Will The Quantum Stock Story Continue in 2025?

Quantum computing stocks have seen remarkable growth in 2024, capturing the attention of investors worldwide. Surpassing the broader market and traditional tech, these stocks are driving significant interest due to their rapid advancements and rising computational demands in various sectors. Let's take a quick glance over the names to have popped up most this year.

Of the sector names to have thrived this year, Rigetti Computing's stock (NASDAQ: RGTI) has witnesses a staggering increase of more than 1,800% through 2024. Headquartered in California, the firm has launched an 84-qubit Ankaa-3 system to much fanfare.

D-Wave Quantum, Inc. (NYSE: QBTS), based in Palo Alto, has lagged Rigetti, yet still shown a 1,000% gain in its stock value.

Quantum Computing, Inc. (NASDAQ: QUBT) from New Jersey experienced a formidable 1,900% rise in stock value following news of a contract with NASA, highlighting the company's growing credibility and potential in the sector.

Another highlight is IonQ, Inc. (NYSE: IONQ), which achieved a 250% + increase in value, albeit from a considerably higher base.

Quantum computing stocks have considerably outperformed conventional tech leaders in 2024, driven by growing interest from investors, sometimes disconnected from fundamentals. Huge challenges remain for the sector, yet the sentiment from retail seems insistent on holding firm. At some stage, revenue will need to catch up with the bullish fever, but that could take some time. Growth has been seen across a few of the names, but whether 2025 could ring out a repeat seems to be difficult with the appreciation already seen. Excitement and growth in certain names could certainly be a possibility with the trend in tact, but the blanket growth in all quantum names may need to be thinned.

If the sector can continue to gain partnerships with big names, and demonstrate effectiveness in solving computational problems that are outside the scope of traditional computing, then the bulls may be in charge longer. The renewal of the quantum funding bill in the U.S. could also be a catalyst to add fuel to the rally.

The quantum computing sector is drawing significant attention, but not all for the right reasons according to some. As advancements continue, companies in this sector are likely to experience further gains, but as for the stocks themselves, questions remain.