The Trump administration is in talks with quantum computing companies D-Wave, IonQ, and Rigetti for equity stakes in exchange for federal funding. Grand View Research predicts businesses will spend 600 times more on cloud computing than quantum computing by 2030.

D-Wave, IonQ, and Rigetti burned up to six times more cash than revenue in the past year and have expensive valuations. The administration has already invested in Intel and minerals companies, turning focus to quantum computing.

Quantum computing is still experimental and may not be useful for most organizations today. Practical applications are 5-10 years away, with the industry forecasted to be worth $4 billion by 2030.

Valuations for D-Wave, IonQ, and Rigetti are sky-high, with PS ratios far exceeding industry standards. Even with projected sales growth, stocks would remain overvalued.

Investors should wait for better buying opportunities in the quantum computing industry, as valuations are inflated. The industry is expected to grow, but mainstream use cases are still years away.

Consider waiting for a potential market correction before investing in Rigetti Computing. The Motley Fool’s Stock Advisor team has identified other stocks with potential for high returns in the coming years.

Read more at Nasdaq: Quantum Computing Stocks D-Wave, IonQ, and Rigetti Talk With Trump Administration About Equity Stakes. Is It Time to Buy?