Quantum computing stocks rally 5% as sector momentum builds

Quantum computing stocks surged in pre-market trading on May 29, with IBM and Infleqtion each rising more than 5%, as investor appetite for the sector accelerated.

Quantum computing stocks extended their rally in pre-market trading Wednesday, with IBM and Infleqtion each gaining more than 5%, as investors rotated into the sector amid growing confidence in near-term commercial applications.

"The market is beginning to price in real revenue from quantum computing within a three- to five-year window, not the decade-plus timeline that dominated earlier forecasts," said Rachel Kim, senior analyst at Edgen. "That compresses the discount rate on these stocks."

ServiceNow led the group with a 6% advance, while Oracle added more than 4%. Infleqtion, the Louisville, Colorado-based neutral atom quantum computing company with a $3.54 billion market capitalization, traded in the middle of its 52-week range and above its 200-day moving average. The stock had closed at $16.22 in the prior session before sliding $0.11 in after-hours trading.

The coordinated move across four distinct quantum computing exposures — hardware builders IBM and Infleqtion, enterprise software provider ServiceNow, and cloud infrastructure giant Oracle — suggests a broad-based sector rotation rather than a company-specific catalyst. If sustained, the rally could draw additional institutional capital into a sector that remains early-stage but is attracting increasing government and corporate funding.

IBM has been advancing its 1,000-plus qubit roadmap, while Infleqtion focuses on neutral atom architectures for computing, networking, and sensing. Oracle and ServiceNow have been integrating quantum-resistant algorithms and exploring quantum-classical hybrid workloads for enterprise clients. The rally also comes as major cloud providers — Amazon Web Services, Microsoft Azure, and Google Cloud — expand their quantum-as-a-service offerings, lowering the barrier for enterprise experimentation.

For investors, the key question is whether the sector's valuation can be supported by near-term revenue. IBM's quantum business remains a fraction of its $62 billion in annual revenue, and Infleqtion has not yet disclosed earnings. ServiceNow trades at elevated multiples relative to the broader software sector, while Oracle's quantum exposure is embedded within its larger cloud business. "The rally is a sentiment shift, not a revenue event," Kim said. "The fundamental catalysts — a major benchmark result, a government contract, or a production timeline — have yet to materialize."

This article is for informational purposes only and does not constitute investment advice.