CNBC’s ‘Mad Money’ host Jim Cramer called the market’s behavior in the quantum computing sector “ironic” on Thursday, highlighting a stark divergence between legacy giant International Business Machines Corp. (NYSE:IBM) and its pure-play rivals.
Cramer Questions IBM’s Fall Despite ‘Advanced’ Quantum Product
In a post on X, Cramer noted that IBM was “down big,” after it slid 6.54% in premarket on Thursday despite having what he called the “most advanced quantum product,” while other quantum companies soared.
The surge in premarket for stocks like IonQ Inc. (NYSE:IONQ), up by 9.74%, Rigetti Computing Inc. (NASDAQ:RGTI), and D-Wave Quantum Inc. (NYSE:QBTS), higher by 7.52% and 10.77%, respectively, follows reports that the Donald Trump administration is in talks to take equity stakes in them.
However, Cramer said, “ironic that the company with the most advanced quantum product, IBM, is down big, while the others, for $10 million stakes by the USG, are up 10-20%.. Year of magical investing continues.”
This comes as IBM's quantum computing product is considered better due to its mature infrastructure, focus on fault-tolerant logical qubits, extensive software ecosystem, and versatility across applications.
RGTI, IONQ, QBTS: ‘Poster Children Of Several Excesses’
However, analysis from The Arora Report suggests this “magical” rally is being driven by retail investors and may be overheating. A technical chart of RGTI provided by the report identifies recent “MOMO CROWD BUYING” (momentum crowd) but also indicates that “SMART MONEY SELLING” has begun.
The report classifies these quantum stocks as “poster children of several excesses” in the market, noting the momo crowd has pushed them “far beyond what they are worth” in the near term.
See Also: Jim Cramer Says ‘Sell Gold’—Analyst Tavi Costa Disagrees, Citing Gold-To-Silver Ratio
Quantum Stocks RGTI, IONQ, And QBTS Remain Overpriced
Valuation data support this view of a speculative bubble. According to Benzinga Pro, Rigetti trades at an astronomical Price-to-Sales (P/S) ratio of 1,136. IonQ and D-Wave trade at P/S ratios of 241 and 313, respectively.
In stark contrast, IBM—the company Cramer praised for its advanced product—trades at a P/S ratio of just 4.159, underscoring the “ironic” disconnect between fundamentals and news-driven momentum that Cramer identified.
| Stocks | Price-To-Sales Ratio | Industry Average |
| IonQ Inc (NYSE:IONQ) | 241.454 | 12.04 |
| Rigetti Computing Inc (NASDAQ:RGTI) | 1,136 | – |
| D-Wave Quantum Inc (NYSE:QBTS) | 313.595 | – |
| International Business Machines Corp. (NYSE:IBM) | 4.159 | 84.27 |
On Thursday, the futures of the S&P 500, Dow Jones, and Nasdaq 100 indices were trading in a mixed manner
Meanwhile, on Wednesday, the S&P 500 index ended 0.53% lower at 6,699.40, whereas the Nasdaq 100 index fell 0.99% to 24,879.01. On the other hand, Dow Jones declined 0.71% to end at 46,590.41.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga
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