Here's what happens when the suits leave for the holidays: retail investors throw a party. This year's version features quantum computing stocks getting a serious boost as the "diamond hands" crowd rotates into high-beta names while institutional desks sit empty.
The 2025 Santa Rally has a distinctly futuristic flavor, with quantum stocks leading the charge during the final trading weeks of the year. The timing makes sense—when the so-called "smart money" takes a breather, retail sentiment can move markets more freely.
The Quantum Winners
Several quantum names are catching fire, driven by a combination of strategic announcements, bullish analyst coverage from Jefferies and Wedbush, and good old-fashioned retail enthusiasm.
D-Wave Quantum Inc. (QBTS) led the pack Monday with a nearly 20% surge on massive volume. The catalyst? Confirmation that its Advantage2 annealing system will take center stage at CES 2026. Retail sentiment exploded following the announcement, with traders betting on the company's quantum annealing technology gaining broader recognition.
Rigetti Computing Inc. (RGTI) rode a wave of social media buzz as investors focused on the company's 2026 roadmap. The promise of higher-qubit systems with dramatically lower error rates has captured the imagination of retail traders looking for the next big breakthrough in quantum computing.
IonQ Inc. (IONQ) benefited from what analysts are calling the "halo effect"—rising alongside the broader sector rally. Recent "Buy" ratings highlighting the company's 99.9% fidelity milestones added fuel to the fire, giving retail investors another reason to pile in.
Quantum Computing Inc. (QUBT) got its own catalyst when it officially closed the acquisition of Luminar Semiconductor from Luminar Technologies Inc. (LAZR). By securing a domestic supply chain for TFLN chips, the company positioned itself as a "picks and shovels" play—the infrastructure provider that could benefit regardless of which quantum horse wins the race.
Why the Holiday Window Matters
The period between December 20 and New Year's has a reputation on Wall Street. Trading volume typically drops as institutional players head out for vacation, and that lower liquidity creates an environment where retail-driven momentum can move small-cap stocks more dramatically than usual.
This year's quantum rally fits that pattern perfectly. With fewer institutional traders around to provide counterbalance, retail enthusiasm can push prices higher on relatively modest volume increases. It's a seasonal quirk that savvy retail traders have learned to recognize and exploit.
But this isn't just about thin holiday trading. The rally also reflects genuine retail conviction that quantum computing's commercial moment is approaching—possibly as soon as 2026. Whether that optimism proves warranted remains to be seen, but for now, retail investors are betting big on quantum's future.