Rigetti, D-Wave, and other quantum computing stocks are leaping again: How high will they go?

Investors in quantum computing stocks are having another great week, with shares in the major publicly traded firms up by double digits over the last 24 hours in most cases. Here’s a snapshot of their single-day growth as of the closing bell on Thursday:

• Rigetti Computing (Nasdaq: RGTI): Up 18.25%
• D-Wave Quantum Inc (NYSE: QBTS): Up 13.97%
• IONQ Inc (NYSE: IONQ): Up 10.32%
• Quantum Computing Inc (Nasdaq: QUBT): 5;32%

All four companies were also up in premarket trading on Friday as of this writing.

Why are quantum computing stocks rising this week?

The rally is apparently being led in part by Berkeley, California-based Rigetti, which announced a major purchase order on Tuesday for two of its 9-qubit Novera quantum computing systems, which are used in research and development.

Rigetti introduced the systems in 2023 and says they’re upgradable, meaning the qubit count can be increased. Qubits, or quantum bits, are the basic units on which quantum computers operate.

Delivery of Rigetti’s two systems are expected by early next year. The purchase order totaled $5.7 million, the company said.

While that might not seem like a giant sum, it’s another sign that somebody, somewhere sees practical uses for quantum computing technology, which has remained largely theoretical until relatively recently. Rigetti did not say who purchased the systems, only that one customer was an Asian company that builds manufacturing tech and the other was an AI startup based in California.

Craig Ellis, an analyst at B. Riley Financial, also recently reiterated his Buy rating for Rigetti, as Motley Fool reported.

In addition to Rigetti’s announcement, D-Wave announced the results of a “proof-of-technology” joint project with the North Wales Police in the U.K. The project leveraged hybrid quantum technology to help optimize the placement of police vehicles.

“The hybrid-quantum technology delivered a faster, more accurate, and more efficient solution than classical methods alone, providing NWP with the ability to reduce the average incident response time by nearly 50%,” D-Wave said in its press release.

Quantum computing shares have had a wild ride this year

Publicly traded quantum computing firms began to captivate investors late last year as reports of the technology’s potential capabilities started to make headlines.

Rigetti, which was essentially a penny stock one year ago, has seen its shares increase by a staggering 4,620% over the last 12 months. The stock was trading at $35.40 a share as of Thursday’s close.

D-Wave, whose CEO has vocally pushed back against claims that commercial quantum computers are still decades away, has likewise seen its shares rise by 3,075% over that same period.

Should such wild growth give investors pause? Well, probably. Although many experts believe that quantum computing is a bonafide technical revolution that could transform the industry and the world, the sector remains highly speculative at present. It’s not hard to find critics who contend that these stocks are overvalued. Time will tell.

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