Institutional Investors and Hedge Funds Warn Against Quantum Computing Stocks

IonQ, Rigetti Computing, and D-Wave Quantum face declining institutional ownership amid bubble concerns

Feb. 25, 2026 at 10:06am

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The latest round of Form 13F filings shows that institutional investors and hedge funds are reducing their holdings in pure-play quantum computing stocks like IonQ, Rigetti Computing, and D-Wave Quantum. This suggests Wall Street's savviest investors are wary of the high valuations and limited real-world adoption of quantum computing technology, foreshadowing potential trouble ahead for these high-flying stocks.

Why it matters

Quantum computing is seen as a potential trillion-dollar opportunity, with applications in areas like AI, cybersecurity, and drug development. However, the technology is still in its early stages, and the stocks of companies like IonQ, Rigetti, and D-Wave have been trading at extremely high valuations. The decline in institutional ownership signals that professional investors are growing cautious about the prospects for these companies, which could lead to a broader market correction.

The details

According to 13F data, the percentage of outstanding shares held by institutional investors and hedge funds fell for all three pure-play quantum computing stocks in the fourth quarter of 2025. IonQ's institutional ownership declined from 57.35% to 54.71%, Rigetti Computing's fell from 50.71% to 48.45%, and D-Wave Quantum's dropped from 53.94% to 48.76%. This suggests that Wall Street's savviest investors are growing wary of the high valuations and limited real-world adoption of quantum computing technology, foreshadowing potential trouble ahead for these high-flying stocks.

  • In mid-October 2025, pure-play quantum computing stocks went 'parabolic', with Rigetti Computing posting a trailing 12-month gain of over 6,200%.
  • In mid-October 2025, JPMorgan Chase unveiled a $1.5 trillion, 10-year Security and Resiliency Initiative that highlighted quantum computing as one of 27 sub-areas for financing and/or investment.

The players

IonQ

An American quantum computing company that provides access to its quantum computers through Amazon's Braket cloud service.

Rigetti Computing

A quantum computing company that also provides access to its quantum computers through Amazon's Braket cloud service.

D-Wave Quantum

A Canadian quantum computing company that provides access to its quantum computers through Amazon's Braket cloud service.

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The takeaway

The decline in institutional ownership of quantum computing stocks like IonQ, Rigetti, and D-Wave suggests that Wall Street's savviest investors are growing increasingly wary of the high valuations and limited real-world adoption of this technology. This could foreshadow a broader market correction for these high-flying stocks, as the industry grapples with the challenges of commercializing quantum computing and proving its practical applications.