Wedbush initiates quantum stocks coverage, favors these 3 names

Investing.com -- Wedbush has launched coverage of the quantum computing sector, arguing the technology is moving steadily from research toward early commercial applications.

The brokerage initiated coverage on IonQ (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), and D-Wave Quantum (NYSE: QBST) with Outperform ratings, while starting Quantum Computing (NASDAQ: QUBT) at Neutral.

“Quantum computing remains in its nascent stages, but we view it as a transformational technology with significant long-term potential which we believe will ultimately represent the next frontier of computing,” analyst Antoine Legault said in a note.

He expects quantum spending to rise from a very small base as the technology matures, estimating that quantum systems could account for just under 2% of total compute expenditures by 2030 across the four companies under coverage.

Legault said the shift from research use cases toward commercial applications should support a gradual acceleration in revenue over the rest of the decade.

“The combination of significant TAM growth, real-world benefits from optimization, and potential energy efficiencies make quantum a generational investment theme,” the analyst wrote.

Much like earlier transformative technologies, shareholder value creation is likely to improve as costs decline and processing power increases, he added.

Legault also pointed to rising strategic importance, particularly in the context of global competition.

Wedbush expects U.S. government support for domestic quantum companies to increase, citing national security considerations and a desire to narrow the funding gap with Europe and Asia.

Discussions with industry participants support the view that public funding will play a larger role in accelerating development, Legault said.

While the timing of broader traction “remains a question mark,” he said, growing commercial activity and progress across different quantum modalities point to “a positive inflection” as the technology moves from research toward real-world applications.

Over time, Wedbush expects quantum computing to remain part of a hybrid stack, stressing that “classical memory and processors are not going away,” with wider adoption tied to advances in error correction, which Legault describes as “the key to scaling” and unlocking practical quantum advantage.

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