Institutions are frantically buying Quantum Computing stocks, this time they might get Rekt.

According to the 13F Holdings data, Wall Street institutions went on a buying spree for Quantum Computing concept stocks in Q3.

• IonQ: Institutional Holdings increased by 27.4% to 169 million shares
• Rigetti: Institutional Holdings increased by 31.8% to 164 million shares
• D-Wave: Institutional Holdings increased by 16.1% to 182 million shares
• Quantum Computing Inc.: Institutional Holdings surged by 61.7% to 90.2 million shares.

The price increases of these four stocks over the past year reached 69%, 1720%, 1300%, and 299%, respectively. They look very appealing, but there is a big problem.

The flag of the bubble is flying up

According to the PS valuation based on the estimated sales in 2026, these companies have become outrageous.

• IonQ: PS 92x
• Rigetti: PS 424x
• D-Wave: PS 206 times
• Quantum Computing Inc.: PS 1383 times

On the eve of the internet bubble burst, the PS of leading companies was only 30-40 times. Even with projected revenues for three years, these Quantum Computing stocks far exceed the historical bubble warning line.

The real threat comes from the giants

Microsoft and Google have already developed their own quantum chips, and the cloud services of Amazon and Microsoft are also integrating products from IonQ and Rigetti. Don't be fooled by the leading position of these pure concept stocks; once these tech giants increase their investment, the competitiveness of these startups may collapse in an instant.

Quantum Computing is indeed the direction of the future, but the commercialization of the technology will take many more years. The current valuation has already discounted the expectations for the next 10 years, and this wave of buying by institutions may become another classic case of buying at a high in history.