The Motley Fool·2025-12-09 10:42Core Viewpoint - The quantum computing sector may be experiencing a bubble, characterized by inflated stock prices driven by investor hype and fear of missing out, which could lead to significant declines when the bubble bursts [1][8]. Quantum Computing Stocks Analysis - Rigetti Computing has seen its stock price increase over 6 times in the past year, but it reported a net loss of approximately $201 million in Q3 2025, with an 18% year-over-year revenue decline [5][6]. - D-Wave Quantum's stock has surged over 440% in the last year, yet it reported a net loss of $140 million despite doubling its revenue year-over-year in Q3 [6]. - IonQ, the largest pure-play quantum computing company with a market cap of around $19 billion, experienced a 222% year-over-year revenue growth in Q3 but reported a substantial net loss of $1.1 billion [7]. Alternatives to Pure-Play Quantum Stocks - Major tech companies like Microsoft, Amazon, and IBM are heavily investing in quantum computing while generating revenue from other business segments, making them safer investment options [9]. - Microsoft is advancing quantum computing through its Azure platform and topological superconductors, but its overall investment thesis remains strong without reliance on quantum computing [10]. - Amazon, a leader in e-commerce and cloud services, is also involved in quantum computing through AWS and has developed the Ocelet quantum computing chip [12]. - IBM continues to be a significant player in quantum computing while primarily generating revenue from software and consulting [13]. Best Post-Bubble Quantum Computing Stock - Alphabet is identified as the best quantum computing stock to hold if the bubble bursts, as it leads in quantum computing advancements with its Google Quantum AI and Willow chip, which has made significant strides in quantum error correction [14][16]. - Alphabet's business model does not depend on quantum computing for success, as it remains a dominant player in the search engine market and is experiencing rapid growth in Google Cloud [17]. - The valuation of Alphabet is more attractive compared to other tech giants, with a forward price-to-earnings ratio of 23.3, making it a compelling option for investors looking to mitigate risks associated with a potential bubble burst [18].