Will Quantum Computing Stocks Soar in the Second Half?

Quantum computing stocks skyrocketed in 2024, with names such as Quantum Computing and Rigetti Computing surging by more than 1,000%. Investors were eager to get in on what could become the next game-changing technology, and revenue growth as well as scientific progress from some of these quantum specialists boosted optimism.
Even after those gains, it's very possible that quantum stocks will climb in the second half of this year, and here's why.
Why investors buy quantum computing stocks
So, first, a quick note about why investors see so much potential in quantum computing. This is because this type of computing, based on quantum mechanics, makes it possible to solve problems that today's classic computers can't handle.
Quantum computing can do this by using qubits -- instead of the bits used by today's computers -- to store data. And while bits store and process data as zeros or 1s, qubits can represent a zero, a one, or both at the same time. This allows for tremendous scaling, and as a result, a problem that would take a classic computer 1,000 years to solve may take a quantum machine about five minutes.
Right now, quantum companies offer hardware and services to customers, but we're still in the early stages of development. Experts have said that truly useful quantum computers are several years away. The good news is that this means these companies have plenty of room to run when it comes to revenue growth and share price performance. It's clear that if quantum companies reach their development goals, these computers could revolutionize many industries.
Quantum stocks in 2024 and 2025
All of this helped quantum computing pure-play companies climb last year. The bull market and optimism about the economy ahead offered the perfect environment for growth stocks to excel. But in recent months, concerns about President Donald Trump's import tariff plan weighed on these players. The idea was that tariffs could lead to higher prices at home, prompting customers of quantum companies to rein in their spending.
But over the past few weeks, progress in trade talks and even initial deals with the U.K. and China have made investors more optimistic about the future. And corporate earnings haven't suggested any slowdown in spending on technology -- in fact, companies continue to reiterate their commitments to such projects.
This backdrop supports the idea of more gains for quantum companies in the second half, especially for certain players such as Rigetti and IonQ, which haven't yet fully recovered -- they're down 25% and 5%, respectively, year to date. And if they show some growth in revenue in the coming quarters, this could act as a positive catalyst for share performance, too.
Can D-Wave keep soaring?
But this doesn't mean that stocks that have continued to advance, such as D-Wave Quantum (NYSE: QBTS), which is heading for an increase of more than 80%, won't keep on rising. For example, D-Wave just recently released its Advantage2 quantum computer, which is accessible both on the cloud and on-premises. More than 20 million customer problems have been run through the prototype, and the company says the computer is now ready for use in areas such as materials simulation and artificial intelligence (AI).
Uptake of this new platform and further revenue gains -- D-Wave's revenue last quarter soared 500% to a record $15 million -- could offer this highflier an additional boost.
Of course, it's important to keep in mind that these pure-play quantum companies aren't yet profitable and are involved in a relatively new, cutting-edge technology, and that involves some risk. Any economic headwinds could hurt investors' appetite for these sorts of players.
These companies depend on a strong economy, as this increases the likelihood that potential customers will spend on their products and services. And investors generally feel more comfortable getting in on growth stocks when the economy is thriving. So, the economic situation in the second half could determine the near-term direction of these players.
But right now, there's reason to be optimistic that the U.S. trade talks, along with some better-than-expected economic data, signal better days ahead -- and that the worst-case scenario of a recession and tough times for corporate earnings will be averted. With this in mind, quantum computing stocks could be set to soar in the second half as investors look to get in on the next big technology that could deliver explosive returns.
Should you invest $1,000 in D-Wave Quantum right now?
Before you buy stock in D-Wave Quantum, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and D-Wave Quantum wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!*
Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of June 9, 2025

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Globe and Mail

2 hours ago

• Globe and Mail

Which AI Stocks Are Set to Soar in the Second Half?

Artificial intelligence (AI) stocks skyrocketed in 2024 amid excitement about this technology that could revolutionize businesses, saving time and money and leading to important discoveries. These players faced a few difficult months recently due to concerns about a potential economic slowdown. However, some of the uncertainty has passed, suggesting better days may be ahead for AI stocks. Against this backdrop, Nvidia (NASDAQ: NVDA), Apple (NASDAQ: AAPL), and Amazon (NASDAQ: AMZN) are set to soar in the second half. Here's why. 1. Nvidia President Donald Trump's plan to impose tariffs on imports weighed on technology stocks, including AI chip giant Nvidia, several weeks ago. This pushed Nvidia down nearly 30% from the start of the year through early April. Though the president initially exempted electronics products, this exemption was temporary, suggesting chips and other items would face tariffs at some point in the near future. But Nvidia has since rebounded, thanks to optimism that tariffs won't be as steep as originally expected and as the company showed the strength of its earnings through the first quarter of the year. Nvidia's revenue surged 69% to $44 billion, demand remained strong, and customer comments indicate that their spending plans for the year remain intact. This bodes well for ongoing growth for Nvidia. On top of this, the chip giant is making investments in U.S. manufacturing to limit any eventual tariff impact and sticks to its plan to update chips on an annual basis -- a move that should keep it ahead of rivals. Today, Nvidia trades for only 33 times forward earnings estimates, down from about 50 times just a few months ago, and this level offers the stock plenty of room to run in the second half. 2. Apple Among all the top tech stocks, Apple may be the one that has suffered the most amid the recent tariff turbulence. Trump, displeased that Apple has generally produced most iPhones abroad, even threatened to impose a 25% tariff on Apple's imported iPhones. Meanwhile, Apple has made efforts to diversify its manufacturing, with a plan to move much of it from China to India. Uncertainty remains as the president wants Apple to bring iPhone production to the U.S., but doing this could result in a drastically higher price for the smartphone. All of this has hurt Apple stock, which is down about 20% since the start of the year. I view this as a buying opportunity because I don't think the U.S. aims to destroy Apple's growth. It's possible that both parties will reach a reasonable agreement. Meanwhile, any positive news on the subject could result in Apple stock bouncing back in the coming months. It's important to remember that Apple has built a very profitable smartphone empire with a tremendous moat, or competitive advantage, and these elements should support growth over the long term. All of this means that buying Apple now may result in gains in the coming months, but even better, set you up for a long-term win. 3. Amazon Amazon's performance has been sluggish in recent times, with a 3% decline for the year, amid concerns that tariffs could hurt its e-commerce business and cloud computing unit, Amazon Web Services (AWS). But as mentioned above, the worst-case tariff scenario has been avoided, and the U.S. is making progress on trade agreements. So, I wouldn't expect to see a major impact from the tariffs on Amazon's growth. A key point is that Amazon has revamped its cost structure in recent years after facing pressure from rising inflation. This helped the company return to growth in just one year, and the efforts have positioned it well to maximize profit during future challenging times. So, these cost structure moves should help Amazon manage any potential tariff situation moving forward. And events such as Prime Day, which take place in the second half of the year, could help boost revenue. AWS has also been seeing tremendous growth from its AI efforts, which have helped it reach a $117 billion annual revenue run rate. We're still early in the AI story, so I would expect to see ongoing growth in this area, particularly since AWS is the world's No. 1 cloud service provider. Today, Amazon shares trade for 34 times forward earnings estimates, a reasonable level that could prompt investors to buy -- and help the stock take off in the second half. Should you invest $1,000 in Nvidia right now? Before you buy stock in Nvidia, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor 's total average return is994% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025

CBC

2 hours ago

• CBC

Canadian ambassador says there's a 'good path forward' to a trade deal with the U.S.

Social Sharing Canada's ambassador to the United States, Kirsten Hillman said she "firmly" believes that both countries could reach a trade deal within the 30-day deadline discussed at the G7 summit in Alberta last week. "We can't do anything to force the U.S. side to come to a deal, but we do think we have a good path forward if we're able to take it," she said during an interview on Rosemary Barton Live that aired on Sunday. Hillman said it's "too soon to tell" whether all U.S. tariffs imposed on Canada will be removed, and she stopped short of saying whether the federal government is willing to accept the continuation of some tariffs. "These are things that will work themselves out in the next number of weeks," she said. Canada is fighting for "open trade and stability" for Canadian workers and businesses, Hillman said during the interview. WATCH | Canadian ambassador to U.S. discusses ongoing trade talks: Canadian ambassador to U.S. 'firmly' believes in path to trade deal 4 hours ago Duration 9:16 Chief political correspondent Rosemary Barton speaks with Canadian Ambassador to the United States Kirsten Hillman about the ongoing negotiations between Ottawa and Washington. Hillman gets expanded role in Washington Prime Minister Mark Carney appointed Hillman as Canada's chief negotiator with the U.S. amid heightened trade tensions, CBC News has learned. This role comes in addition to her duties as Canada's ambassador to the U.S. Hillman previously worked on the team negotiating the Canada-United States-Mexico Agreement during U.S. President Donald Trump's first term and as Canada's chief negotiator for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. Her expanded duties now position her in bilateral talks as U.S. Trade Representative Jamieson Greer's counterpart. Trade and defence talks continuing Since Carney and Trump set the 30-day deadline while meeting at the G7 in Kananaskis, Alta., on June 16, Hillman has had three meetings with her U.S. counterparts — one immediately following the leaders' bilateral, the second on the following day with Greer and another on Friday that included Intergovernmental Affairs Minister Dominic LeBlanc, who is also the minister responsible for Canada-U.S. trade. More talks are planned throughout this week. The conversations with the U.S. are focused on different topics, including fentanyl, border security and Arctic defence, although the leaders are focused on tariffs. Hillman said it's still unclear whether defence and trade will be part of one deal coming within the next 30 days. Trump has said "many times" that he likes tariffs, Hillman said. "It's up to Canada to demonstrate we can achieve the same goals with the United States through other means that don't necessarily involve these punishing tariffs, especially on strategic goods." WATCH | PM may raise counter-tariffs on U.S. steel, aluminum if deal delayed: Canada to limit steel imports, may hike U.S. counter-tariffs next month 3 days ago Duration 2:20 Prime Minister Mark Carney has announced limits to foreign steel imports in a bid to prop up Canada's steel industry, which has been hit hard by the U.S. trade war. Canada may hike counter-tariffs on U.S. steel and aluminum if a deal isn't reached by July 21. Steel tariffs still at 50% Just days after Canada and the U.S. set a 30-day deadline, Carney signalled he's willing to go higher with Canada's retaliatory tariffs if no agreement is reached. Canada's counter-tariffs on steel will go up or down, depending on trade progress by July 21, in response to U.S. metal tariffs that are now at 50 per cent. Industry Minister Mélanie Joly told CBC Power & Politics host David Cochrane that Canada is taking "measures like [it's] never done" in the free-trade era to protect the steel and aluminum sectors.

CTV News

2 hours ago

• CTV News

Oil rises and U.S. stock futures slide as markets react to U.S. strike on Iran nuclear sites

The facade of the New York Stock Exchange is seen, Wednesday, June 18, 2025, in New York. (AP Photo/Yuki Iwamura) NEW YORK — The price of oil rose and U.S. stock futures fell as global markets react to the U.S. strike against nuclear targets in Iran. The price of Brent crude oil, the international standard, rose 3.9% to US$80 a barrel. U.S. crude rose 4.3% to $77 a barrel. Futures for the S&P 500 fell 0.6%. Treasury yields fell slightly. On Saturday, U.S. forces attacked three Iranian nuclear and military sites, further increasing the stakes in the war between Israel and Iran. The conflict has sent oil prices yo-yoing over the last week, which has in turn caused see-saw moves for the U.S. stock market, because of rising and ebbing fears that the war could disrupt the global flow of crude. Iran is a major producer of oil and also sits on the narrow Strait of Hormuz, through which much of the world's crude passes.