Should You Invest in Quantum Computing Stocks During the TACO Trade?
Quantum computing stocks have taken a breather this year, possibly making now an intriguing time to strike.
It’s been a tough year for financiers up until now. Since market close on June 5, the S&P 500 and Nasdaq Composite indexes each have breakeven returns on the year. While this makes it extremely tough to earn money in the stock exchange, there have actually been some pockets during which investors constructed well if they picked to engage with higher-than-usual volatility. By now, you may have come across a new acronym floating around monetary circles called the “TACO” trade. Below, I’ll detail what this suggests and why it’s important. From there, I’ll go into one of the brand-new, hot locations sustaining the artificial intelligence (AI) narrative: quantum computing. Could quantum computing stocks be a great way to play the TACO trade? Keep reading to find out.
What is the TACO trade?
Although the S&P 500 and Nasdaq are both flat on the year, the image below illustrates that there have been some noticable dips and sharp rises throughout both indexes throughout 2025. The catch is that these unstable movements have been exceptionally fleeting.
The term “TACO trade” is a saucy acronym that means “Trump always chickens out.” Generally, whenever the President voiced some tough rhetoric on his brand-new tariff policies, the marketplaces plunged. Nevertheless, when he consequently alleviates a few of the pressure on the tariff talking points, the markets roar once again. In summary, the TACO trade is simply a brand-new variation of purchasing the dip when stock rates become unusually depressed.
Are quantum computing stocks a good buy today?
Two of the most popular quantum computing stocks in the market today are IonQ (IONQ 6.46%) and Rigetti Computing (RGTI 3.67%). Throughout 2024, shares of IonQ skyrocketed by 237% while Rigetti stock climbed by a jaw-dropping 1,450%– both of which totally dominated the more comprehensive market. This year has actually been a various story. Since closing bell on June 5, shares of IonQ and Rigetti Computing have actually plummeted by 12% and 28%, respectively. Provided these declines, is now a great opportunity to buy quantum computing stocks?
To address that concern, smart investors comprehend that valuation requires to be a consideration. Per the chart below, Rigetti Computing and IonQ boast price-to-sales (P/S) ratios that seem incongruent with the company’s underlying fundamentals.
Taken a look at another way, IonQ and Rigetti Computing have generated a combined earnings of approximately $50 million over the last 12 months– all while posting a net loss of $460 million between the 2 organizations. Given the nominal sales figures and hemorrhaging losses, it’s difficult to validate the valuation multiples envisioned above. Keep the huge photo in focus
The big takeaway here is that despite the fact that shares of IonQ and Rigetti are down on the year, their respective evaluations make it clear that neither of these business is a good “buy the dip” candidate. Rather, even with their underperformance throughout the year, each stock remains overvalued. For these reasons, I would not go after any sell-offs in these quantum computing stocks as the TACO trade continues to progress. My suspicion is that both IonQ and Rigetti will experience some continued appraisal compression, and their share prices could effectively keep spiraling downward.
Could quantum computing stocks be a good method to play the TACO trade? Are quantum computing stocks a great buy right now? Two of the most popular quantum computing stocks in the market right now are IonQ (IONQ 6.46%) and Rigetti Computing (RGTI 3.67%). Given these declines, is now an excellent opportunity to purchase quantum computing stocks? For these reasons, I would not chase any sell-offs in these quantum computing stocks as the TACO trade continues to progress.
