Quantum Computing Stocks Face Risks from Tech Giants

Pure-play quantum computing companies may struggle to maintain their first-mover advantage as tech giants like Amazon, Microsoft, and Alphabet invest heavily in the space.

Published on Feb. 13, 2026

Got story updates? Submit your updates here. ›

The first-mover advantage for pure-play quantum computing stocks like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. may be short-lived. While quantum computing represents a large global opportunity worth up to $850 billion by 2040, investors are overlooking the biggest risk facing these companies - the ability of tech giants in the "Magnificent Seven" to quickly enter and dominate the market as quantum computing matures.

Why it matters

Quantum computing has the potential to revolutionize fields like drug development, cybersecurity, and AI. However, the pure-play quantum computing companies currently leading the space have unproven business models and are forced to continuously issue new shares to fund operations. In contrast, the cash-rich tech giants of the "Magnificent Seven" are already making major investments in quantum computing and have the resources to quickly expand their presence in the market, potentially leaving the current pure-play leaders behind.

The details

Pure-play quantum computing stocks like IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have seen their share prices surge by as much as 6,200% over the past year as investors have rallied around the potential of quantum computing. However, these companies face significant risks, including the likelihood of an early-stage technology bubble, ongoing share dilution to fund operations, and the looming threat of tech giants like Amazon, Microsoft, Alphabet, and others aggressively investing in and potentially dominating the quantum computing space.

  • In December 2024, Alphabet unveiled its Willow quantum processing unit (QPU).
  • In February 2025, Microsoft debuted its Majorana 1 QPU.
  • In October 2025, Alphabet announced that Willow successfully ran a quantum computing algorithm at a processing speed approximately 13,000 times faster than the speediest supercomputer.

The players

IonQ

A pure-play quantum computing company that has seen its stock price surge in the past year.

Rigetti Computing

A pure-play quantum computing company that has seen its stock price surge in the past year.

D-Wave Quantum

A pure-play quantum computing company that has seen its stock price surge in the past year.

Quantum Computing Inc.

A pure-play quantum computing company that has seen its stock price surge in the past year.

Alphabet

A tech giant that has made significant investments in quantum computing, including the development of its Willow quantum processing unit.

Got photos? Submit your photos here. ›

What’s next

As quantum computing technology continues to mature, it will be important to monitor the investments and strategic moves of the tech giants in the "Magnificent Seven" to see how they impact the pure-play quantum computing companies.

The takeaway

The potential rewards of investing in quantum computing are significant, but the risks are also substantial. Investors should be aware of the threat posed by the cash-rich tech giants, which have the resources to quickly dominate the market as quantum computing becomes more practical and cost-effective for problem-solving.