Jefferies Sees $198 Billion Revenue Potential By 2040 For Quantum Computing

The quantum computing industry is currently generating $1 billion in revenue, but this figure could skyrocket to $198 billion by 2040, according to a recent report by Jefferies. Jefferies Sees Early-Stage Quantum Growth Jefferies analysts, led by Kevin Garrigan, have initiated coverage of the quantum computing industry, identifying a potential “total addressable market” of up to $198 billion by 2040, reported Fortune. Jefferies has rated three companies in the quantum industry: D-Wave Quantum (NYSE:QBTS) and IonQ (NYSE:IONQ), with a Buy rating each, and Rigetti Computing (NASDAQ:RGTI) with a Hold rating. The analysts at Jefferies have also noted that the industry is being supported by both governments and major tech companies such as Alphabet Inc. (NASDAQ:GOOG) (NASDAQ:GOOGL) and IBM (NASDAQ:IBM). See Also: Mark Cuban Says Healthcare Is Broken When Doctors Can’t Take Wednesdays Off To Golf. A Healthy System Used To Make That Possible Quantum Computing, The Next AI? Jefferies’ report comes shortly after Mizuho Securities initiated coverage on the same companies, also predicting a significant growth potential in the quantum computing sector. The firm envisions the quantum computing revolution as akin to the early GPU era, with the market poised to grow from roughly $1 billion currently to $205 billion by 2035. The quantum computing industry has been gaining increasing attention from both investors and tech giants. In a recent interview, Alphabet CEO Sundar Pichai compared the current state of quantum computing to where AI was five years ago, suggesting that the industry is on the brink of a significant breakthrough. D-Wave, IonQ Beat Revenue Estimates D-Wave Quantum reported Q3 results showing 100% revenue growth to $3.8 million, GAAP gross profit up 156% to $2.7 million with a 71.4% gross margin, and bookings rising 80% quarter-over-quarter to $2.4 million. Meanwhile, IonQ reported Q4 revenue of $39.9 million, surpassing the $27 million analyst estimate by 47.8%, and raised its full-year 2025 revenue guidance to $106–110 million, above both its previous range of $82–100 million and the $91.3 million analyst consensus. Price Action: On a year-to-date basis, D-Wave Quantum and IonQ surged 165.56% and 15.24%, respectively, as per Benzinga Pro. READ NEXT: Michael Saylor Says Quantum Computing Will Make Bitcoin ‘Stronger,’ Not Break It — What’s His Reasoning? Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.