Quantum computing has become one of the market's hottest themes — and some investors are now betting it has gotten ahead of itself.
According to Insider Monkey, short sellers have flagged a list of quantum computing stocks they consider overvalued. The outlet published rankings of both the 10 most overvalued and the 5 most overvalued names in the sector, as judged by traders who profit when share prices fall. Short sellers borrow shares and sell them, aiming to buy them back cheaper later, so a heavy short interest is effectively a wager that a stock will drop.
The skepticism doesn't tell the whole story, though. The same sector is also drawing bullish calls from Wall Street. According to Yahoo Finance, the investment bank Mizuho raised its price target on D-Wave Quantum (ticker QBTS) to $35 and maintained an "Outperform" rating, signaling it expects the stock to beat the broader market.
That split — short sellers calling parts of the group overpriced while at least one major bank lifts a target — captures the tension around quantum computing as an investment. The technology promises machines that could one day solve problems far beyond today's computers, but commercial payoffs remain early-stage, leaving plenty of room for disagreement over what the companies are worth.
Why it matters: when a buzzy technology attracts both aggressive short bets and rising price targets at the same time, it's a sign that valuations are running on expectations rather than proven results — and that everyday investors chasing the hype could face sharp swings in either direction.