Horizon Quantum Holdings Inc. (HQ), a quantum computing software company, jumped 18.13% on Tuesday, June 30, closing at $27.76 after a steep five-day selloff. The move came after the stock had dropped more than 36% from its recent high, but it still left Horizon up more than 150% since June 12.
It appears that the rebound was not tied to any clear new company-specific announcement. Instead, it looked more like a sharp bounce after an overheated move in one of the market’s highest-profile quantum names. Horizon had surged earlier in June as it implemented its second IonQ (IONQ) 256-ion trapped system in Dublin. Then, Investors rushed into pure-play quantum stocks following the U.S. government’s CHIPS Act letter of intent to grant $2 billion to 10 companies to advance quantum development, including efforts to accelerate the creation of a national quantum computer.
However, that rally quickly became stretched. Horizon touched $45 intraday on June 22 before traders started taking profits. For a newly public, relatively small quantum stock, that kind of move can reverse fast once momentum cools.
XNDU Followed a Similar Pattern
Xanadu Quantum Technologies Inc. (XNDU), a photonic quantum computing company, also bounced on Tuesday, June 30, rising 9.89% to $12.11. Like Horizon, Xanadu has become a visible pure-play name in the quantum space, which makes it more sensitive to swings in investor appetite for speculative technology stocks.
The two stocks stood out yesterday, while most other quantum names were slightly lower. Still, it is probably too strong to say investors were clearly choosing Horizon and Xanadu as sector winners. The more likely scenario is that traders were buying beaten-down, high-momentum quantum stocks after a fast correction.
Horizon’s software-focused story may have helped. If quantum computing becomes more useful over time, investors will likely look for companies that can make the technology easier to program and use. Xanadu’s photonic approach also gives it a distinct angle, as it seeks to build quantum systems using light-based technology.
We used TipRanks’ Comparison Tool to line up all the pure-play quantum stocks to gain an in-depth view of each stock and the broader quantum computing sector.
