RGTI Stock Tests $15, QBTS Breaks $20 as Quantum Unravels on Weak Revenues and High Valuations
Quantum computing stocks suffered another sharp selloff as escalating Middle East tensions, surging oil prices, and growing doubts over commercialization prospects exposed the sector's weak revenues and increasingly difficult valuation assumptions.
Quick overview
- Quantum computing stocks faced a significant selloff due to rising Middle East tensions and doubts about commercialization prospects.
- Shares of Rigetti Computing and D-Wave Quantum dropped around 8%, reflecting a broader correction in the speculative technology sector.
- Investors are increasingly prioritizing immediate profitability over future growth potential, leading to a reassessment of high valuations in the quantum sector.
- Despite impressive revenue growth reported by some companies, the overall financial performance remains weak, raising concerns about sustainable business models.
Quantum computing stocks suffered another sharp selloff as escalating Middle East tensions, surging oil prices, and growing doubts over commercialization prospects exposed the sector’s weak revenues and increasingly difficult valuation assumptions.
Quantum Stocks Become the Latest Casualties of Risk-Off Markets
Quantum computing shares were among the weakest performers in Monday trading as investors aggressively reduced exposure to speculative technology companies.
Shares of Rigetti Computing and D-Wave Quantum both plunged roughly 8%, extending a correction that has accelerated over recent weeks and erasing a significant portion of the extraordinary gains generated during the previous year.
The latest decline reflects more than simple profit-taking.
Investors are increasingly shifting their focus away from government grants, technological milestones, and ambitious future projections toward more immediate concerns surrounding commercialization, profitability, and realistic revenue generation.
The result has been a rapid reassessment of some of the market’s most aggressively valued technology companies.
For a sector that had become one of Wall Street’s favourite speculative themes, sentiment has deteriorated remarkably quickly.
Strait of Hormuz Fears Trigger Broad Technology Selling
The immediate catalyst behind Monday’s decline was a sharp increase in geopolitical tensions in the Middle East.
Concerns surrounding renewed military activity involving Iran and the United States pushed crude oil prices sharply higher as investors feared potential disruptions to energy supplies moving through the Strait of Hormuz.
The oil spike triggered a broad risk-off move across financial markets, with investors reducing exposure to higher-risk assets and rotating toward more defensive sectors.
Highly speculative growth stocks were among the first casualties.
Quantum companies, which remain heavily dependent on future growth expectations rather than current earnings, proved particularly vulnerable to the sudden shift in sentiment.
As Treasury yields moved higher and risk appetite deteriorated, investors quickly exited some of the market’s most volatile technology names.
RGTI and QBTS Continue to Surrender Earlier Gains
Selling pressure intensified across the entire quantum sector.
Rigetti Computing fell back toward the $15 level while D-Wave Quantum dropped below the psychologically important $20 mark to trade near $18.60.
The declines extend a broader correction that has erased a sizeable share of the gains generated during the sector’s explosive rally in 2025.
The speed of the reversal has highlighted the fragile nature of investor confidence in companies whose valuations remain heavily dependent on future technological breakthroughs rather than present-day financial performance.
While momentum investors drove shares sharply higher during the rally, the absence of meaningful earnings support has made the sector particularly vulnerable once sentiment begins to reverse.
Semiconductor Weakness Spreads Across Global Markets
The quantum selloff was amplified by weakness throughout the broader technology sector.
South Korea’s KOSPI index declined almost 5%, while Japan’s Nikkei 225 lost more than 2% as semiconductor shares sold off across Asia.
The weakness quickly spread into Europe and the United States, dragging down memory manufacturers, artificial intelligence infrastructure companies, and emerging technology firms.
Adding to the negative sentiment, major chipmakers experienced classic sell-the-news reactions despite reporting strong results.
The broad retreat reinforced fears that the technology sector may have become increasingly vulnerable following several years of exceptional gains.
Quantum companies, despite operating in a different segment of the industry, were swept up in the wider retreat from high-growth assets.
Revenue Growth Remains Far Behind Valuations
Perhaps the largest challenge facing quantum companies remains the enormous gap between market valuations and commercial reality.
D-Wave reported revenue growth of 179% during 2025, an impressive figure by almost any standard.
However, total annual revenue amounted to only around $25 million.
For many investors, that number highlights just how early the industry remains in its commercial development cycle.
Rigetti faces an even more difficult challenge.
Despite the dramatic appreciation in its share price over the previous year, the company reported declining annual revenue compared with the prior period.
These figures have forced investors to ask increasingly uncomfortable questions about whether current valuations can realistically be supported without a major acceleration in commercial adoption.
Markets are becoming less willing to pay for potential and increasingly demanding evidence of sustainable business models.
The Downtrend Is Back On
Shares of D-Wave Quantum were on a downward trajectory until October but reversed back then and fall below $13 in late March. However we saw a rebound off the 100 SMA in green in April which revived again in May.
QBTS Chart Weekly – The 50 SMA Turns into Resistance
After a brief recovery above $30, the stock came once again come under pressure in June, continuing the downtrend that has seen it decline nearly 75% from its October peak and is now trading below $20. Meanwhile the RGTI stock couldn’t climb above 30 and also reversed down in June, slipping below the 50 SMA, and is now testing the 100 weekly SMA and is heading toward $15 again.
RGTI Chart Weekly – Testing the 200 SMA
Government Funding Headlines Lose Their Impact
Government support played a major role in driving the quantum rally earlier in the year.
Today, investors appear considerably less enthusiastic.
D-Wave recently secured a $1.56 million grant from the United States National Science Foundation to support participation in fault-tolerant quantum research initiatives.
Rigetti also announced that it could potentially receive as much as $100 million under the CHIPS Act.
However, the proposed funding remains subject to development milestones and currently exists only as a non-binding letter of intent.
The lack of certainty surrounding the timing and size of these programmes has reduced their ability to support valuations.
Markets are increasingly distinguishing between headline announcements and guaranteed revenue streams.
Technological Milestones Are No Longer Enough
Rigetti has continued making meaningful progress on its technical roadmap.
The company recently unveiled its new 108-qubit Cepheus-1 processor and expanded cloud availability through major computing platforms.
From a technological perspective, the achievement represents an important milestone.
Yet investors showed little enthusiasm.
The market’s attention has shifted away from processor specifications and scientific breakthroughs toward questions surrounding commercialization and customer adoption.
The same issue extends across the broader industry.
Despite rapid progress in research and development, most quantum companies remain years away from generating meaningful recurring revenue or achieving profitability.
Strategic Importance Does Not Eliminate Investment Risks
Governments around the world increasingly view quantum computing as a strategic technology with important implications for national security, economic competitiveness, and scientific leadership.
Large amounts of capital continue flowing into the industry.
Major projects such as IBM’s planned quantum foundry in New York demonstrate the growing importance policymakers place on the technology.
However, strategic significance does not automatically translate into successful investment outcomes.
Most publicly traded quantum companies continue operating with limited revenues, uncertain profitability timelines, and business models that remain largely unproven.
As a result, investors appear increasingly unwilling to support premium valuations based purely on long-term possibilities.
The sharp decline in QBTS and RGTI suggests the market may be entering a new phase where technological promise alone is no longer enough.
Until companies can demonstrate stronger commercial adoption, sustainable revenue growth, and a clearer route toward profitability, quantum stocks could remain vulnerable to further corrections as financial reality begins to challenge speculative enthusiasm.
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