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Amid broader market selloffs today due to tariff uncertainties and overall bearish sentiment, quantum computing stocks are experiencing significant declines. Shares of major quantum computing companies fell by up to 6% as investors shifted towards safe-haven assets better suited for a potential recession. Unilever, Proctor & Gamble, and Johnson & Johnson saw their shares rise, while Quantum Computing Inc. and Rigetti Computing lost about 6% each.
Markets Shun Quantum Computing Stocks, Flocking to Safe-Haven Equities as September Trading Begins
Among the four major quantum computing stocks—companies that either manufacture quantum hardware or provide it—Quantum Computing Inc. and Rigetti Computing suffered the most. As of late afternoon, Quantum Computing Inc.’s shares were down 5.6%, while Rigetti Computing’s fell by 5%. Both had earlier lost close to 6% amidst a broader risk-off sentiment, which coincided with rising Treasury yields, deterring investors from risky sectors.
IonQ Inc. and D-Wave Quantum Inc., the other two major quantum computing companies, experienced milder losses but were still in the red. IonQ’s shares dropped by 35 basis points, while D-Wave recovered its losses during the day and was down just 15 basis points by late afternoon.
Earlier, both firms opened sharply lower as investors adjusted their positions ahead of key data releases due later this month. The performance divergence among quantum computing stocks seems to stem from their product offerings. While IonQ and D-Wave provide quantum software resources, which are more profitable and can maintain demand even in a recessionary environment, Rigetti and Quantum Computing focus on hardware.
By late afternoon, the quantum computing firms with software exposure had turned positive just before trading closed, indicating investors’ willingness to bet on quantum computing software. Over the past year, these stocks have experienced significant volatility. They surged in December after Google’s Willow chip claimed to significantly reduce calculation times for complex problems compared to supercomputers. However, they declined in January when NVIDIA CEO Jensen Huang predicted that quantum computing might not deliver short-term results.
Year-to-date, the Defiance QTUM ETF, which includes several of these stocks, has gained 13.9% but lost 1.4% during today’s trading session.
