Institutional Investors Trim Stakes in Quantum Computing Stocks

Insider Brief

• Institutional ownership declined in the fourth quarter for IonQ, Rigetti Computing and D-Wave Quantum, according to aggregated 13F data from WhaleWisdom.
• The broad decline in institutional ownership comes after a period of strong retail interest and sharp stock-price volatility in quantum computing shares.
• Elevated price-to-sales ratios and continued reliance on share offerings for funding may be contributing to more cautious positioning by professional investors.
• Photo by Anne Nygård on Unsplash

Institutional investors trimmed their ownership stakes in three publicly traded quantum computing companies in the fourth quarter of 2025, according to newly filed securities disclosures, in what could be a signal of growing caution around quantum investments.

As reported by Motley Fool, data compiled by WhaleWisdom.com from fourth-quarter Form 13F filings show that the percentage of outstanding shares held by institutional investors and hedge funds declined across three of the sector’s pure-play companies: IonQ, Rigetti Computing and D-Wave Quantum.

Ownership of Rigetti Computing slipped to 48.45% from 50.71%, while D-Wave Quantum saw a steeper drop to 48.76% from 53.94%. IonQ’s institutional ownership fell to 54.71% at the end of the fourth quarter of 2025, down from 57.35% in the third quarter.

Form 13F filings are required within 45 days of a quarter’s end for professional money managers overseeing at least $100 million in assets. While the filings do not reveal short positions or intraperiod trading, they offer a snapshot of where Wall Street’s largest investors are placing their bets.

The broad decline in institutional ownership comes after a period of strong retail interest and sharp stock-price volatility in quantum computing shares, which have been promoted as long-term beneficiaries of advances in next-generation computing.

Complicated Picture

While the decline appears broad and straightforward, there are a few factors that cloud this obvious picture.

First, it’s important to note that the pullback also comes after all three companies posted substantial gains in the price of their stocks. Investors who have benefited from those gains may be reluctant to add more to their positions to avoid adding risk without the potential for a significant return.

The headline decline in ownership percentages also doesn’t obviously address dilution. Because quantum computing companies remain in the early stages of commercialization, they are heavily reliant on equity markets for funding, which, in turn, creates dilution.

For example, according to WhaleWisdom’s aggregated data, the total number of shares held by 13F filers in IonQ actually increased in the fourth quarter. The percentage ownership still fell, however, because the company completed a roughly $2 billion equity offering in October, expanding its share count and diluting existing shareholders.

IonQ, Rigetti and D-Wave all generate revenue from cloud access, research partnerships and early-stage commercial contracts, but none has reached sustained profitability. Besides acquisitions, raising capital through stock offerings can been a direct way to finance research, development and infrastructure expansion.

Until their operating models mature and cash flows stabilize, access to more traditional financing — such as large-scale bank lending or investment-grade debt markets — may remain limited. That dynamic increases the likelihood of future dilution, a factor that can weigh on institutional appetite.

Valuation Concerns

Investor caution may also reflect valuation levels that remain elevated relative to current revenues.

At various points over the past year, IonQ, Rigetti and D-Wave have traded at trailing 12-month price-to-sales ratios well above 30. Historically, such multiples have often been associated with speculative periods in emerging technology markets.

The Motley Fool analysis also points out that price-to-sales ratios above 30 for companies tied to “next big thing” trends can signal heightened risk, particularly when revenue bases are still small and profitability remains distant.

Even assuming triple-digit revenue growth — which some quantum companies have posted in recent quarters — it could take time for those multiples to compress meaningfully if stock prices remain elevated.

The pullback in institutional ownership also fits a broader historical pattern.

Over the past three decades, transformative technologies — from the internet to social media to clean energy — have experienced cycles of rapid investor enthusiasm followed by periods of correction. These boom-and-bust episodes often stem from overly optimistic assumptions about how quickly businesses will adopt new tools and how fast costs will decline.

Quantum computing, while widely viewed as promising for certain classes of complex problems, is still largely confined to research environments and pilot projects. For many practical business applications, classical high-performance computers remain more cost-efficient and reliable.

That gap between long-term potential and near-term commercial reality creates fertile ground for volatility. If adoption timelines stretch or technical hurdles prove more stubborn than expected, valuations built on aggressive growth assumptions could come under pressure.

Still ‘Early Innings’

None of this necessarily signals an imminent collapse in quantum computing equities. Institutional ownership remains substantial, with each of the three companies still having roughly half of their shares in the hands of professional investors.

As mentioned, large asset managers frequently adjust sector exposure as part of portfolio rebalancing, risk management or broader macro positioning, rather than as a direct commentary on a single industry’s prospects.

For investors watching the quantum space, the message may be less about an outright exit and more about recalibration.