This week witnessed a remarkable upswing in quantum technology stocks, catapulting a previously specialized segment of the tech industry into the spotlight on Wall Street. Companies like IonQ Inc, Rigetti Computing Inc, D-Wave Quantum Inc, and Quantum Computing Inc experienced substantial price increases, fueled by strategic acquisitions, significant government orders, and encouraging recommendations from financial analysts. This rapid growth has led many investors to evaluate whether exchange-traded funds (ETFs) might represent a more secure and diversified investment avenue to capitalize on the expanding quantum sector.
A number of ETFs currently provide investment opportunities in quantum technology through their specific holdings. The Defiance Quantum ETF (QTUM) stands out as a fund particularly dedicated to quantum, tracking an index of international corporations involved in quantum computing, machine learning, and cloud technologies. This ETF saw a notable rise of 2.83% on Thursday, reflecting growing interest in quantum pioneers like IonQ and Rigetti. By distributing its assets across hardware, software, and the foundational infrastructure of quantum, QTUM offers investors a broad entry point into this complex ecosystem.
Beyond dedicated quantum funds, other ETFs also offer exposure, albeit with a broader focus. The Global X Artificial Intelligence & Technology ETF (AIQ) invests in companies utilizing artificial intelligence, big data, and advanced computing, some of which are also engaged in developing quantum capabilities. This fund increased by 1.24% on Thursday, illustrating how AIQ bridges the gap between AI and quantum computing—two fields increasingly recognized as interdependent forces driving the next generation of computational advancements. Similarly, the First Trust Nasdaq Artificial Intelligence and Robotics ETF (ROBT) adopts a more expansive strategy, holding shares in firms across robotics, automation, and AI. With a 2.1% gain on Thursday, ROBT, while not solely focused on quantum, includes companies making substantial investments in cutting-edge research and development that touch upon quantum applications in critical areas such as aerospace, cybersecurity, and defense.
Individual quantum stocks have been the primary drivers of this week's enthusiasm. IonQ, for instance, made headlines with its disclosure of acquiring Oxford Ionics and entering a binding agreement to purchase Vector Atomic, alongside securing over $200 million in government contracts. Further bolstering its position, IonQ announced its participation in the Department of Energy’s Quantum-in-Space partnership, an initiative aimed at advancing secure communications and quantum sensing for space applications. This series of positive developments led Needham analyst N. Quinn Bolton to reaffirm a Buy rating on IonQ, setting an $80 price target and contributing to the stock's approximately 6% increase on Thursday, building on Wednesday's record highs.
The momentum extended beyond IonQ. Rigetti Computing witnessed a significant 19% surge on Thursday following news of a $5.8 million contract from the Air Force Research Laboratory for superconducting quantum networking. D-Wave Quantum also reached a new all-time high with an 8% jump on Thursday, driven by impressive growth in bookings in Asia and innovative applications of quantum AI in areas like drug discovery and telecommunications optimization. Quantum Computing Inc. likewise benefited, gaining 5% on Thursday as it rode the broader wave of excitement in the quantum sector.
As quantum companies solidify their standing through governmental collaborations and corporate partnerships, ETFs are emerging as a crucial component for investors. For those hesitant about the inherent volatility associated with individual high-growth stocks, diversified funds like QTUM, AIQ, and ROBT could serve as an accessible entry point into what many foresee as the "AI-meets-quantum era," potentially marking the next major thematic investment trend.