After a powerful second quarter rally, quantum computing stocks have faced sharp selling pressure throughout July as investors lock in gains.
Pure-play names including Rigetti Computing (RGTI), Quantum Computing Inc. (QUBT), D-Wave Quantum (QBTS), and IonQ (IONQ) have all pulled back significantly in recent weeks.
Zacks’ short-term price targets continue to imply triple-digit upside for several of these companies despite the recent turbulence, underscoring Wall Street’s enduring optimism.
The July selloff appears driven more by macroeconomic and market-wide factors than by any meaningful deterioration in company-specific fundamentals.
Investors grew increasingly cautious about elevated valuations across AI- and quantum-related stocks, with concerns mounting over the sustainability of surging AI infrastructure spending.
The Defiance Quantum ETF (QTUM), which offers diversified exposure to quantum computing and enabling technologies, declined nearly 12% between June 1 and July 23, reflecting broad-based sector selling.
On the macroeconomic side, the Institute for Supply Management reported that the Manufacturing PMI eased to 53.3 in June from 54.0 in May, remaining above the 50 expansion threshold for the sixth consecutive month.
The quantum computing industry’s long-term investment thesis remains intact, with governments and enterprises continuing to increase spending on quantum technologies across optimization, cybersecurity, artificial intelligence, and drug discovery.
Most quantum pure-plays trade at levels implying years of future execution, making them highly sensitive to shifts in interest-rate expectations and overall market sentiment.
Rigetti shares have declined 42.1% since June, yet the company reported revenue growth of nearly 199% year over year in the first quarter of 2026, driven by increased government and commercial activity.
The company maintained approximately $569 million in cash, cash equivalents, and available-for-sale investments, while management reiterated plans to launch its 108-qubit Cepheus-1 system in 2026.
For the second quarter of 2026, Rigetti is projected to report earnings growth of 40% on revenue growth of 173%, according to Zacks estimates.
The average price target of $31.00 for RGTI represents an increase of 108.8% from its last closing price of $14.85, and the stock carries a Zacks Rank of 3 (Hold).
Quantum Computing Inc. shares have lost 36.6% since June, though the company reported first-quarter 2026 revenues of $3.7 million, up sharply from just $39,000 a year earlier.
That revenue surge was primarily driven by contributions from the Luminar Semiconductor and NuCrypt acquisitions, which expanded QCi’s photonics and quantum technology capabilities considerably.
QCi ended the quarter with $1.4 billion in cash, cash equivalents, and investments, providing significant financial flexibility to support ongoing product development and commercialization efforts.
For the second quarter of 2026, QUBT is projected to report earnings growth of 16.7% on revenue growth of a remarkable 7,733%, reflecting the transformative impact of its recent acquisitions.
The average price target of $18.33 for QUBT represents an increase of 133.2% from its last closing price of $7.86, and the stock also carries a Zacks Rank of 3.
Both companies appear well-positioned to capitalize on accelerating commercial quantum adoption even as near-term macro-driven volatility continues to weigh on share prices.
Investors willing to look past the current correction may find that the fundamental growth trajectories at Rigetti and QCi remain compelling ahead of their upcoming quarterly reports.
