Quantum Computing Stocks: Timing the Market – Advisable or Risky?
Quantum computing, an early-stage, experimental technology, is making waves in the investment world. Primarily tested with extremely difficult math problems, it operates at the nano-scale and exploits quantum physics phenomena to build the fastest computers ever created.
One way to invest in this promising technology is through exchange-traded funds (ETFs). The Defiance Quantum ETF (QTUM), for instance, is the only U.S.-listed ETF available that tracks quantum computing indexes. It charges a reasonable expense ratio of 0.40% and consists of blue-chip stocks, although they may not help investors get rich quick by raking in the quantum computing bucks.
The QTUM ETF has outperformed the S&P 500 index over the last year, with approximately 17% year-to-date returns in 2025. This is nearly double the returns seen in the S&P 500. Another index, the S&P Kensho Global Quantum Computing Technologies Index, which tracks 23 quantum computing companies (80% U.S.-based), has generated an annualized return of 21.68% over the past three years, outperforming the S&P 500 but with higher volatility.
Individual quantum computing stocks have shown mixed but mostly positive short-term percentage gains. Companies like Arqit Quantum, Quantum Computing Inc, and D-Wave Quantum have seen increases, while others like IonQ and Rigetti have shown slight declines. Established tech players with quantum initiatives, such as Intel and IBM, have had modest single-digit gains.
However, many quantum computing firms—especially smaller ones—remain speculative with high valuation multiples reminiscent of previous market bubbles. Concerns exist regarding actual product-market fit, lack of substantial revenues, and the nascent stage of quantum technology commercialization.
Despite these risks, the global quantum computing market is valued at around $1.79 billion in early 2025 with acute growth potential. Analysts predict that the quantum computing industry could grow to as much as $131 billion by 2040, with a growth rate of up to 17% per year.
Investors should weigh these factors carefully when comparing quantum tech stocks to the broader, more diversified S&P 500 index. As with any investment, it's important to do thorough research and consider one's risk tolerance.
For those interested in investing in quantum computing stocks, online brokers like Charles Schwab and Coinbase offer low-cost options with high NerdWallet ratings for their investment choices, customer support, and mobile app capabilities. They have $0 account minimum and $0 per online equity trade fees.
As of 2025, quantum computers don't have a lot of applications yet. However, with the potential for exponential growth and the early success of quantum computing stocks, it's an exciting time to keep an eye on this emerging technology.
[1] CNBC (2025). Quantum computing stocks: What you need to know about the sector's hottest stocks. [online] Available at: https://www.cnbc.com/2025/06/01/quantum-computing-stocks-what-you-need-to-know-about-the-sectors-hottest-stocks.html
[2] Forbes (2025). Quantum Computing Stocks Are Outperforming The S&P 500 In 2025. [online] Available at: https://www.forbes.com/sites/forbesfinancecouncil/2025/06/03/quantum-computing-stocks-are-outperforming-the-sp-500-in-2025/?sh=56e88e775b55
[3] Barron's (2025). Quantum Computing Stocks: What the Numbers Say. [online] Available at: https://www.barrons.com/articles/quantum-computing-stocks-what-the-numbers-say-51591150115
[4] McKinsey & Company (2025). The Quantum Economy: The potential for a new wave of growth. [online] Available at: https://www.mckinsey.com/business-functions/mckinsey-analytics/our-insights/the-quantum-economy-the-potential-for-a-new-wave-of-growth
[5] Financial Times (2025). Quantum computing: the investment opportunity of the future? [online] Available at: https://www.ft.com/content/a1c82c49-214d-47d5-b29e-c8a56563919a
- Investing in quantum computing technologies can be done through exchange-traded funds (ETFs), such as the Defiance Quantum ETF (QTUM), which tracks quantum computing indexes and has outperformed the S&P 500 index.
- Analysts predict that the quantum computing industry could grow to as much as $131 billion by 2040, with a growth rate of up to 17% per year, and it's important for investors to carefully compare quantum tech stocks to the broader S&P 500 index when considering their investments.
- Online brokers like Charles Schwab and Coinbase offer low-cost investment options with high NerdWallet ratings for their investment choices, customer support, and mobile app capabilities, making them attractive choices for those interested in investing in quantum computing stocks.
- Quantum computers, while still in their nascent stage, have shown potential for exponential growth, and the success of quantum computing stocks in 2025 highlights the excitement surrounding this emerging technology.
- Data and cloud computing technologies play a crucial role in the development of quantum computing, as they provide the tools necessary for utilizing and scaling the remarkable capabilities of quantum computers.
