Quantum computing is advancing gradually from academic theory to early commercialization, and is estimated to be worth $1 trillion to $2 trillion by 2035. However, progress does not involve just building more qubits. In fact, the biggest challenge in quantum computing is associated with reducing errors and improving reliability, scalability, and deployability, while also controlling costs and power usage.
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Quantum computing with even a small number of truly entangled qubits (a multi-qubit state where individual qubits do not have independent states) can prove far superior to classical computers in simulating complexity and range of possibilities. This is precisely why governments and enterprises have been testing quantum approaches to solving complex problems.
Currently, most progress toward the commercialization of quantum computing is made through cloud-based and hybrid (quantum computing combined with classical computing) workflows, rather than stand-alone quantum computing systems. To capitalize on this investment opportunity, many investors are assessing two pure-play quantum computing stocks, IonQ (IONQ 7.69%) and D-Wave Quantum (QBTS 6.74%), which have been dominating the headlines.
Which one is a better buy? Let's find out.
IonQ
IonQ is rapidly scaling its business, as evidenced by a 222% year-over-year growth in revenues to $39.9 million in the third quarter of fiscal 2025 (ending Sept. 30, 2025). Management now expects fiscal 2025 revenues to be in the range of $106 million to $110 million, up from its previous guidance of $82 million to $100 million. IonQ also exited the quarter with remaining performance obligations (RPO, a measure of contracted backlog) of $141.1 million, offering impressive revenue visibility into future quarters.
NYSE: IONQ
Key Data Points
IonQ also boasts a strong balance sheet, with a pro forma cash balance of $3.5 billion (as of Oct. 14, 2025) and no debt. Hence, while the company is not yet profitable, it does not face near-term funding risk.
IonQ builds universal, gate-based quantum computers, which use sequences of quantum gates to perform calculations on trapped ions or charged atoms held in place with electromagnetic fields. The company has already achieved 99.99% two-qubit gate fidelity, meaning that calculations involving two qubits are accurate 99.99% of the time.
The company's Tempo system has also reached an algorithmic qubit score that indicates it can execute complex and deep computations comparable to a system with 64 high-quality algorithmic qubits. Although these milestones do not directly translate into near-term commercial success, they represent significant progress in addressing the core challenge of error reduction in quantum computing. IonQ is also targeting scaling its quantum systems to 256 physical qubits by the end of calendar year 2026 and up to 10,000 physical qubits by the end of calendar year 2027.
D-Wave Quantum
D-Wave Quantum is a leading pure-play provider of quantum annealing systems, designed mainly to find approximate answers for optimization problems rather than precise answers in general-purpose quantum computing. The company is gradually gaining traction, and saw revenues soar nearly 100% year over year to $3.7 million in the third quarter of fiscal 2025 (ending Sept. 30, 2025).
The company reported an impressive non-GAAP gross margin of 77.7%, up 10.5 percentage points on a year-over-year basis. Its balance sheet is also solid, with $836.2 million in cash on hand.
NYSE: QBTS
Key Data Points
D-Wave Quantum is already seeing some success with hybrid quantum technology, which combines quantum annealing with classical computing, in commercial use cases. Customers such as BASF, North Wales Police, and Japan Tobacco's pharmaceutical division have reported impressive improvements in several operational challenges with these hybrid solutions.
Recently, the company secured a 10 million euros commitment from Swiss Quantum Technology SA, gaining access to 50% of the capacity of its Advantage 2 annealing quantum computer for five years, with deployment expected in 2026. The contract includes an option that allows Swiss Quantum Technology to purchase the full system at a later date.
The application of D-Wave's technology to real-world operational problems today, rather than just experiments, is a significant competitive advantage. Yet the company's systems are not witnessing robust enterprise adoption at scale.
Which is better?
IonQ is pursuing a capital-intensive strategy to become a dominant player in universal, fault-tolerant quantum computing. If successful, the company's quantum computing systems can tackle large-scale complex problems across industries and functions. The company's revenue base is already significantly larger than D-Wave's, while its contract backlog also highlights continued traction in 2026. IonQ also has a higher cash balance, which is a significant positive in a capital expenditures-heavy industry like quantum computing.
Although D-Wave's quantum annealing technology has already demonstrated early commercial proof points, it can be used only in limited use cases. Management has been working on developing a gate-model quantum computing program in parallel, but a commercial-grade fault-tolerant system may still need several more years to come into focus. This may restrict D-Wave's long-term commercial scale.
IonQ is trading at 204.4 times sales, which is undeniably steep. However, with gate-based quantum computing being widely considered to provide long-term solutions to advanced problems in materials science, cryptography, and advanced simulation, investors may be ready to pay this premium for IonQ. In comparison, D-Wave Quantum trades at 344.3 times sales, a valuation multiple even more elevated than that of IonQ.
Considering all the factors, IonQ seems to offer a better risk-reward profile for long-term investors.
