Key Takeaways
- Quantum computers use qubits that exploit superposition, enabling them to evaluate many possibilities simultaneously—a capability that could dramatically accelerate AI, optimization, and molecular‑simulation tasks.
- McKinsey estimates quantum computing could generate up to $2.7 trillion of global economic value by 2035, highlighting the technology’s long‑term upside.
- The pure‑play quantum hardware companies—IonQ (trapped‑ion), Rigetti (superconducting), and D‑Wave (quantum annealing)—are still research‑focused, generate modest revenue, and continue to post large operating losses funded by repeated equity raises.
- Their valuations are wildly speculative: IonQ trades at a price‑to‑sales (P/S) ratio near 58, while Rigetti and D‑Wave sit around 480, reflecting expectations far beyond current fundamentals.
- Nvidia is presented as a more attractive way to gain quantum exposure because its CUDA‑Q platform provides the essential classical‑quantum hybrid infrastructure, and its P/E ratio of ≈32 is near a seven‑year low, suggesting the stock may be undervalued relative to future quantum‑AI growth.
- Investors seeking near‑term momentum from data‑center expansion plus leveraged exposure to longer‑term quantum advances may find Nvidia a compelling buy, while pure‑play quantum stocks remain high‑risk, speculative bets.
Quantum Computing’s Core Advantage Over Classical Systems
Quantum computing represents a fundamental shift from classical systems, which process data using binary bits that exist as zeros or ones in underlying codebases. Quantum machines use qubits, which possess a property called superposition — allowing them to evaluate vast numbers of possibilities simultaneously. This capability holds particular promise for artificial intelligence (AI), where quantum computers could deliver faster answers to complex optimization problems, enhance machine learning, and simulate molecular interactions, among many other uses. According to McKinsey & Company, quantum computing could add up to $2.7 trillion of value to the global economy by 2035, underscoring the scale of the opportunity as this technology matures from laboratory curiosity toward practical utility.
The Pure‑Play Quantum Hardware Landscape
IonQ (IONQ -3.76%), Rigetti Computing (RGTI -4.71%), and D‑Wave Quantum (QBTS -5.21%) are the primary publicly traded pure‑play companies focused on quantum computing hardware and services. IonQ employs trapped‑ion qubits in its quantum systems, which aim to improve AI models and create better data for research purposes. Meanwhile, Rigetti uses superconducting qubits to build quantum computers that customers can leverage with existing AI‑native tools. Both IonQ and Rigetti offer access to their platforms through cloud‑based environments, seeking integrations with infrastructure providers like Microsoft Azure, Amazon Web Services, and Google Cloud. D‑Wave has primarily focused on a niche technology called quantum annealing that is only useful for solving optimization problems and sampling problems. However, those types of problems include a host of real‑world applications in areas like logistics, finance, and drug discovery.
Financial Reality: Losses, Dilution, and Speculative Valuations
Across these companies, technology remains heavily research‑oriented. While commercial systems and cloud access are expanding, they are still years away from delivering enterprise‑grade fault‑tolerant machines capable of providing a measurable quantum advantage. Analyzing the financial realities of quantum pure plays, though they are all generating some revenues and receiving support from government subsidies, each of these quantum pure plays continues to post substantial operating losses. All of them have relied on repeated equity raises to fund their research and development. The result has been ongoing shareholder dilution.
IONQ Revenue (TTM) data by YCharts shows modest top‑line figures that pale in comparison to market expectations. The valuations of the quantum pure plays reflect extreme speculation rather than concrete fundamentals. IonQ has a price‑to‑sales (P/S) ratio around 58, while Rigetti and D‑Wave both sport P/S multiples near 480. For cash‑burning operations whose progress has yet to translate into profitability or self‑funding growth, these valuation profiles are overextended, to say the least.
Why Nvidia May Be the Better Quantum Play
In my view, Nvidia (NVDA -1.01%) is the strongest candidate to consider buying for any investor seeking quantum computing exposure in their portfolio. Nvidia supplies the classical infrastructure essential to building quantum machines through its CUDA‑Q platform, which enables hybrid quantum‑classical programming across GPUs, CPUs, and quantum processors. As quantum AI scales up, these systems will increasingly depend on Nvidia’s ecosystem for next‑generation algorithms that allow the strengths of classical and quantum computing to be efficiently combined.
Meanwhile, Nvidia’s price‑to‑earnings (P/E) ratio of 32 is hovering around its lowest level in nearly seven years. This discount suggests that the potential upsides of quantum computing adoption and continued AI infrastructure expansion are not yet fully reflected in Nvidia’s stock price.
NVDA PE Ratio data by YCharts.
This positions Nvidia stock as a compelling buy to capture the near‑term momentum of data‑center build‑outs, while offering leveraged exposure to longer‑term advances of quantum computing over the coming decade.
Investment Takeaway: Balancing Near‑Term Certainty with Long‑Term Speculation
For investors, the quantum computing theme presents a classic risk‑return trade‑off. Pure‑play stocks like IonQ, Rigetti, and D‑Wave offer direct exposure to the cutting edge of quantum hardware but come with high cash burn, dilutive financing, and valuations that appear detached from current fundamentals. Their success hinges on achieving fault‑tolerant, scalable quantum advantage—a milestone that remains years away.
Conversely, Nvidia provides a “picks‑and‑shovels” approach: it benefits from the inevitable growth of data‑center infrastructure needed to support both classical AI workloads and the emerging hybrid quantum‑classical pipelines. Its relatively modest valuation and strong cash‑generating business model make it a lower‑risk vehicle to participate in the quantum upside while still profiting from the ongoing AI boom.
In summary, while the pure‑play quantum companies embody the excitement and potential breakthroughs of the technology, their current financial profiles suggest they are best suited for speculative, high‑tolerance portfolios. Nvidia, by contrast, offers a more balanced way to gain quantum exposure with a stronger near‑term foundation and a clearer path to value creation. Investors should weigh their risk appetite, time horizon, and belief in the timing of quantum‑advantage realization when deciding how to allocate capital within this nascent but transformative sector.
https://www.fool.com/investing/2026/07/26/forget-ionq-rigetti-computing-and-d-wave-quantum-t/