Rosenblatt Securities on Tuesday initiated coverage on two quantum computing stocks, IonQ and D-Wave Quantum with buy ratings ahead of their second-quarter earnings reports. But shares in IonQ and D-Wave dipped as the tech-heavy Nasdaq composite retreated.
Rosenblatt analyst Kevin Garrigan set a price target of 70 on IonQ stock and a target of 30 on D-Wave stock. He did not start coverage on two other public companies, Rigetti Computing and Quantum Computing.
"We believe IonQ provides an attractive way to gain exposure to the quantum computing market, a market that we see as the next era of computing," Garrigan said in a report. "It is our view that the quantum computing market is setup to be a multiple winner market and not a winner takes all market."
He added: "We have a high level of confidence that IonQ is well positioned to take its place among the winners, and unlike some early stage competitors, IonQ will be exiting 2025 with annualized revenues in excess of $100 million, nearly doubling in 2026, and could well be on track for $1 billion in revenue over the next few years."
On the stock market today, IonQ stock fell 4.3% to close at 40.53. D-Wave stock shed 3.7% to close at 17.67.
IonQ reports earnings after the market close on Aug. 6, followed by D-Wave Quantum early on Aug. 7. Rigetti reports on Aug. 12, with Quantum Computing also due in mid-August.
Meanwhile, a basic options trading strategy around earnings — using call options — allows investors to buy a stock at a predetermined price without taking a lot of risk.
D-Wave A Pioneer In 'Quantum Annealing'
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, such as simulating chemical reactions. Other applications are expected in material design.
D-Wave stands out as the chief developer of one flavor of quantum technology. Founded in 1999 by researchers from the University of British Columbia in Canada, the company pioneered the process called "quantum annealing."
"D-Wave is the leading provider of quantum annealing systems," said Garrigan. "It is our view that quantum annealing offers several advantages over both classical computing and gate-based quantum systems for optimization workloads."
He added: "We believe D-Wave's growing portfolio of commercial customers and use cases help validate the technology. Government agencies have mainly been focused on gate-model quantum computers, but we believe the company's focus will shift and open up new opportunities for revenue growth."
Quantum Computing Stocks Volatile In 2025
Wall Street analysts expect IonQ to report a loss of 30 cents per share, widening its loss from 18 cents a year earlier. Also, IonQ revenue is expected to grow 52% to $17.3 million. In the September quarter, IonQ revenue is expected to reach $25.6 million.
While D-Wave turned profitable on an adjusted basis in the March quarter on a one-time revenue pop, it's expected to record a 5-cent loss in Q2, narrowing from a 10-cent loss a year earlier. D-Wave revenue is expected to grow 17% to $2.6 million. In the September quarter, D-Wave revenue will reach $3.2 million, analysts estimate.
Quantum computing stocks have been volatile in 2025 amid a fierce debate over how fast the technology will be commercialized. Nvidia has offered differing views.
In 2025, D-Wave stock has advanced 120%. Shares in IonQ are up almost 4%. Shares in Rigetti have advanced over 1% while Quantum Computing is down 3%.
Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
