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Quantum Stocks: B. Riley Urges 'Buy the Dip'

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  Published in Stocks and Investing on Thursday, January 22nd 2026 at 18:55 GMT by CNBC
      Locales: New York, N/A, UNITED STATES

Thursday, January 22nd, 2026 - The quantum computing sector, recently buffeted by headwinds related to timeline expectations and near-term profitability concerns, is presenting a compelling opportunity for long-term investors, according to B. Riley Securities. In a recent analyst note, B. Riley advised investors to "buy the dip" in quantum stocks, suggesting that the current pullback represents a favorable entry point.

The quantum computing landscape has experienced significant volatility in recent months, reflecting the inherent challenges and long development cycles associated with this groundbreaking technology. While the potential for disruption across industries - from pharmaceuticals and materials science to finance and artificial intelligence - is immense, the sector remains firmly in its nascent stages. This early stage development introduces a high degree of risk, as timelines and financial projections are subject to considerable uncertainty.

B. Riley's perspective aligns with the observation that the recent downturn isn't indicative of a fundamental flaw within the quantum computing industry itself, but rather a reaction to broader market trends and shifting investor sentiment. A general risk-off attitude in the market can disproportionately impact high-growth, speculative sectors like quantum computing, leading to dramatic price corrections.

Key Picks from B. Riley's Analysis

While the firm is generally optimistic about the quantum computing sector, not all companies are created equal. B. Riley has highlighted three specific stocks as particularly promising:

• Quantum Motion: B. Riley has identified Quantum Motion as the "most promising" company within their analysis. This designation stems largely from the company's recent strategic partnership with Google, a validation of its technology and a potential catalyst for future growth. The details of this partnership remain proprietary, but the mere association with a tech giant like Google lends significant credibility and visibility to Quantum Motion.
• ColdQuanta: ColdQuanta's unique approach to quantum computing, utilizing lasers, differentiates it within the competitive landscape. The firm's rapidly expanding network of partners suggests increasing industry adoption and confidence in its technology. ColdQuanta's laser-based approach is gaining traction as an alternative to trapped-ion and superconducting qubit technologies, each with its own advantages and disadvantages.
• IonQ: B. Riley maintains a positive outlook on IonQ, recognizing its position as a leader in trapped-ion quantum computing. Trapped-ion technology is considered by many to be a frontrunner in the quantum race, and IonQ's established presence in this area contributes to the firm's optimistic assessment. IonQ's publicly available roadmap and demonstration of increasingly complex quantum algorithms have fueled investor interest.

Understanding the Risks and Rewards

Investing in quantum computing represents a high-risk, high-reward proposition. The timeline to profitability remains uncertain, and technological breakthroughs are not guaranteed. The challenges are considerable, ranging from maintaining qubit stability (decoherence) to developing practical quantum algorithms and overcoming the need for extremely low operating temperatures. Significant advancements in materials science, cryogenic engineering, and software development are still required.

Despite these challenges, the potential upside is transformative. Quantum computers promise to solve problems currently intractable for even the most powerful classical computers. This could revolutionize drug discovery by simulating molecular interactions, optimize financial models to predict market trends with greater accuracy, and accelerate materials science research to create innovative new materials with unprecedented properties.

Investor Considerations

B. Riley's recommendation to "buy the dip" is a strategic one, predicated on the belief that the current market conditions are temporary. However, potential investors should be prepared for continued volatility and a potentially long investment horizon. Thorough due diligence, a clear understanding of the technology's complexities, and a willingness to accept a degree of risk are crucial before allocating capital to quantum computing stocks. While the future looks bright for quantum computing, it's a marathon, not a sprint, and investors should be prepared for the journey.