D-Wave Quantum (QBTS) and Rigetti Computing (RGTI) led a drop in quantum computing stocks as a rout among leading tech and AI stocks bled across into other speculative tech corners of the market.
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Buzz about Chinese AI startup DeepSeek smacked technology shares as investors worried about its ability to make a complex language model at a fraction of the cost of U.S. companies like Google (GOOGL) and OpenAI.
AI and quantum systems are often considered closely correlated, with quantum computing potentially rising to the challenge that AI has created, both in terms of computing power and energy use.
QBTS fell 9% and Quantum Computing (QUBT) declined almost 8%, while shares of RGTI opened down more than 10% before paring losses. IONQ (IONQ) was down almost 3% but briefly rallied.
Nvidia (NVDA), which is seen as the biggest winner from massive AI investments by the likes of Meta Platforms (META) and Microsoft (MSFT), plunged 13% to lead a broad-based rout among high-flying tech names.
DeepSeek shot to prominence in recent days as its free open-source large-language AI model rose to the top of Apple’s app store.
Buzz around the performance of the flagship V3 model and its recently launched R1 model has sent shockwaves through stock markets since the company is building these at a fraction of the cost of rivals.
Researchers at University of California, Berkeley, say the performance of its latest R1 model launched last week is “on par” with OpenAI-o1, despite reportedly costing just $5.6 million to develop.
Independent research indicates DeepSeek may even perform better at a range of functions.
Volatile Ride for Quantum Stocks
It’s been a rocky start to the year following downbeat comments from the CEOs of NVDA and Meta Platforms.
NVDA CEO Jensen Huang first sank quantum computing stocks by saying the technology’s practical use was 20 years away.
This was followed META’s Mark Zuckerberg saying quantum computing is “quite a ways off” from being a “practical paradigm.”
Today, it looks like quantum stocks are being caught up in the broader selloff in speculative tech, leaving QBTS 42% lower in 2025 and RGTI off by 37%.
What Is the Best Stock to Buy in Quantum Computing?
For investors interested in investing in the quantum computing sector, we have rounded up the best stocks that analysts are bullish about using the TipRanks Stocks Comparison tool.
