After weeks of excitement in the quantum computing space, reality hit hard in late October.
In a recent episode of Market on Close, co-hosts “Twitter Tom” and John Rowland discussed the sudden selloff in quantum stocks — and how one classic tech name, IBM (IBM), might actually be the most stable play in the space.
Quantum Stocks in Freefall
It’s been a rough stretch for the quantum computing industry.
“Quantum stocks have been dumping hard,” Tom noted. “A few notable ones lost more than a third of their value in just five days.”
Names like IonQ (IONQ), Rigetti (RGTI), and D-Wave (QBTS) — all favorites of speculative traders — were rocked by extreme volatility after a brief rally sparked by a rumored government funding announcement.
That rumor, suggesting a potential $10 million in federal investment across a handful of quantum startups, was later dismissed by the administration, leaving many stocks reeling.
“Some of these companies are burning $100 million a year,” John observed. “So $10 million would barely cover a month of operations.”
The Problem with Pure-Play Quantum Stocks
The allure of quantum computing is clear. The technology could reshape industries from cybersecurity to pharmaceuticals.
But right now, most “pure-play” quantum stocks are pre-revenue companies with limited commercial traction, small market caps, and high cash burn.
They’re priced more on hope than earnings, creating a classic recipe for volatility.
IBM: The Quiet Giant of Quantum Computing
While speculative startups chase headlines, old-school tech stock IBM has quietly been building real infrastructure.
“IBM’s been in this space for years,” John said. “If you think about Watson, that was really the beginning of their quantum journey.”
Today, IBM operates more quantum computers than any other company in the world and provides access to the technology for academic institutions and enterprises through its IBM Quantum Network.
It’s not just a moonshot; it’s a diversified business backed by over $60 billion in annual revenue and a 2% dividend yield.
“If I told investors they could get quantum exposure through a company with a $260 billion market cap and a dividend,” John added, “I think most would jump at it.”
Balancing Innovation with Stability
IBM’s story highlights a valuable lesson for investors: You don’t always need to buy the riskiest stock in an emerging trend to profit from it.
While stocks like IonQ, Rigetti, and D-Wave capture speculative upside, IBM offers exposure to the same quantum innovation — but with established earnings, cash flow, and dividends to help cushion volatility.
That blend of innovation and income could make IBM a compelling “pick-and-shovel” play for long-term investors who want to participate in quantum without the rollercoaster.
Where to Track Quantum & AI Opportunities
You can explore opportunities in both the speculative and stable sides of the quantum subsector on Barchart:
Whether you’re exploring high-growth tech or steady dividend payers, Barchart’s watchlists and screeners allow you to filter by dividend yield, market cap, performance, and more.
Final Takeaway
Quantum computing may still be years from profitability, but the infrastructure to support it is being built today.
“IBM’s not chasing the hype,” John concludes. “They’re building the future — and getting paid while doing it.”
Watch the Clip: 1 Blue-Chip Quantum Stock to Watch
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On the date of publication, Barchart Insights did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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