Quantum Computing Stocks IonQ and D-Wave Quantum Have Nearly Doubled in 5 Weeks -- Don't Take the Bait

In case you haven't noticed, Wall Street is enjoying a rip-roaring bounce from its Iran war correction in March. While artificial intelligence (AI) stocks continue to take center stage, it's quantum computing stocks that have delivered some of the most eye-popping returns.

From the closing bell on March 30 through the end of trading on May 6, quantum computing pioneers IonQ (NYSE: IONQ) and D-Wave Quantum (NYSE: QBTS) have soared by 98% and 84%, respectively. Honorable mention to Rigetti Computing, as well, for its 56% gain over the same timeline.

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IonQ and D-Wave Quantum have been unstoppable since late March

While improved stock market sentiment is partly responsible for these gains, investors appear to be far more excited about the otherworldly growth prospects of quantum computing stocks.

On May 6, IonQ reported record first-quarter revenue of $64.7 million (up 755% from the prior-year quarter) and increased its full-year sales guidance to $260 million to $270 million. It also closed out the quarter with a treasure chest totaling $3.1 billion in cash, cash equivalents, and investments. We're beginning to see evidence that quantum computing companies are moving beyond concept and into platforms.

D-Wave, which is slated to report its first-quarter operating results on May 12, closed out 2025 with a robust $884.5 million in cash and marketable investments. It'll also mark the first quarterly report since D-Wave announced its $550 million acquisition of Quantum Circuits.

Though it may seem as if quantum computing stocks are slam-dunk investments, you'd be wise not to take the bait.

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Don't be tempted by quantum computing stocks

The biggest problem facing the evolution of quantum computing is history. Even as IonQ enters the early stages of platformization, history tells us that quantum computing is a long way from being a proven technology.

Every game-changing technology and trend since (and including) the advent and proliferation of the internet in the mid-1990s has endured an early stage bubble-bursting event. These bubbles form and pop because investors overestimate how quickly new technologies will be adopted or optimized. Pure-play quantum computing stocks IonQ, D-Wave, and Rigetti have both problems. This is a technology that's very early in its adoption and is a long way from maximizing sales and profits for clients. Eventually, investors' expectations will prove too lofty.

Valuations are also a real concern for quantum computing stocks. History shows that no companies at the forefront of a game-changing technological trend have been able to sustain a price-to-sales (P/S) ratio above 30. IonQ and D-Wave Quantum were sporting trailing 12-month P/S ratios of 116 and 311, respectively, as of May 6.

But the biggest risk of all is that their first-mover advantages may be razor-thin. Pure-play quantum computing stocks lack established operating segments to fall back on. Meanwhile, most members of the "Magnificent Seven" have sustained competitive edges and fortress-like balance sheets. They have the ability to aggressively invest in quantum processing units, potentially offsetting the first-mover advantage that IonQ and D-Wave Quantum hold dear.

Although quantum computing stocks are scorching-hot, once again, don't take the bait.

Sean Williams has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.