Quantum computing hype cycle

PARAGRAPH 1 --- Nokia Oyj (NYSE:NOK) is among the 10 most overvalued quantum computing stocks, with a forward P/E of 30.07, according to short sellers. On June 9, Nokia and Indosat Ooredoo Hutchison announced a partnership to modernize Indosat’s mobile network in Indonesia using Nokia's 5G and cloud technologies. Meanwhile, quantum computing stocks like IonQ (IONQ), Rigetti (RGTI), D-Wave, and Quantum Computing Inc. all fell 5% to 7% on June 14, reversing recent gains. IonQ, for instance, carries a $21 billion valuation on just $65 million in quarterly revenue.

PARAGRAPH 2 --- The market is reassessing the valuation of quantum computing stocks, with investors separating winners from losers. Nokia's high valuation, despite not being a pure-play quantum company, has drawn criticism. IonQ, while leading in revenue growth and backlog, still trades at a premium. The sharp decline in quantum computing stocks on June 14 indicates a repricing of these high-risk, high-reward investments.

PARAGRAPH 3 --- Next, watch for IonQ's earnings on August 11, as it will provide insights into the company's growth trajectory. Also, monitor Amazon's (AMZN) progress in quantum computing, as its top AI executive predicts commercially useful quantum computers in the next 5-7 years. Lastly, keep an eye on the overall market sentiment towards high-growth, high-risk tech stocks, as this will likely influence the performance of quantum computing companies.