Institutional Investors Reduce Holdings in Pure-Play Quantum Computing Stocks
Form 13F filings indicate a reduction in institutional investor and hedge fund holdings of pure-play quantum computing stocks, including IonQ, Rigetti Computing, and D-Wave Quantum. This development follows impressive trailing 12-month (TTM) returns for these stocks, with Rigetti's TTM gain exceeding 6,200% as of mid-October.
Quantum Computing Market Overview
Analysts project significant economic value from quantum computing. Boston Consulting Group estimates $450 billion to $850 billion in global economic value by 2040, while The Quantum Insider forecasts up to $1 trillion by 2035. Key applications include accelerating AI algorithms, improving cybersecurity, and simulating molecular interactions for drug development.
Early-stage commercial wins highlight the nascent potential of the sector. Amazon's Braket cloud service, for example, provides clients with access to quantum computers from IonQ, Rigetti, and D-Wave.
JPMorgan Chase's $1.5 trillion Security and Resiliency Initiative has identified quantum computing as an area for future financing or investment. These companies are also expected to maintain triple-digit sales growth.
Institutional Investor Activity Revealed in Form 13F Filings
Form 13F filings, which institutional investors and hedge funds with over $100 million in assets under management are required to submit, reveal changes in their holdings. The latest filings for the fourth quarter show a decrease in the percentage of outstanding shares held by institutions for all three pure-play quantum computing stocks:
- IonQ: Decreased from 57.35% (Q3 2025) to 54.71% (Q4 2025). This occurred despite an increase in the aggregate number of shares held by 13F filers for IonQ, due to a $2 billion equity offering in October which diluted existing shareholders.
- Rigetti Computing: Decreased from 50.71% (Q3 2025) to 48.45% (Q4 2025).
- D-Wave Quantum: Decreased from 53.94% (Q3 2025) to 48.76% (Q4 2025).
Factors Influencing Investor Sentiment
The observed reduction in institutional ownership may stem from several factors inherent to the early stage of quantum computing commercialization.
Quantum computing companies like IonQ, Rigetti, and D-Wave are in early commercialization stages and often rely on dilutive share offerings for capital, as traditional financing may be limited.
Additionally, historical market trends suggest that game-changing technologies often experience a bubble-bursting event when investors overestimate the speed of adoption and optimization. Quantum computers are not yet broadly adopted or more cost-efficient than classical computers for practical problem-solving.
Another significant concern for investors is the high trailing 12-month price-to-sales (P/S) ratios of these stocks. Historically, P/S ratios above 30 for companies leading "next-big-thing" trends have been associated with market bubbles, and quantum computing pure-play stocks currently exceed this threshold.