2026 Market Bubble Burst: Two Popular Stocks Predicted to Crash
The quantum computing sector is witnessing a dramatic surge, but some stocks are reaching unrealistic valuations. Two key players in this field, Rigetti Computing and D-Wave Quantum, present concerning investment risks as the market approaches 2026. Valuations for these stocks are exorbitantly high, and analysts predict a crash may be imminent.
Understanding the Quantum Computing Bubble
Rigetti and D-Wave have seen massive increases in their stock prices since January 2023—3,500% and 1,700%, respectively. However, these remarkable rises appear to be out of sync with market realities, raising questions about their sustainability.
Experts anticipate the quantum computing market will grow at an average of 21% annually, reaching $4 billion by 2030. In stark contrast, the artificial intelligence sector is expected to soar by 36% annually, hitting $1.8 trillion in the same timeframe. This disparity highlights the precarious position of quantum stocks compared to AI investments.
The State of Quantum Computing Technology
Despite the promise of quantum systems, the technology required for practical applications remains a distant goal. The essential component, known as qubits, must operate in error-corrected environments to be useful. Large-scale, fault-tolerant quantum computers are estimated to be at least a decade away. Experts project that 10,000 to 1 million qubits are necessary for significant computations, yet no company has successfully achieved this level of capability.
- Market cap of Rigetti: $8.5 billion
- Current price of Rigetti stock: $25.84
- Price-to-sales ratio: 1,025
- D-Wave stock price-to-sales ratio: 325
Analyzing Rigetti Computing
Rigetti operates specializing in superconducting quantum computing, which cools circuits to near absolute zero. This method allows it to create qubits efficiently. The company is noted for being the first to introduce multichip quantum processors, which link small chips to enhance performance. However, Rigetti’s roadmap indicates it will not reach 1,000-qubit systems until late 2027. Its current valuation, significantly higher than comparable companies, raises alarms for potential investors.
Examining D-Wave Quantum
D-Wave also utilizes superconducting circuits but focuses primarily on quantum annealers. These systems solve optimization problems effectively, despite limitations in running a wide array of quantum algorithms. D-Wave currently claims nearly 5,000 physical qubits, outpacing many competitors. Nonetheless, its valuation remains questionable with a price-to-sales ratio of 325, particularly given the projected slow growth of quantum computing sales.
Conclusion: The Future of Quantum Stocks
The lofty valuations of Rigetti and D-Wave may soon face reckoning as analysts warn of an impending market bubble. With practical quantum computing capabilities still years away, investors should approach with caution. A major market correction is likely as the reality of technological advancements sets in.
The 2026 market bubble burst in quantum computing may reshape investment strategies as stakeholders navigate a challenging valuation landscape.
