For three years, the evolution of artificial intelligence (AI) has been the talk of Wall Street. But this isn't the only game-changing technological innovation that has investors opening up their wallets and envisioning pie-in-the-sky addressable markets.
In 2025, a strong argument can be made that nothing has been hotter than quantum computing stocks. Over the trailing year, as of the closing bell on Nov. 3, shares of IonQ (IONQ +8.67%) have surged 294%, Rigetti Computing (RGTI +8.84%) and D-Wave Quantum (QBTS +11.17%) are both higher by 3,080%, respectively, and Quantum Computing Inc. (QUBT +8.32%) stock has skyrocketed 1,260%.
Quantum computing, which utilizes specialized computers and the theories of quantum mechanics to tackle highly complex problems, has the potential to create $450 billion to $850 billion for the global economy by 2040, based on an estimate from Boston Consulting Group. Separately, online publication The Quantum Insider foresees this economic impact reaching $1 trillion by 2035.
Image source: Getty Images.
While quantum computing, on paper, has the runway to be a highly successful technological innovation, pure-play stocks like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. aren't the best way to take advantage of this sizable addressable market. Rather, one historically inexpensive stock stands out as the smartest way to invest in the quantum computing revolution.
History suggests IonQ, Rigetti Computing, and D-Wave Quantum stocks will plunge
Although Wall Street's quantum computing pure-play stocks have been especially hot in recent months, with IonQ and Rigetti Computing beginning to see their specialized computers used on a commercial scale, there are reasons to believe these parabolic moves higher will, eventually, end in tears.
For starters, historical precedent tells us that every game-changing technology and hyped innovation dating back more than 30 years has worked its way through a bubble-bursting event relatively early in its expansion process. This includes the internet, genome decoding, nanotechnology, 3D printing, blockchain technology, and the metaverse, to name some of these key trends.
While there have been plenty of real-world use cases laid out for quantum computers, very few businesses have been commercializing this technology at scale. What's more, there's no evidence that quantum computing solutions are being optimized, or that they're helping businesses generate a positive return on their investments.
NYSE: IONQ
Key Data Points
History shows us that investors have repeatedly overestimated the uptake and utility of new innovations, and they're likely to do the same with quantum computing. All new technologies need time to mature, and this is unlikely to be an exception to the rule. That's terrible news for IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc.
Another very real issue for these companies is their operating performance. With widespread commercialization of quantum computers and solutions still years away from becoming a reality, none of these businesses is expected to be profitable anytime soon.
IonQ, Rigetti, D-Wave, and Quantum Computing Inc. will need to continue raising capital to fund ongoing research that can improve on existing quantum computers. All four companies are likely to lean on dilutive share offerings and/or convertible bonds to raise capital, which can be detrimental to existing shareholders.
But this biggest problem of all might be keeping Wall Street's "Magnificent Seven" away from a clear long-term growth trend. With more cash than these influential businesses know what to do with, the early-stage competitive edge for this pure-play quartet may prove short-lived.
Image source: Amazon.
This historically inexpensive stock is the genius way to invest in the quantum computing revolution
Over the next five to 10 years, quantum computing does have the potential to help solve real-world problems. It can improve weather forecasting, assist healthcare companies with drug development by running molecular interaction simulations, and can even speed up the learning process of AI algorithms.
However, there's going to be a learning curve, with businesses needing time to optimize this technology to suit their needs and those of their customers. This means the smartest way to invest in the quantum computing revolution is to own a stake in a profitable company that already has established operating segments and can devote ample capital to quantum computing solutions as enterprise demand dictates. The genius company that fits this mold is Magnificent Seven member Amazon (AMZN +3.51%).
Most investors are probably familiar with Amazon as the world's leading e-commerce company. According to estimates from Analyzify, Amazon's marketplace accounted for 37.6% of U.S. online retail sales in 2024.
While e-commerce makes up a significant portion of net revenue, the operating margin associated with selling goods online is rather low. The bulk of Amazon's operating income and cash flow derives from its considerably higher-margin ancillary operations, headed by Amazon Web Services (AWS).
Based on estimates from Omdia, AWS accounts for around a third of all global cloud infrastructure service spending. AWS is incorporating generative AI and large language model capabilities for its clients, which is a big reason why this segment has sustained a year-over-year growth rate in the neighborhood of 20%.
NASDAQ: AMZN
Key Data Points
Through the first nine months of 2025, AWS brought in a shade over 18% of Amazon's net sales, but is responsible for 60% of its operating income. This fast-growing segment is pacing $132 billion in annual run rate revenue, and it's still, arguably, in its early stages of expansion.
With Amazon swimming in cash flow from its various operating segments, it's turned to promoting Braket, its quantum computing service that was broadly launched in 2020. This relatively nascent service provides subscribers with access to IonQ's and Rigetti Computing's quantum computers, which allow clients to run simulations or test quantum hardware.
In other words, Amazon is giving investors exposure to the quantum computing revolution, and providing them with a steady floor built atop its No. 1 position in e-commerce and cloud infrastructure services.
To boot, investors paid a multiple of 23 to 37 times year-end operating cash flow to own shares of Amazon stock from 2010 to 2019. With the consensus of Wall Street analysts calling for $19.18 per share in operating cash flow in 2026, Amazon stock can be picked up at a historically inexpensive multiple of 13 times forward-year cash flow.
It's the smartest way to gain exposure to quantum computing without the risk of losing most of your principal in a bubble-bursting event, which is a real possibility with IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc.
