Quantum Computing stocks up in morning trading. Rigetti Computing up 22%; D-Wave Systems Inc. up 16%; Quantum Corp up 12%; Quantum Compuiting up 4%.
Quantum computing stocks have become the talk of the town after several major updates in the space, including a "mind-boggling" quantum computing chip by Google, which has led to Wall Street analysts also taking note of the companies in the segment.
Shares of quantum computing related stocks have been surging this year. Year-to-date, Quantum Computing Inc. has skyrocketed over 1,830%, Rigetti Computing has soared over 851%, and D-Wave Systems Inc. has gained more than 632%. IonQ has added more than 258%, while Arqit Quantum Inc. has jumped over 157% (data as of Dec. 20).
Much has happened in the quantum space. Earlier this month, Alphabet's $(GOOG)$ $(GOOGL)$ unit Google unveiled a quantum computing chip, known as Willow — which is capable of handling complex calculations in a span of five minutes, while the world's most powerful supercomputers would need 10 septillion years.
Last month, Amazon Web Services $(AMZN)$ announcing its Quantum Embark Program also helped the stocks to skyrocket., while earlier this week, Hoboken, N.J.-based Quantum Computing (QUBT) recently saw a contract from the National Aeronautics and Space Administration, or NASA.
Wall Street analysts have also jumped into the debate about quantum computing, and have largely started with bullish views with a hint of caution.
D.A. Davidson began coverage of IonQ (IONQ) with a Buy rating and $50 price target. The analysts said they believe IonQ represents a compelling pure-play investment positioned to capitalize on quantum computing's rapid growth, driven by the growing inadequacy of classical computing for solving complex problems.
The firm said that by advancing hardware, networking, and software simultaneously, IonQ is emerging as a full-stack quantum computing leader which is poised to address the next generation of computational workloads.
However, D.A. Davidson said that IonQ's rating initiation was its inaugural coverage under its DaVinci initiative, in which the firm uses an early-stage venture approach focusing on technology and opportunity over financials and valuation metrics, making these recommendations far more speculative than the rest of its coverage.
Analyst David Williams from Benchmark reiterated the firm's Buy rating on IonQ and raised the price target on the shares to $50 from $20, saying that he sees many interesting areas in quantum to participate, but few as attractive as IonQ.
Berkeley, Calif.-based Rigetti Computing was initiated at Craig-Hallum with a Buy rating and $12 price target. Analysts led by Richard Shannon said Rigetti and other quantum computing names, in the recent weeks, have been caught up in a retail-driven fervor. The analysts noted that this environment creates risks for investors in the near-term, which they do not downplay, but provided other perspectives too.
The analysts think there is scarcity value in the public markets for quantum computing plays. As such, they think, Rigetti and quantum computing deserve a place in investors' portfolios today.
Quant Rating gives Rigetti a Strong Buy and so does the average Wall Street analysts' rating. The Seeking Alpha authors' average rating is Hold.
Benchmark's Analyst David Williams increased D-Wave Quantum's price target to $8 from $3. The analyst, among other things, said that D-Wave is positioned to benefit from the National Quantum Initiative Reauthorization Act over the next five years and sees room for upside if the company gains traction in hardware sales.
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