A new analysis from Northern Capital Markets puts a clear focus on quantum computing stocks, with D-Wave getting a surprise downgrade.
• Northern Capital paints a differentiated picture of the quantum computing industry
• IonQ and Xanadu are the favorites
• Reticence regarding other industry players
The euphoria surrounding quantum computing continues – but not all listed players benefit equally from the positive mood. A current analysis by the US institutional broker-dealer Northern Capital Markets sets clear priorities and focuses on two companies in particular.
IonQ and Xanadu in the focus of analysts
According to a report from Barron’s, Northern Capital Markets analyst Nehal Chokshi has reassessed several quantum companies and identified clear favorites. Accordingly, IonQ and Xanadu Quantum Technologies are considered the most promising stocks in the sector.
IonQ is particularly highlighted. The company is considered a leading candidate to achieve widespread practical use of quantum computers by 2030, according to Chokshi. The decisive factor is a very high technical quality: the “99.99 percent two-qubit gate fidelity”, a central performance indicator that indicates how reliably a quantum system calculates the correct result. The rating is correspondingly optimistic: Northern Capital Markets rates the share “Outperform” and sees a price target of $55.
Xanadu is also viewed positively. The company, which relies on photonic quantum computers, also receives an “outperform” rating with a price target of $43.
Technological approach as a differentiator
According to Barron’s, a key reason for the positive assessment of Xanadu is its technological approach. The company works with photonic systems that can operate at room temperature and enable integrated error correction. At the same time, however, the analyst also points out existing challenges: photonic systems continue to suffer from photonic loss – the sudden disappearance or absorption of photons, which can make scaling difficult.
Northern Capital Markets also sees potential in other companies. Quantum Computing Inc. continues to be supported, particularly because of its photonic architecture based on thin lithium niobate layers, according to Barron’s.
D-Wave and Rigetti only second choice
The assessment for other well-known names in the industry is much more cautious. Both D-Wave Quantum and Rigetti Computing are only rated “Market Perform”.
At Rigetti, the analysts do not yet see a clear positioning in the market. D-Wave, on the other hand, has traditionally focused on so-called annealing quantum computing and has only recently tried to get back into gate-based systems. However, it is precisely this step that is viewed critically: According to Barron’s, Chokshi questions the timing of this strategic realignment. The analyst is quoted as saying that D-Wave’s market opportunities are considered limited “if its recent foray into gate-based quantum computing proves to be too late.”
At the same time, Chokshi acknowledges that D-Wave is showing operational progress. According to Barron’s, he sees the adjusted gross margin of 86 percent in 2025 as an indication of existing market demand.
Classification: What does this mean for investors?
Northern Capital Markets’ assessments reflect an industry that remains in its early stages of development. While individual companies advance technologically, uncertainties remain around scalability, commercialization and business models.
What this means for investors is that the quantum computing sector remains a high-risk segment in which the selection of individual stocks is crucial. According to Northern Capital Markets, the opportunity potential is currently concentrated in a few companies with a clear technological perspective – in particular IonQ and Xanadu. At the same time, the more cautious assessment of D-Wave and Rigetti shows that not every established name should automatically be among the winners.
Investors should therefore carefully distinguish between technological approaches and market positioning – and be aware that even the favorite stocks are still characterized by considerable uncertainty.
Thomas Zoller, editorial team at finanzen.net
This text is for informational purposes only and does not constitute an investment recommendation. finanzen.net GmbH excludes any claims for recourse.
By the way: D-Wave Quantum and other US stocks can even be traded on finanzen.net ZERO until 11 p.m. (without order fees, plus spreads). Open a depot now for free and secure a new customer bonus!
Selected leverage products on D-Wave Quantum
With knock-outs, speculative investors can participate disproportionately in price movements. Simply select the lever you want and we will show you suitable open-end products on D-Wave Quantum
The leverage must be between 2 and 20
Advertising
Image sources: T. Schneider / Shutterstock.com
