ZACKS·2025-12-29 21:01Core Insights - Pure-play quantum computing stocks such as Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) experienced significant gains in early 2025, with QBTS rising 157% and RGTI increasing by 49% due to investor enthusiasm for early-stage breakthroughs and potential revenue streams [2] - Recently, the momentum for these stocks has diminished, with QBTS gaining only 2.3% and RGTI losing 24.9% from October 2025 to date, as large tech companies like Amazon and IBM gained investor favor due to their established business models and quantum initiatives [3][4] Quantum Computing Market Dynamics - Analysts have indicated potential further downside for pure-play quantum stocks as revenue scale and sustainable profitability are still years away, making it challenging to project significant gains for 2026 [4] - Large technology firms such as Amazon and IBM are positioned to benefit from quantum computing due to their diversified and profitable business models, allowing them to invest in quantum initiatives without relying on immediate monetization [8] Company-Specific Developments - Amazon Web Services (AWS) is advancing quantum computing through its Braket platform, which provides access to various quantum devices and has introduced the Ocelot chip for improved error correction efficiency [9][10] - IBM's quantum strategy includes the Quantum Nighthawk, a 120-qubit processor aimed at achieving scientific quantum advantage by the end of 2026, supported by its open Qiskit software and partnerships [13][14] Financial Projections - Amazon is projected to report a 2026 earnings growth of 9.5% on revenue growth of 11.3%, with a Zacks Rank of 2 (Buy) [10] - IBM is expected to achieve a 2026 earnings growth of 7.5% on revenue growth of 4.9%, also holding a Zacks Rank of 2 [15]