Should You Buy These 4 Quantum Computing Stocks Before 2027?
2026-10-08 15:21
•Chris Neiger •The Motley Fool
•• ••••• Axe Cap view
Quantum Computing Stocks: A Risky Bet Before 2027
Pure-play quantum computing stocks remain speculative with no clear path to profits, while IBM offers a safer but less exciting investment.
Quantum computing promises a huge market in the future, but patience is crucial—especially for South African investors eyeing local impact. The pure-play quantum names like IonQ, Rigetti, and D-Wave are burned by massive losses and sky-high valuation multiples without meaningful revenues yet. Their timelines for profits stretch well beyond 2027. These stocks trade at price-to-sales ratios unheard of in traditional tech, which is a huge red flag. IBM, with its quantum tech tucked inside a much larger business, is a different story. It is profitable, trades at reasonable multiples, but quantum's influence there remains distant and uncertain. For investors on the JSE, the rand’s current volatility (USD/ZAR trading near 19) and global tech uncertainty suggest staying cautious. South African listed tech giants like Naspers and Prosus do not have direct exposure to quantum yet but are better proxies for global tech risk. Betting hard on quantum stocks now feels speculative and best left to those with a very high risk tolerance. This view might be wrong if one of these companies cracks the code and commercializes quantum much faster than expected. this is just our opinion and not financial advice
Avoid pure-play quantum stocks and trim speculative tech exposure in the short term; consider holding IBM cautiously but watch USD/ZAR closely for currency risk. Focus instead on established JSE names with clearer earnings and cash flow.
- IBM
- USD/ZAR
- Naspers
- Prosus
- Faster-than-expected commercialization of quantum technology boosting valuations
- Rand weakening sharply increasing costs for local investors exposed to USD tech stocks
6/10
The article examines four quantum computing stocks—IonQ, Rigetti Computing, D-Wave Quantum, and IBM—ahead of the potential $100 billion market by 2035. While all four companies have sufficient cash reserves to continue operations, the pure-play quantum stocks (IonQ, Rigetti, D-Wave) remain unprofitable with extremely high price-to-sales ratios and uncertain paths to commercialization. IBM, as a diversified tech company with quantum computing initiatives, offers a lower-risk alternative but has underperformed the market recently.
Our take is based on reporting first published by The Motley Fool.