- Quantum computing stocks are surging as investor optimism grows on shifting rate cut expectations.
- New initiatives from tech leaders like Microsoft signal a promising future for the quantum sector.
- In this piece, we will take a look at 3 quantum stocks on the rise and the reasons behind it.
- Kick off the new year with a portfolio built for volatility - subscribe now during our New Year’s Sale and get up to 50% off on InvestingPro!
Quantum computing stocks soared to new heights on Wednesday, continuing the momentum from the day before, with pre-market trading signaling that today's gains could be even more significant.
This surge comes amid a renewed appetite for risk, fueled by encouraging U.S. inflation data that suggests inflationary pressures may be easing.
While headline numbers remained stable, core inflation slowed to 3.2% in December, surprising economists who had expected it to hold steady at 3.3%.
The latest data has stirred optimism among investors, offering hope for potential rate cuts later in 2025.
As traders adjust their expectations for the Fed's next moves, quantum computing stocks are benefiting from this positive shift in sentiment.
But what else is driving this rally in quantum shares?
While the softer-than-expected inflation data certainly helped ignite risk-taking, the true catalyst behind the surge was Microsoft’s announcement of a new initiative to help businesses prepare for the quantum computing revolution.
The tech giant’s commitment to the future of quantum technology has sparked excitement, with Microsoft’s President and COO of Strategic Missions and Technology, Mitra Azizirad, predicting that research and development in quantum computing will accelerate in the coming year.
"We are at the dawn of the era of reliable quantum computing," Azizirad stated, adding that quantum computers will soon solve major challenges and create new business opportunities.
This forward-looking optimism contrasts with skepticism from other tech leaders like Jensen Huang and Mark Zuckerberg, who have cautioned that practical quantum computers are still decades away.
This mixed sentiment follows a volatile period for quantum stocks, which had fallen sharply after December’s rally. However, with major breakthroughs like Google’s Willow chip and ongoing progress in quantum technology, the sector remains poised for significant growth.
Investors are closely watching quantum computing companies, including Rigetti Computing (NASDAQ:RGTI), D Wave Quantum (NYSE:QBTS), and Quantum Computing (NASDAQ:QUBT), which have all posted impressive gains recently.
3 quantum stocks on the rise
- 1. Rigetti Computing
Rigetti Computing gained 22.23% yesterday and is up over 6% in pre-market trading at the time of writing:
- 2. D Wave Quantum
D Wave Quantum gained 22.41% yesterday, and is currently up nearly 10% in pre-market trading:
- 3. Quantum Computing
However, it was Quantum Computing that soared the most, with +55.45% at the time of closing yesterday and 20%+ at the time of writing:
Despite these gains, these stocks are still recovering from a significant correction and remain far from their record highs reached just last month.
However, the renewed optimism surrounding quantum computing could sustain momentum in the sector, potentially boosting tech stocks across the board.
Looking ahead, the quantum computing sector could emerge as the next major technological frontier after AI.
As top tech companies continue to invest in quantum research, the broader tech industry stands to benefit from innovations in quantum computing, driving future productivity and technological advancements.
How can investors spot these stocks before they take off, every month?
For investors eyeing opportunities in the tech space, tracking emerging trends like quantum computing could be key to capitalizing on the next big wave.
As always, identifying the best stocks to buy requires a keen eye on the market, and strategies like ProPicks AI's Tech Titans strategy, available through InvestingPro, offer expert insights into high-potential stocks likely to soar in the coming weeks.
Source: InvestingPro
Note that the Titans of Tech strategy is offered alongside over 30 other thematic and regional strategies.
The best part?
These strategies are currently available at a discounted price through this link, with up to -50% off InvestingPro subscriptions for a few more days amid the New Year sale.
Disclaimer: This article is written for informational purposes only; it does not constitute a solicitation, offer, advice, counseling or recommendation to invest as such it is not intended to incentivize the purchase of assets in any way. I would like to remind you that any type of asset, is evaluated from multiple points of view and is highly risky and therefore, any investment decision and the associated risk remains with the investor.