Quantum Fallout: 1 Quantum Stock to Buy, 1 to Hold, and 1 to Sell on the Recent Dip

Quantum computing stocks have not been spared in the recent tech sell-off. While the technology holds promise to be the next big breakthrough after AI, it is still very much in its infancy. Various techniques and companies are vying to crack the quantum code, and while there is no guarantee which one will come out on top, some certainly look better positioned than others.

Let's look at one quantum computing stock to buy, one to sell, and one to hold on this recent dip.

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IonQ

If there were one quantum computing stock I'd buy and tuck away over the next decade, it would be IonQ (NYSE: IONQ). One of the biggest obstacles the industry faces today is that quantum computers are currently very error-prone. Because quantum computing uses qubits, which are in a state of superposition, instead of traditional bits, they are very sensitive to failing due to outside forces such as vibrations or temperature changes. While the industry still needs to make big strides, IonQ is currently the accuracy leader, achieving 99.99% 2-qubit gate fidelity.

IonQ's accuracy lead can be largely attributed to its trapped-ion approach. Instead of using fabricated qubits, it starts by using actual charged atoms (ions), which are identical in nature and less fragile. While traditional trapped-ion systems use electric fields to suspend the ions and rely on complex laser setups to control and entangle them, IonQ embeds microwave antennas directly into its chips to manipulate the qubits electronically, dramatically improving stability. This on-chip technique also reduces the system's size, which will be important later when the company looks to commercialize and scale quantum computers.

In addition to its accuracy edge, IonQ is also looking to control the entire quantum ecosystem. It has made acquisitions to get into the areas of quantum networking, sensing, and transmission. It is also in the process of acquiring quantum foundry SkyWater, helping it become vertically integrated. Given its accuracy leadership and ecosystem approach, this is the quantum stock to buy.

Rigetti Computing

One quantum stock I'd be looking to sell is Rigetti Computing (NASDAQ: RGTI). While the company's superconducting qubit approach offers a significant speed advantage over trapped-ion systems, it lags in accuracy and requires expensive dilution refrigerators, as superconducting qubits must be cooled to near absolute zero to operate.

Rigetti, meanwhile, has struggled to reach accuracy milestones. Its Cepheus-1-108Q system was delayed earlier this year due to accuracy issues, and was eventually brought to market with 99.1% 2-qubit gate fidelity, missing its 99.5% target. While that may sound close to IonQ's 99.99% fidelity, in the world of computing, it's not even in the same ballpark.

Meanwhile, Rigetti also suffered a reputational blow when it wasn't chosen for Stage B of the Quantum Benchmarking Initiative (QBI) of the U.S. Defense Advanced Research Projects Agency (DARPA). This is a Pentagon-funded program to identify and back the best quantum computing technologies.

Infleqtion

The one quantum computing stock I'd hold right now is Infleqtion (NYSE: INFQ). The company has found a nice niche in the realm of quantum sensing, with its quantum sensing and precision timing tools being used by the U.S. and U.K. governments.

However, what makes the company particularly interesting is its neutral-atom technology. Similar to the trapped-ion approach, it uses individual atoms that are manipulated and cooled with lasers. However, it removes their mutual repulsion, allowing higher qubit densities.

The technology is faster than the trapped-ion approach, while it is more accurate than using superconducting qubits. The company achieved 99.73% 2-gate fidelity back in 2024, so it's likely made strides that will boost that number. Given how promising neutral atom technology looks, Infleqtion is a stock I'd keep holding.

Geoffrey Seiler has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ and SkyWater Technology. The Motley Fool has a disclosure policy.