Quantum computing is projected to create $1 trillion in global economic value by 2035. Stocks for IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. have all surged in anticipation of rapid adoption of quantum computing technology. However, third-quarter results from these companies suggest a murky outlook for the growth of quantum computing stocks.

Quantum computing utilizes specialized computers and quantum mechanics theories to solve complex problems classical computers cannot. It has potential to accelerate AI learning, aid in drug development, weather modeling, and cybersecurity. Boston Consulting Group estimates global economic value creation from quantum computing to be $450 billion to $850 billion by 2040, with The Quantum Insider predicting $1 trillion by 2035.

Amazon’s Braket and Microsoft’s Azure Quantum services offer subscribers access to IonQ’s and Rigetti’s quantum computers. Despite the hype, recent events like the third-quarter results for IonQ, Rigetti Computing, and D-Wave Quantum indicate a potential acceleration in the pullback of quantum computing stocks.

IonQ exceeded sales estimates by 37% but its revenue of $39.9 million for the quarter does not justify its market cap exceeding $20 billion. Rigetti Computing’s sales were disappointing, and D-Wave Quantum’s sales were not substantial enough given their market caps. The high price-to-sales ratios of these companies suggest overvaluation and potential future stock declines.

Read more at Nasdaq: Pullbacks for Quantum Computing Stocks IonQ, Rigetti Computing, and D-Wave Quantum Appear Set to Accelerate