Analyze This Trading Metric Before Investing in Quantum Computing Stocks
Quantum computing stocks have shown significant movement in 2025, drawing the attention of investors. On a notable day earlier this week, IonQ announced advances in simulating chemical reactions through a partnership with a leading automotive manufacturer. Following this revelation, IonQ’s stock price surged by 11%, reaching 78.73 during midday trading.
Key Developments in Quantum Computing Stocks
Recently, IonQ disclosed plans to raise $2 billion through a new equity offering. This development comes as the company continues its acquisition spree within the sector. Despite the volatility in the market, IonQ’s stock has risen by an impressive 88% this year.
Performance Metrics of Quantum Stocks
Investors need to pay attention to the average true range (ATR) when evaluating quantum computing stocks. This metric, available on IBD MarketSurge, provides insights into the price volatility of stocks, influencing investment decisions.
- IonQ: ATR rating at 8.98%
- Rigetti Computing: ATR rating at 13.08%
- D-Wave Quantum: ATR rating at 11.83%
- Quantum Computing: ATR rating at 12.63%
Stocks with a higher ATR often experience significant price movements, which can trigger sell rules. In contrast, stocks with lower ATRs usually demonstrate more gradual price changes. IBD recommends focusing on stocks with ATRs of up to 8% for potential buying opportunities.
Market Volatility and Future Indicators
The quantum computing sector has experienced fluctuations, particularly after the Nasdaq composite saw a decline due to global trade concerns. Other notable performances this year include:
- D-Wave Quantum: Shares up by 345%
- Rigetti Computing: Shares up by 233%
- Quantum Computing: Shares up by 24%
Furthermore, Nvidia CEO Jensen Huang’s skepticism regarding the timeline for commercially viable quantum technology has contributed to the sector’s volatility. However, the company has begun increasing investments in quantum startups. Speculation surrounding upcoming U.S. quantum technology initiatives from the Trump administration is also thought to bolster market enthusiasm.
As the quantum computing landscape continues to evolve, investors are encouraged to monitor these stocks closely while utilizing key metrics like ATR to inform their investment strategies.
