Shares of quantum computing firms were among the biggest losers on Wall Street on October 22, as markets witnessed a broader tech-sector pullback. D-Wave Computing (QBTS) plunged 15.2%, IonQ Inc. (IONQ) dropped 6.8%, and Rigetti Computing (RGTI) declined nearly 9%.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
These declines came despite a strong year-to-date rally in quantum stocks. In 2025, the sector has surged on the back of major institutional investments, real-world commercial milestones, and strong support from governments and corporations.
U.S. Policy Shifts Impact the Quantum Sector
The Trump administration is reportedly considering placing curbs on software exports to China, including everything from advanced computing systems to artificial intelligence tools. This news prompted investors to pare back positions in companies exposed to global supply chain risks, leading to a tech sell-off.
Quantum computing companies rely on global partnerships for research and hardware. Stricter export rules could block access to key technology and hurt international sales, likely causing the recent stock drop.
Meanwhile, The Wall Street Journal reported yesterday that the U.S. government is considering taking equity stakes in quantum computing companies in exchange for federal funding. The move follows a similar deal with chipmaker Intel (INTC), in which the government agreed to take a 10% stake in exchange for converting almost $9 billion in previously awarded grants into equity.
Google’s Willow Chip Achieves Quantum Breakthrough
Alphabet’s (GOOGL) Google announced a quantum breakthrough, which may have weighed on quantum stocks. The tech giant announced that its Willow quantum chip achieved the first verifiable quantum advantage, running the Quantum Echoes algorithm 13,000 times faster than the world’s fastest supercomputer.
This marks a key step toward real-world quantum computing applications in medicine and materials science, with the results being verifiable by other quantum computers or experiments.
However, while this development validates the enormous potential of quantum computing, it also sets a much higher performance bar, intensifying competition for startups like IonQ, Rigetti, and D-Wave.
Which Is the Better Quantum Computing Stock?
We used the TipRanks Stock Comparison Tool to determine which stock is currently favored by analysts.
All three stocks have earned Wall Street’s “Strong Buy” consensus rating, with IONQ stock offering the highest upside potential over the next twelve months.
