Which Quantum Computing Stock Is Wall Street Most Bullish About: D-Wave Quantum, IonQ, or Rigetti?

How do you determine which stock is the best pick in a given market? Some investors turn to Wall Street analysts for their opinions. After all, these analysts are paid big bucks to thoroughly research the stocks they cover. And a lot of research is required in a complex field like quantum computing.

If you’re considering investing in up-and-coming quantum computing stocks D-Wave Quantum (QBTS 0.49%), IonQ (IONQ +1.73%), or Rigetti Computing (RGTI +3.53%), it could be helpful to know what analysts think. Which of these stocks is Wall Street most bullish about?

Rising quantum computing stars with different approaches

While D-Wave, IonQ, and Rigetti are rising stars in the development of quantum computers, each company is taking a distinct approach. Their technological strategies could ultimately determine which of them achieves tremendous success or flames out.

D-Wave uses quantum annealing in the development of its quantum computers. This method utilizes superconductors, which exhibit zero electrical resistance at extremely low temperatures. One major plus of D-Wave’s quantum annealing technology is that it already markets useful quantum computers. The key downside, however, is that the technology is geared toward specific applications, such as optimization and search, rather than general-purpose computing.

IonQ is the leader in developing quantum systems based on a trapped-ion architecture. This architecture involves trapping ions of a rare-earth metal called ytterbium. The company uses these trapped ions to create qubits, which are used to construct logical gates for executing algorithms. IonQ’s trapped-ion approach requires less cooling than superconducting approaches. Its error correction rate is also superior to other methods.

Like D-Wave, Rigetti Computing employs superconductors to develop quantum computers. Instead of using quantum annealing, though, Rigetti creates superconducting qubits to construct logical gates. The company’s Cepheus-1-36Q currently ranks as the world’s largest multi-chip quantum computer.

What Wall Street thinks about D-Wave, IonQ, and Rigetti?

After soaring earlier this year, shares of D-Wave Quantum, IonQ, and Rigetti Computing have plunged at least 50% below their peaks since last month. Despite their recent declines, Wall Street remains bullish about all three of these quantum computing stocks.

Six of the nine analysts surveyed by S&P Global (SPGI +0.55%) in November who cover IonQ rated the stock as either a “buy” or “strong buy.” The other three analysts recommended holding the stock. The consensus 12-month price target for IonQ reflects a potential upside of 72%.

Enthusiasm also runs high for Rigetti. Six of the seven analysts surveyed by S&P Global in November gave the stock a “buy” or better rating, with the sole outlier recommending holding shares. The average price target for Rigetti is 74% above the current share price.

However, Wall Street appears to be most bullish about D-Wave Quantum. Nine out of 10 analysts assigned “buy” or “strong buy” ratings to the stock. The consensus price target reflects a potential upside of 85%. There’s one fly in the ointment, though: The lone contrarian analyst thinks D-Wave will underperform over the near term.

Other quantum computing stocks that Wall Street likes

Investors don’t have to limit their horizons to only D-Wave Quantum, IonQ, and Rigetti Computing. There are plenty of other quantum computing stocks to consider. Wall Street likes several of them.

While only three analysts cover Quantum Computing Inc. (QUBT 0.68%), two of them are highly bullish about the stock, with one recommending holding it. The average 12-month price target for Quantum Computing Inc. is 130% above the current share price.

Investors who are skittish about buying shares of speculative quantum computing stocks that remain unprofitable might prefer Microsoft (MSFT 1.48%). The tech giant has developed a promising approach to building quantum computers using topological superconductors. It’s also a Wall Street darling. All but one of the 58 analysts surveyed by S&P Global this month rated Microsoft as a “buy” or “strong buy.” The consensus price target reflects a potential upside of roughly 31%.