Quantum computing stocks like Rigetti Computing (RGTI), IonQ (IONQ), and D-Wave Quantum (QBTS) have been the talk of the town over the past year.
But some analysts say the hype is running well ahead of fundamentals, warning that extreme valuations could lead to painful corrections.
“If I had to pick, I'd rather buy a promising biotech stock at ~2x net cash [...] than hyped up trend quantum names,” financial analyst Daniel Romero wrote on X.
If I had to pick:
undefined Daniel Romero (@HyperTechInvest) May 29, 2025
I'd rather buy a promising biotech stock at ~2x net cash like $ABCL, $NTLA, $GRAL or $PRME
Than hyped-up trendy quantum names like $RGTI, $QBTS, and $IONQ
Both are highly speculative and reliant on big innovations, but there's a huge valuation gap
“Both are highly speculative and reliant on big innovations, but there's a huge valuation gap.”
Romero, who focuses on early-stage growth sectors, highlighted several biotech names with healthier financials and lower valuations, including AbCellera Biologics (ABCL), Intellia Therapeutics (NTLA), Grail (GRAL), and Prime Medicine (PRME).
He pointed to their strong net cash positions as a key buffer in a capital-intensive industry.
Biotech is also a speculative sector, but many analysts say these companies are grounded in more tangible business models compared to quantum players still years away from commercialization.
Quantum still decades away?
Quantum computing remains one of the most hyped sectors on Wall Street. But critics argue that the reality doesn’t match the headlines.
Dan Elton, an AI and physics researcher, recently criticized online influencers for “absolutely gushing over the technical specifications” of Rigetti Computing, a company with under $10 million in annual revenue and a market cap near $4 billion.
“When will this latest fever break?” he asked.
A widely-followed trader Ondrej Slunecko also flagged Rigetti’s weak fundamentals, reminding investors the company posted just $1.4 million in revenue last quarter.
“Remember this before you YOLO into any speculative stock,” he warned.
$RGTI did $1.4M in revenue last quarter.
undefined Ondrej 🎯 (@ondrejslunecko) May 26, 2025
I know people who made more than that 😆
So remember this before you YOLO into any speculative stock.
This is binary outcome, either they really figure quantum computing and you make 100x or it goes to 0 - not much in between pic.twitter.com/oiPgLnHfIb
IonQ has drawn similar criticism. Despite posting $43 million in revenue in 2024 and projecting a doubling in 2025, its $11 billion market cap and 445% rally over the pas year has raised eyebrows.
While there's broad consensus that quantum technology will be transformative, the timeline is still murky.
Nvidia CEO Jensen Huang recently noted that “very useful” quantum computing may be 20 years away. Although more optimistic, Google CEO Sundar Pichaisuggests mainstream applications are likely at least 5 to 10 years out.
Until then, investors chasing the quantum dream may find themselves in a pickle, making biotech stocks with real revenue and cash on hand look like the more rational bet.
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