ZACKS·2025-09-18 18:21Core Insights - The quantum computing sector is rapidly moving towards commercialization, driven by major breakthroughs and increasing government support, although it remains small compared to the broader market [2][10] - Recent developments from leading companies in the quantum space, such as IonQ, D-Wave Quantum, and Rigetti Computing, highlight both growth and speculative nature of the sector [4][5][6] Company Developments - IonQ completed the acquisition of Oxford Ionics, enhancing its technological roadmap and expanding its international presence [4] - D-Wave Quantum reported over 80% year-over-year growth in bookings following its Qubits Japan 2025 conference, indicating strong global demand for its systems [5] - Rigetti Computing secured a $5.8 million contract from the Air Force Research Laboratory to advance superconducting quantum networking, showcasing government investment in quantum infrastructure [6] Market Perspective - The combined market capitalization of publicly traded quantum computing companies is approximately $35–40 billion, significantly smaller than the non-Tesla EV sector, which is valued at about $70–80 billion [9] - Historical context shows that at the peak of the EV hype cycle, companies like Rivian and Lucid had valuations exceeding the entire quantum sector, indicating that quantum is still in its early lifecycle with potential for growth [10] Technical Analysis - The recent rallies in quantum stocks have been remarkable, with the sector becoming a favorite among retail investors [11] - A prudent strategy for new investors may involve waiting for a pullback or consolidation phase before entering the market, while current holders can enjoy the momentum [12]