottest sector over the past few months, sparked by synergy with AI and hype not seen since the AI sector lit up the market in 2023.

There is also news — both recent breakthroughs and incoming President Donald Trump’s tech-friendly administration. Trump’s $500 billion Stargate AI infrastructure project, backed by Nvidia, Microsoft, and Oracle, has ignited new momentum in the broader tech industry, with quantum computing stocks surging as a result.

Jump ahead to my quantum computing penny stock picks!

My top quantum computing stocks to watch are:

What Are Quantum Computing Stocks?

Quantum computing stocks represent companies working to develop computers that operate on the principles of quantum mechanics. Unlike classical computers, which use bits to process information as 1s or 0s, quantum computers use quantum bits, or qubits, which can exist in multiple states simultaneously. This allows quantum computers to solve problems that are currently impossible for even the most powerful classical systems.

The potential applications are staggering: drug discovery, advanced cryptography, and machine learning are just a few areas that could benefit from quantum technology. But here’s the reality check: most quantum computing systems are still years, if not decades, away from practical commercial use.

For traders, this means one thing—volatility. Stocks like Rigetti Computing (NASDAQ: RGTI), Quantum Computing Inc. (NASDAQ: QUBT), and IonQ (NASDAQ: IONQ) have posted massive gains. Even though they are down so far this year, QUBT and RGTI are still up more than 1,000%* over the past few months.

However, quantum computing remains highly experimental, and most companies in this space are far from generating meaningful revenue. (Also, some might be scams.) For traders, the focus should be on taking advantage of price action rather than betting on long-term narratives.

Over my 20-plus years of trading, I’ve seen hot sectors like quantum computing come and go. Read on for the reason that I think quantum computing is special—and why the six stocks I’m featuring have earned a spot on my watchlist!

How Is Quantum Computing Related to Artificial Intelligence?

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The relationship between quantum computing and artificial intelligence (AI) lies in their shared demand for immense computational power. Quantum computers can process massive datasets and solve complex problems exponentially faster than traditional classical computers, making them a potential game-changer for AI-driven technologies like machine learning, predictive analytics, and advanced simulations. This dependence between quantum computing and AI opens up unique opportunities for traders to watch as both industries grow and overlap.

Check out my AI penny stock watchlist here!

For example, companies like Google are leveraging their Google Cloud infrastructure to make quantum computing systems more accessible to researchers and businesses, enabling faster development of AI algorithms. Similarly, Micron Technology, traditionally known for its dominance in the semiconductors industry, is exploring quantum-enabled chips that could redefine the software industry and cloud-based AI services. These connections highlight the growing convergence between infrastructure in quantum computing and AI, where breakthroughs in one field could accelerate growth in the other.

As I teach my students, you don’t need to fully understand the science behind the buzzwords to profit from market trends. Instead, focus on the near-term business trends and watch for price action that reflects investor interest in the sector. Just last year, a quantum-AI partnership involving Duke University and Atos Quantum, a European company, caused a notable spike in related stocks. This illustrates how traders who understand the infrastructure strategy behind these innovations can better position themselves for short-term opportunities.

Major Players in Quantum Computing

While the hype around penny stocks often takes center stage, established tech giants are quietly leading the quantum revolution. These companies are investing billions into quantum computing research and shaping the future of this technology.

Alphabet (NASDAQ: GOOGL) — The Willow Chip Maker

Google has been at the forefront of quantum computing since its Quantum AI team achieved “quantum supremacy” in 2019. Last month, Google unveiled its new Willow chip, which performed a calculation in five minutes that would take traditional supercomputers 10 septillion years to complete.

The company’s approach focuses on superconducting qubits, a technology that leverages extreme cold to reduce computational errors. While practical applications are still years away, Google’s breakthroughs continue to drive the narrative in this sector.

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Nvidia (NASDAQ: NVDA) — The AI Giant With the Quantum-Skeptical CEO

Nvidia, the undisputed leader in AI chips, is also a major player in quantum computing research. However, CEO Jensen Huang recently threw cold water on the hype, predicting that useful quantum computers are 15 to 30 years away.

Congrats to all #QuantumComputing short sellers, longs I warned you last night when the $NVDA CEO speaks out, people listen. Now $RGTI down 47%, $QUBT down 44%, $IONQ down 42%, $QMCO down 32%, this has been a LONG time coming, classic https://t.co/46W8tDB2QL pattern crazy right? https://t.co/eGPBLtgp1i

— Timothy Sykes (@timothysykes) January 8, 2025

Despite Huang’s comments, Nvidia has a vested interest in quantum computing, as the technology could one day complement its AI business. Traders should keep an eye on Nvidia’s moves in this space, as its announcements often influence broader sentiment in the quantum sector.

Microsoft (NASDAQ: MSFT) — The Azure Quantum Platform Developer

Microsoft is positioning itself as a leader in quantum cloud computing with its Azure Quantum platform, which provides access to quantum hardware and simulators. It has also announced its own quantum breakthroughs. Its partnerships with quantum penny stocks like IONQ and RGTI give it exposure to emerging technologies, while its established presence in cloud computing ensures a steady stream of revenue as quantum adoption grows.

Microsoft’s Quantum Ready initiative, aimed at helping businesses prepare for a quantum future, is another sign of its commitment to this space. Traders should watch how Microsoft balances its short-term cloud revenue with its long-term quantum ambitions.

Meta Platforms (NASDAQ: META) — The Quantum-Resistant Cryptography Leader

Meta isn’t your typical quantum computing stock, but the company has emerged as a key player in preparing for the “Quantum Apocalypse.” With quantum computing posing a long-term threat to cryptographic systems, Meta is taking proactive steps to secure its infrastructure against future vulnerabilities.

Meta’s post-quantum readiness strategy is focused on deploying quantum-resistant cryptography, using hybrid encryption algorithms like Kyber768 to protect its internal communications. The company’s investment in quantum computing research is not just about innovation—it’s about safeguarding its platforms against future quantum-based attacks.

Top Quantum Computing Penny Stocks to Watch in January 2025

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

• NASDAQ: QUBT — Quantum Computing Inc. — The Sector Leader on a Pullback
• NASDAQ: RGTI — Rigetti Computing — The AI-Quantum Synergy Play
• NYSE: IONQ — IonQ — Martin Shkreli’s Favorite Quantum Short
• NYSE: QBTS — D-Wave Quantum — The New Share Offering Quantum Computing Penny Stock
• NASDAQ: LAES — Sealsq Corp — The Semiconductor and Quantum Computing Penny Stock
• NASDAQ: HOLO — MicroCloud Hologram Inc. — The AI Meme Penny Stock Expanding Into Quantum

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

Penny stocks in the quantum computing sector are some of the most volatile and speculative plays on the market. These stocks thrive on hype and momentum, offering massive short-term gains for traders who know how to spot the right setups.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Quantum Computing Inc. (NASDAQ: QUBT) — The Sector Leader on a Pullback

Quantum Computing Inc. is a penny stock that skyrocketed 1,800%* in late 2024 after landing its first photonic chip order. The hype drove its market cap to $1.3 billion, but the company’s fundamentals tell a different story. With only $100,000 in quarterly revenue and a history of burning through cash, QUBT is more about speculation than substance, which was enough…

Until Nvidia CEO Jensen Huang said that practical quantum computing is decades away.

This could create opportunities for short-term bounces, but be cautious. QUBT’s lack of meaningful revenue and a “Strong Sell” rating from several analysts make it a risky play.

Rigetti Computing (NASDAQ: RGTI) — The AI-Quantum Synergy Play

Rigetti Computing focuses on integrating quantum processors into cloud computing services, making it one of the few companies connecting quantum and AI technologies. The stock surged 42%* last week following Microsoft’s Quantum Ready announcement but remains volatile.

Despite all of that, it’s still a shady penny stock that you should be very, very careful trading…

With partnerships involving Amazon and Google, Rigetti has strong industry ties, but its financials are concerning. The company is burning cash and relies heavily on speculative funding. Look for breakout patterns or oversold conditions for potential trades.

IonQ (NYSE: IONQ) — Martin Shkreli’s Favorite Quantum Short

IonQ has been a standout performer in the quantum sector, but not everyone is convinced. Former hedge fund manager Martin Shkreli, aka the “Pharma Bro,” recently called IonQ one of the best shorts of his career, citing operational issues with its quantum systems.

Despite its challenges, IonQ has posted impressive gains, up nearly 400%* over the past year. Traders should watch for signs of overextension or blowoff tops, which could lure in the shorts that smarter traders than Shkreli know are the real prize in the market.

Here’s why shorts should be careful.

D-Wave Quantum (NYSE: QBTS) — The New Share Offering Quantum Computing Penny Stock

D-Wave recently raised $150 million through a share offering, boosting its cash reserves to $320 million. The stock jumped 20% earlier this month, but its reliance on funding raises concerns about long-term sustainability.

D-Wave focuses on solving optimization problems, which sets it apart from competitors. However, the stock’s speculative nature makes it best suited for short-term trades tied to news or sector momentum.

Sealsq Corp (NASDAQ: LAES) — The Semiconductor and Quantum Computing Penny Stock

LAES has become a hot stock in the quantum computing penny stock space, thanks to its foray into quantum computing technology and partnerships in the semiconductor industry. The stock spiked an incredible 2,700%* in December 2024 after announcing its partnership with IC’ALPS to develop quantum-computing chips. This is a classic low-float runner, with only 15 million shares available—a setup that often leads to explosive volatility.

MAJOR props to anyone in my https://t.co/NFpygldTfO newsletter who held $LAES all week from my initial buys last Friday in the $2.20s and now it's $10.30!!!

With hot #quantum plays like $QUBT $QMCO $QBTS and now $QSI too you don't have to be so impatient as uptight toxic short… pic.twitter.com/2R4WqtDSRF

— Timothy Sykes (@timothysykes) December 27, 2024

The momentum hasn’t entirely faded. LAES is still riding high on its December gains, and its market price remains elevated despite some pullbacks. Stocks with this kind of low float often exhibit unpredictable price action, giving traders multiple chances to capitalize on short-term moves.

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

HOLO rode the quantum momentum in December 2024 when it announced the development of semiconductor quantum-qubit technology, marking its entry into the quantum computing sector. Known for its big moves on questionable news, HOLO’s low float (just 5.4 million shares) amplifies its potential for dramatic price action when demand surges.

HOLO spiked 530%* last month but has since pulled back. Keep an eye on volume spikes and chart patterns for potential setups, but don’t hold overnight unless you have a solid plan.

Economic Impact of Quantum Computing

Quantum computing has the potential to transform almost as many industries as AI. As companies gain access to quantum computers, they can tackle problems that classical computers couldn’t solve in billions of years, such as simulating molecular structures for drug discovery. The ability to solve these problems faster and more effectively could lead to significant cost savings and productivity gains across sectors like healthcare, finance, and manufacturing.

For the investment community, quantum computing represents a big upside and very speculative asset class. The anticipated convergence of quantum computing and artificial intelligence could unlock new revenue streams for companies positioned to capitalize on the innovation. However, the high capital expenditure required for quantum processors and infrastructure poses a challenge, especially for smaller firms (again, some of which might be scams). The sector’s growth will depend heavily on partnerships with established players and government funding initiatives like Trump’s Stargate project.

Quantum computing’s broader economic impact remains tied to commercialization. While the technology holds incredible promise, many of the near-term applications are limited to research and experimental applications. This creates a speculative environment where the potential for average returns hinges more on market sentiment than actual revenue growth—the revenue isn’t there. All that said, in my experience this type of hot sector play is better served by focusing on short-term volatility rather than long-term investment strategies.

Investing in Quantum Computing Stocks

Investing in quantum computing stocks is a high-risk, high-reward strategy—one I do not recommend. Trading these stocks on the other hand can lead to big returns.

While quantum computing has the potential to disrupt industries like cryptography, drug discovery, and even climate-related infrastructure investing, its average PEG ratio often signals inflated valuations due to speculative excitement. For traders, this means focusing on growth stocks with strong earnings growth rates and avoiding those that rely too heavily on hype rather than execution.

When figuring out where quantum stocks fit into your trading strategy, consider the broader equity market and related industries like chip stocks and edge chip manufacturers. Some companies, such as Micron Technology, are expanding their roles as industry partners in quantum development, while others are pushing the boundaries of complementary invеstmеnts in AI and cybersecurity. This synergy attracts institutional investors, who rely on more fundamental measures of value like business intelligence tools that analyze capital returns and cumulativе rеturns across both domestic and international markets.

As someone who has been trading and teaching for decades, I’ve seen how crappy penny stocks can become “real” stocks from these business combinations and partnerships. Analysts like Zacks Investment Research often highlight the book ratios and expense ratios of high-risk sectors like quantum computing, which can provide valuable insights for traders evaluating short-term price spikes.

Always stay vigilant when trading penny stocks with this type of volatility, and never let FOMO cloud your judgment. Success comes from understanding expectations and executing your strategy with discipline.

Potential Risks and Concerns

Trading quantum computing stocks comes with unique risks. The sector is heavily influenced by speculation, and most companies are years away from generating meaningful profits. Company-specific risks like cash burn, regulatory hurdles, and unproven business models are compounded by the broader market volatility that defines penny stocks.

Short Reports

Short reports have become a common occurrence in the quantum sector. For example, QUBT was labeled a “rampant fraud” by Capybara Research in their mid-January short report, accusing the company of fabricating revenue and issuing misleading press releases. Short sellers like these can drive sudden sell-offs, creating sharp price drops that can wipe out traders who aren’t paying attention.

The takeaway? Don’t trust the hype without doing your homework. Always consider the possibility of a stock being targeted by short sellers, especially if the company’s fundamentals don’t add up.

Of course, shorts piling in can be a good thing.

Bubble in Quantum Stock Valuations

Quantum computing stocks are trading at inflated valuations relative to their actual business health. Here’s an example from a company that actually makes money—IONQ has a market cap exceeding $8 billion despite only generating $40 million in annual revenue. QUBT has a market cap above $1 billion, and its last quarter generated only $100k in revenue! This disconnect between market capitalization and financial performance makes the sector ripe for a potential correction, especially if sentiment shifts.

Traders should approach these stocks with caution, focusing on short-term setups rather than getting caught up in the hype. If a stock runs up too fast without solid news to back it up, it’s usually a sign that a pullback is coming.

Market Volatility

Quantum stocks thrive on volatility, but that’s a double-edged sword. While it creates opportunities for quick gains, it also amplifies the risk of large losses. Stocks like RGTI and QBTS have seen massive intraday swings, often tied to vague announcements or speculative buying.

To manage this risk, stick to disciplined trading setups and avoid chasing breakouts. Always cut losses quickly, and don’t hold overnight unless you’re prepared for the unexpected.

Applications of Quantum Computing

The real promise of quantum computing lies in its applications. While these technologies are still in development, their potential to solve complex problems has massive implications for various industries.

Machine Learning

Quantum computing could revolutionize machine learning by processing large datasets more efficiently than classical systems. This would enable faster and more accurate AI models, opening new possibilities in areas like predictive analytics and natural language processing. For companies like Nvidia and Microsoft, this convergence between AI and quantum computing could create entirely new markets.

Artificial Intelligence

The combination of AI and quantum computing is one of the most exciting intersections in tech. Quantum computers could optimize AI algorithms, making them more efficient and reducing energy costs. This has the potential to drive advancements in fields like autonomous vehicles, healthcare diagnostics, and financial modeling.

For traders, the crossover between these two technologies is a key development to watch. Stocks like RGTI and IONQ are already leveraging this angle to attract speculative interest, making them prime candidates for short-term trades.

Cryptography

One of the most well-known applications of quantum computing is in cryptography. Quantum computers could potentially break current encryption methods, posing a significant threat to data security. This has led to a push for post-quantum cryptography solutions, with companies like Meta investing heavily in developing new encryption standards.

The stakes are high, and the race to secure quantum-proof encryption is creating opportunities for cybersecurity-focused quantum stocks like LAES. For traders, this niche within the quantum sector offers unique opportunities tied to regulatory developments and technological advancements.

Future Trends in Quantum Computing

The quantum computing sector is still in its early stages, but several trends are shaping its future. As the technology matures, expect to see increased industry partnerships, government funding, and corporate investments. Trump’s Stargate project is just one example of how public and private sectors are coming together to drive innovation in this space.

Another key trend is the convergence between quantum computing and AI. Companies like Nvidia and Google are already exploring how these technologies can complement each other, creating new use cases and expanding the market potential. This could lead to breakthroughs in fields like climate modeling, logistics optimization, and personalized medicine.

However, the timeline for commercial quantum computing remains uncertain. Most experts agree that practical applications are still at least a decade away. In the meantime, traders should focus on the short-term opportunities created by speculative momentum and news-driven spikes.

Key Takeaways

Quantum computing is one of the most exciting and speculative sectors in the market today. With its potential to revolutionize industries like AI, cryptography, and drug discovery, it’s no wonder that quantum stocks are attracting so much attention.

While the technology’s long-term potential is undeniable, the real opportunities for traders lie in the short-term price action. The volatility, inflated valuations, and frequent short reports make it a high-risk environment. To succeed, traders must stay disciplined, stick to their setups, and avoid getting caught up in the hype.

This is a market 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!

Quantum Computing Stocks FAQ

​​What is the best stock for quantum computing?

There’s no definitive “best” quantum computing stock, as the individual industry is still in its infancy, making every stock a high-risk, high-reward play. That said, Google’s parent company, Alphabet, continues to lead with its Willow quantum chip, which has achieved record-breaking breakthroughs in computational speed. For traders looking for a more speculative angle, Quantum Computing Inc. (NASDAQ: QUBT) and IonQ Inc. (NASDAQ: IONQ) are also worth monitoring. These companies are focused on cutting-edge infrastructure business that has the potential to reshape industries like AI and cryptography.

When choosing a quantum computing stock, focus on key metrics like annual return, market price, and average price target to assess a stock’s volatility and growth potential. But remember, success in this sector is far from guaranteed—practicing solid risk management is crucial to protect your portfolio. As I teach my students, trading volatile stocks requires discipline and an eye for diversified exposure across multiple sectors to hedge against unexpected losses.

Can you invest in quantum computing?

Yes, you can invest in quantum computing, but it’s more about trading than long-term investment at this stage. Most quantum stocks are speculative plays within a flat activity environment, making them ideal for short-term trades rather than reliable long-term holds. While the annual return for some quantum stocks has been explosive, the industry is far from mature, with many companies struggling to generate consistent asset class return.

Investors can gain exposure to the sector through public companies like Rigetti Computing (NASDAQ: RGTI) and D-Wave Quantum Inc. (NYSE: QBTS) or by looking into larger tech firms like Microsoft, which is integrating quantum systems into its Azure cloud infrastructure business. As with any speculative sector, risk management is key. Focus on market price trends and avoid getting emotionally attached to a company narrative, especially when trading around high-volatility trading days.

What company is leading in quantum computing?

While no single company dominates the quantum computing sector, Google has emerged as a frontrunner with its Willow quantum chip, which recently achieved new milestones in error correction and processing speed. Microsoft is also heavily investing in quantum computing systems through its Azure Quantum platform, while IBM has maintained its position as an innovator in individual industry advancements, particularly in quantum research.

For traders, identifying the leading company means watching not only technological progress but also the CEO role and executive roles that shape these firms’ strategies. Companies like Google have the resources and vision to lead for decades, while smaller players such as IonQ focus on carving out niche opportunities. The quantum computing sector is dynamic, and staying informed about growth by region and developments in international business and finance can give traders an edge.

Is there a publicly traded quantum computer company?

Yes, there are several publicly traded quantum computing companies. Rigetti Computing (NASDAQ: RGTI), Quantum Computing Inc. (NASDAQ: QUBT), and D-Wave Quantum Inc. (NYSE: QBTS) are among the most well-known pure plays in this sector. These companies are focused on advancing quantum processors and other technologies that could eventually surpass today’s classical computers.

However, traders should be cautious—these stocks are speculative and often experience high volatility. Keep an eye on metrics like average price and book ratios to assess their valuation. For those seeking broad exposure, some larger companies like Nvidia and Google offer indirect access to quantum developments while also providing more stable diversified exposure to other tech sectors. Always approach quantum stocks with risk management in mind, as the sector’s high potential for growth comes with equally high risks.