Quantum computing stocks are continuing their roller coaster ride in the first half of 2025 amid fresh industry outlooks from consultancy McKinsey and Wall Street firm Morgan Stanley. D-Wave Quantum has posted the biggest gain this year, followed by Quantum Computing in the wake of an early June rally.
Heading into the market open on June 30, D-Wave stock has advanced 66% in 2025. Shares in Quantum Computing have gained over 4% this year. In June, shares have climbed 27%.
Meanwhile, Rigetti Computing has retreated 27% and IonQ has dropped 3% this year.
Quantum computing works on a subatomic level and uses exotic technologies, like supercold superconductor chips. Further, Quantum computing aims to solve problems too complex for today's classical computers.
Quantum stocks rallied in December after Alphabet's Google announced its "Willow" quantum computing chip. Quantum computing stocks sold off in early January on comments by Nvidia Chief Executive Jensen Huang. Huang said that the technology won't be "very useful" for 15 to 30 years. Huang later backed off that stance.
McKinsey Expects Quantum Boom
Most pundits are positive on the long range outlook of quantum companies. In its annual report published in late June, consultancy McKinsey projected a quantum technology boom.
"Our new research shows that the three core pillars of QT — quantum computing, quantum communication, and quantum sensing — could together generate up to $97 billion in revenue worldwide by 2035," said the McKinsey report. "Quantum computing will capture the bulk of that revenue, growing from $4 billion in revenue in 2024 to as much as $72 billion in 2035. While QT will affect many industries, the chemicals, life sciences, finance, and mobility industries will see the most growth."
The report added: "We found that by 2035, quantum computing could be worth $28 billion to $72 billion, quantum communication could be worth $11 billion to $15 billion, and quantum sensing could be worth $7 billion to $10 billion — for a total of as much as $97 billion. This growth shows no signs of slowing. We predict that by 2040, the total QT market could reach $198 billion."
Quantum, Artificial Intelligence Synergy
In a report published June 26, Morgan Stanley analysts touted synergy with artificial intelligence applications.
"We view a merging of the speed of quantum computing with the learning power of AI as a partnership rather than a competition with classical computing," said the Morgan Stanley report. "Quantum chips are designed to work as quantum accelerators alongside AI systems to unlock entirely new capabilities that can amplify AI's potential beyond the reach of classical computing. The two technologies have very different strengths and therefore lend themselves to different use cases with AI excelling at creativity, language and video processing, while quantum computing is more suited for tackling complex problems that are beyond the capabilities of classical algorithms."
In addition, D-Wave stock jumped on better-than-expected first quarter financial results. D-Wave is a pioneer in "annealing" quantum technology.
Meanwhile, IonQ has been making acquisitions. Shares in Quantum Computing were pressured recently by a new $200 million private stock placement.
Quantum Computing Stocks: ATR Ratings
Further, quantum computing stocks are volatile, according to the average true range metric available on IBD's MarketSurge.
The ATR metric gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.
Quantum Computing's ATR is highest at 13.65%. IonQ's 21-day ATR comes in at 7.87%. Rigetti's ATR is 7.75% while D-Wave's ATR is 7.85%.
Further, IBD suggests stocks with ATRs of up to 8% in the current market.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
