Rosenblatt Securities analyst Kevin Garrigan initiated coverage of two leading quantum computing stocks and shared his thoughts on which is currently ahead in the race. Garrigan assigned a “Buy” rating to both stocks and set new Street-High price targets for each. For D-Wave Computing (QBTS) stock, he issued a price target of $30, implying 63.5% upside potential. For IonQ stock (IONQ), he assigned a $70 price target, which implies 65.3% upside potential.
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Between the two players, Garrigan currently calls IONQ the “early leader in the race to scalable quantum advantage.” Meanwhile, he believes that D-Wave Computing is on track to “scaling quantum annealing for real-world optimization.”
Although the analyst remains highly optimistic about the sector, it is worth noting that the quantum computing market is still in its early stages and carries significant risks. Let’s understand Garrigan’s views on both stocks in brief.
IONQ Is the Early Leader in Scalable Quantum Computing
Garrigan believes that IONQ is one of the most attractive ways to gain exposure to the quantum computing market, as he sees potential for multiple winners in the space. He forecasts IonQ will generate more than $100 million in annual revenue by the end of this year, with the potential to double that in 2026. The analyst projects IONQ could reach $1 billion in annual revenue within a few years.
Garrigan highlighted several growth drivers for IonQ, including delivering on its technology roadmap, building a strong quantum computing ecosystem (including networking), and expanding lucrative partnerships and system sales. The analyst’s price target of $70 is based on a 36.6x EV/S (enterprise value/sales) multiple on expected 2030 revenue, discounted back to the present.
Quantum Annealing Gives QBTS a Niche Over Others
Garrigan believes that D-Wave stands out in the fast-growing quantum computing race because it uses quantum annealing. This technology is designed to solve optimization problems by selecting the best possible solution from a set of potential options. He stated that QBTS could outperform both traditional computers and other quantum computers due to its expertise in quantum annealing, particularly for optimization workloads.
He expects QBTS to capture a large share of the quantum annealing market, with revenues growing at more than 66% CAGR (compound annual growth rate) from 2025 to 2030. His optimistic price target is based on strong projected growth and the belief that D-Wave will continue to prove its technology’s usefulness, grow its commercial customer base, and deliver on its product roadmap. Garrigan’s price target of $30 is based on a 68.4x EV/S multiple on expected 2030 revenues (discounted back to present).
Which Is the Best Quantum Computing Stock?
We used the TipRanks Stock Comparison Tool to determine which stock is more favored by analysts. Currently, Wall Street has a “Strong Buy” consensus rating on both stocks, with IONQ offering higher upside potential over the next 12 months.
