Quantum stocks are soaring again – here's why

Quantum computing stocks have soared this week, led by the core four names in the space – IonQ, D-Wave, Rigetti and Quantum Computing plus relative newbie Infleqtion.Here’s why. 

Key drivers behind the rally

NVIDIA's New Quantum AI Models: NVIDIA unveiled the "Ising" family of models this week, an AI-driven, open-source suite of tools designed to accelerate quantum error correction and speed up performance making large-scale quantum computing more practical. The quantum AI models are designed to help researchers and enterprises build quantum processors capable of running useful applications. Ising models will improve calibration and error correction for quantum computers, “two of the most critical challenges in building hybrid-quantum classical systems,” according to Nvidia.

IonQ’s Networking Breakthrough: IonQ announced a "foundational technical milestone”, by photonically interconnecting two independent quantum systems, paving the way for networked quantum computing. This marks the first demonstration of connected, commercial quantum computers, a critical step toward scaling quantum computation beyond a single processor.

“Achieving this photonic interconnect milestone is a pivotal moment in our roadmap as we move from individual quantum processors to distributed, networked architectures,” said Niccolo de Masi, IonQ’s CEO. “Scaling quantum computation beyond the limits of a single chip is essential for realizing a future quantum internet. This demonstration proves that our trapped-ion platform is uniquely suited for the high-fidelity networking required to solve the world’s most complex problems."

DARPA and Commercial Contracts: IonQ secured a contract with the Defense Advanced Research Projects Agency (DARPA) and is posting decent growth, with revenue exceeding $100mn annually.The company also secured fresh contract wins from Air Force Research Lab and the University of Maryland, and has released a new set of benchmarks

Quantum Buzz: "If I was Nvidia, I'd be shaking in my boots," D-Wave Quantum CEO Alan Baratz told Yahoo Finance at the Semafor World Economy Summit, which took place on April 14, which was also World Quantum Day. Baratz was also talking at the QED-C Quantum Summit the following day. It’s been a busy week for the quantum computing industry and clearly there’s a buzz.

New entrants: Infleqtion, one of the new players in the space, was given buy ratings from Citi and BTIG. Citi gave it a Buy rating and a $20 price target, while BTIG initiated coverage on Infleqtion with a Buy rating and a price target of $22. Infleqtion recently issued 2026 revenue guidance of $40 million.

The quantum computing market is expected to surpass $11 billion in 2030, according to analyst firm Resonance. Whilst there is clearly a market for this technology, these stocks have gravely disappointed investors in the past. Shares of the core four still trade ~50% off their highs from last year when excitement about the technology was at its peak.