A hot new trend strutted down Wall Street toward the end of last year under the banner of quantum computing stocks. These companies are at the forefront of a technological revolution, building computers that harness quantum mechanics to process information at speeds traditional machines can only dream of. If successful, they could reshape entire industries in ways we’re just beginning to imagine.
Practical applications and profitability are still likely years away, although there is ongoing debate about exactly how many years. Nvidia CEO Jensen Huang, for instance, has said it could be 20 years until quantum computers become useful. Bill Gates, however, disagrees. “There is the possibility in the next three to five years that one of these techniques would get enough true logical Qubits to solve some very tough problems,” the Microsoft founder and billionaire said.
Another billionaire who seems to be betting on the potential of quantum computing is Israel Englander, Chairman and CEO of Millennium Management. His $69.5 billion hedge fund boasts a near-legendary track record, with only a single losing year since its founding in 1989.
So, it’s safe to say Englander knows what he’s doing – and lately, that includes loading up on shares of leading quantum computing names: Rigetti Computing (NASDAQ:RGTI) and D-Wave Quantum (NYSE:QBTS).
Let’s get the lowdown on these names and find out why Englander has been pulling the trigger on the pair. With help from the TipRanks database, we can gauge Street sentiment toward these trendy stocks.
Rigetti Computing
Talking of hot stocks, Rigetti Computing jumped right to the front of the quantum computing queue during the closing period of last year and 2025’s early stages. Shares exploded by more than 1,500% with the Berkeley, California-based firm viewed as one of the leaders in this nascent space.
So, what’s all the fuss about? Established in 2013 by physicist and leading quantum computing figure Chad Rigetti, Rigetti Computing focuses on developing quantum computers using superconducting processors. Unlike many competitors, Rigetti controls the entire development process – designing and fabricating quantum chips, integrating control systems, and creating software tools to support quantum programming. The company claims that its Fab-1 facility is the world’s only specialized quantum computing fabrication facility, which could provide the company with a competitive edge in this emerging field. Additionally, its QCS (Quantum Cloud Services) platform allows users to harness quantum computing power via public, private, or hybrid cloud environments.
Rigetti has also forged key partnerships with government agencies to push the boundaries of quantum computing. In September 2023, it landed a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract with the Air Force Research Lab Information Directorate. The following month, it joined DARPA’s IMPAQT program, which aims to develop quantum algorithms for tackling complex optimization challenges, thereby making quantum computing more practical for real-world applications.
Like other quantum names, it’s all about potential here, with revenues still not all that meaningful – the total haul in Q3 reached $2.4 million. However, Englander must have faith in that potential as during Q4 he upped his stake considerably with the purchase of 1,417,666 shares; at the current share price, the holdings are worth about $15 million.
The company also has the support of Alliance Global analyst Brian Kinstlinger, who thinks that big catalysts are coming.
“Awards for the DARPA Quantum Benchmarking contract are expected in February, and we believe RGTI is positioned to be one of the winners,” Kinstlinger said. “We expect multiple awardees and that given the competitive procurement, selection would be validation of leadership positioning. In addition, we expect the Quantum Re-Authorization Act to provide $2.7 billion in funding for federal agencies that will result in further government R&D programs. Although Google and IBM are ahead in terms of fidelity, RGTI is catching up and has successfully begun to tile chips that position the company to more quickly and successfully scale qubits.”
To this end, Kinstlinger rates RGTI shares a Buy accompanied by a $15 price target, pointing toward 12-month returns of ~40%. (To watch Kinstlinger’s track record, click here)
The 4 other recent analyst reviews are also positive, making the consensus view here a Strong Buy. At $15.25, the average target suggests shares will gain ~42% over the one-year timeframe. (See RGTI stock forecast)
D-Wave Quantum
Similar to Rigetti, D-Wave Quantum shares also went on a turbocharged run at the end of 2024. Founded in 1999, the company is considered a pioneer in quantum computing, and is best known for its focus on quantum annealing, a specialized approach designed for solving complex optimization problems.
While D-Wave’s annealing-based approach differs from the more general-purpose gate-based quantum systems pursued by companies like IBM and Google, it has already found practical applications. Major corporations, such as Volkswagen, Toyota, and Lockheed Martin, have explored using D-Wave’s technology to optimize supply chains, traffic flow, and defense-related computations. In fact, D-Wave was the first company to sell a commercial quantum computer with the D-Wave One being sold to Lockheed Martin in 2011. The company also made headlines recently with the announcement that Germany’s Jülich Supercomputing Centre has purchased a D-Wave Advantage annealing quantum computer, marking the first time a high-performance computing center has acquired this system.
All this must have gotten Englander excited. He opened a new position in QBTS in Q4, with the purchase of 2,273,530 shares. These are currently worth $16.5 million.
D-Wave could also have a catalyst ahead. The expected passage of the NQI (National Quantum Initiative) Reauthorization Act is set to open doors for more on-premises hardware sales to National Labs. While beforehand the bill did not recognize annealing as a valid quantum computing approach, thereby preventing D-Wave from being involved in the program, the revised language now acknowledges annealing, and funding can be directed toward exploring its capabilities.
This development informs Benchmark analyst David Williams’ bullish thesis for D-Wave. The 5-star analyst writes: “We believe the company is positioned to benefit from the NQIA over the next five years and see room for upside if the firm gains traction in hardware sales. Additionally, we expect the sales-to-deployment velocity to accelerate as the restructured go to market strategy ramps, efficiency improvements are captured through iteration, and repurposing of software/application IP blocks.”
These comments form the basis for Williams’ Buy rating while his $8 price target suggests the shares will climb 10% higher over the coming months. (To watch Williams’ track record, click here)
D-Wave also gets the Street’s full support, claiming a Strong Buy consensus rating, based on a unanimous 5 Buys. The average target stands at $8.63, implying the stock will gain 19% in the year ahead. (See QBTS stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.