Latest news with #QUBT
Business Insider
12 hours ago
- Business
- Business Insider
‘Don't Bet the Farm,' Says Analyst About Quantum Computing Stock (QUBT)
Just months after suggesting that the widespread adoption of quantum computing was still '15 to 20 years away,' Nvidia CEO Jensen Huang offered a much more optimistic outlook, sparking a rally in speculative quantum stocks, such as Quantum Computing, Inc. (QUBT). The tech pioneer is up 8.5% so far this week, with bullish sentiment at its peak. Confident Investing Starts Here: However, a deeper look reveals significant concerns about QUBT's financial position. And while the industry is making progress, scaling quantum systems to tackle real-world problems remains a massive challenge, particularly for a company of QUBT's size. Despite the broader enthusiasm for 'lifting all boats' in the sector, I remain bearish on QUBT. The Nvidia Effect: A CEO's Shifting Narrative Being the CEO of a major tech company comes with significant influence—something Nvidia's Jensen Huang demonstrated at the GTC Paris developer conference when he declared that 'quantum computing is reaching an inflection point.' While his remarks centered on Nvidia's own innovations—like CUDA-Q, which aims to integrate quantum capabilities with classical systems—his optimism could have ripple effects across the sector. Nvidia backed its words with action in March 2025 by launching a new quantum computing research lab in Boston, reinforcing its leadership in the space. Huang's bullish tone may inspire increased venture capital and R&D investment across the quantum ecosystem. However, skepticism persists. Many still view practical quantum applications as decades away, with the industry struggling to define clear, real-world use cases that outperform traditional supercomputers. Without a breakthrough and tangible return on investment (ROI), quantum computing remains a tough sell to potential customers seeking immediate, measurable benefits. Quantum Computing's Niche Technology Quantum Computing Inc. specializes in photonic, or light-based, quantum solutions, developing Quantum Processing Units (QPUs) designed to operate at room temperature and low power, features that could make the technology more accessible and cost-effective. However, the company's focus remains on niche applications, such as remote sensing and computational chemistry, which limits its current market reach. While progress is being made in identifying use cases where quantum systems may outperform classical supercomputers, practical, scalable, and commercially viable applications are still emerging. The technology faces persistent challenges, including qubit fragility, high error rates, and scalability limitations. These machines are highly specialized and complex, suited for addressing targeted, advanced problems, but are not yet ready for broad commercial deployment. Financials Tell A Different Story Quantum Computing's first-quarter 2025 earnings highlight just how early-stage its business remains. The company reported revenue of only $39,000—roughly equivalent to the median U.S. individual income—while operating expenses climbed to $8.3 million. A $23.6 million non-cash gain from the mark-to-market revaluation of its warrant liability resulted in a reported net income of $17 million. However, this masks the company's ongoing operational losses. On the operational front, the company completed construction of its Quantum Photonic Chip Foundry. It announced new partnerships, including a contract with NASA's Langley Research Center—a sign of growing institutional interest despite modest commercial traction so far. QUBT's Speculative Valuation Quantum Computing's ~$3 billion market cap, despite minimal revenue, highlights an apparent disconnect from fundamentals and suggests the stock is driven largely by speculation. While the company holds $166 million in cash and cash equivalents, providing it with some runway to develop its technology, its R&D budget is modest compared to that of deep-pocketed rivals like IBM, Google, Microsoft, and Nvidia. Importantly, this cash position was built primarily through dilutive stock offerings and private placements, underscoring its heavy reliance on external funding. Given these constraints, it's difficult to envision a near-term path where Quantum Computing scales its niche technology into a broadly commercial product in a way that meaningfully rewards shareholders. Is QUBT Stock a Buy, Hold, or Sell? Reflecting its speculative nature, Quantum Computing's analyst coverage is limited. Its Moderate Buy consensus rating is based on one Buy recommendation in the past three months. Its average price target of $14.00 implies a downside potential of ~27% over the next 12 months. Meanwhile, TipRanks AI assigns QUBT a Neutral rating and a price target of $22. It notes that Quantum Computing's strong balance sheet and Qatalyst software positions it favorably amid hardware advances and increasing demand. However, it also points out that QUBT sports a high valuation, especially in light of ongoing losses and minimal revenues. QUBT Remains a High-Risk Bet in a Competitive Field While quantum computing as a whole may be approaching an 'inflection point,' the outlook for pure-play firms like Quantum Computing Inc. remains highly speculative. With minimal revenue, the company is still far from its own inflection point, where its products gain broad commercial viability. Reaching that stage will likely require scientific breakthroughs and significant R&D investment, which Quantum Computing may struggle to match relative to well-funded giants like IBM. That said, growing industry momentum is a clear tailwind. Rising interest in the sector could lead to increased funding, larger contracts, and a stronger push toward practical applications. Quantum Computing's unique focus on room-temperature, low-power photonic quantum systems, along with its early, albeit modest, commercial traction, may appeal to risk-tolerant, long-term investors. Personally, I remain highly cautious. The company's weak financial performance, lofty valuation, and limited ability to compete with larger players make its long-term investment case difficult to justify at this stage.
Yahoo
16 hours ago
- Business
- Yahoo
QUBT Rockets 3,144% on Quantum Hype, as Valuation Leaves No Room for Error
Quantum Computing Inc. (QUBT) has experienced extreme volatility, recently surging over 25% in a single week following a public endorsement from Nvidia CEO Jensen Huang, fueling a staggering 3,144% gain over the past year. Investor excitement around a potential inflection point in quantum computing is palpable, though whether that enthusiasm is grounded in near-term reality remains to be seen. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter While I'm bullish on the broader quantum technology narrative, QUBT's current valuation seems to price in near-flawless execution and rapid industry expansion—expectations that leave little room for error. The stock's sharp price swings may appeal to short-term traders and speculators, but as a long-term investor, I'm taking a wait-and-see Neutral approach, preferring to let the sector mature and the company's fundamentals catch up to its hype. QUBT is positioning itself as an emerging contender in the quantum technology space, with a focus on thin-film lithium niobate (TFLN) chips—a key component in photonic quantum computing, which could represent a major breakthrough in the field. The company recently completed its Photonic Chip Foundry in Tempe, Arizona, a strategic move designed to give it an edge in producing specialized chips for quantum applications. By targeting this niche early, QUBT aims to establish a leadership position before larger, better-funded competitors scale up similar capabilities. QUBT has also secured notable partnerships, including contracts with NASA, the Delft University of Technology, and a major automotive manufacturer, signaling growing interest in its technology, despite current revenues remaining modest. That said, the quantum computing race is still in its early stages. Success is far from guaranteed, especially as QUBT faces fierce competition from tech giants and deep-pocketed startups. While the company's strategy is compelling, the path to long-term dominance remains uncertain. Quantum Computing posted surprising numbers for the first quarter of 2025. The company reported a net income of $17 million, or $0.13 per share, representing a remarkable turnaround from the $6.4 million loss it posted in the same quarter last year. However, the impressive change in profit wasn't from selling more products or services. Instead, it came from a $23.6 million non-cash accounting gain related to the valuation of specific financial instruments. Strip away this one-time boost, and Quantum actually lost $8.3 million from operations, an increase from the $6.3 million operating loss they had the year before. The company's gross margins also took a hit, falling from 41% to 33%. Management has attributed this to growing pains that come with operating at such low revenue levels, but it remains a red flag worth watching. On the bright side, the company's financial position is solid. It reported a $166.4 million cash position (boosted by a recent $93.6 million investment), virtually no debt, and a strong balance sheet. This gives it plenty of runway to fund operations and growth initiatives without worrying about burning through its cash anytime soon. While overall market sentiment remains cautious, QUBT has emerged as a favorite among momentum traders and quantum computing enthusiasts. This has created a dynamic where the stock's movements are often fueled more by headlines and sector hype than by underlying business fundamentals. For instance, when Nvidia's CEO made favorable comments about quantum computing, QUBT surged 25% in a single day. However, the recent rally has pushed QUBT's valuation to over 4,500 times its annual revenue—a level that should give even the most bullish growth investor reason to pause. The real test will come when the next headline isn't so favorable. On Wall Street, QUBT stock carries a Moderate Buy consensus rating based on one buy rating provided by Ascendiant. The firm has set QUBT's stock price target at $14, implying approximately 30% downside potential over the next twelve months. QUBT's future success hinges on several factors largely outside its direct control. The quantum computing industry remains in its early stages, with widespread commercial adoption still years away. Key drivers—such as government funding, enterprise investment in advanced computing, and broader tech sector capital flows—will heavily influence whether companies like QUBT can thrive or falter. The stock is also susceptible to shifts in market sentiment. A turn toward prioritizing profitability over growth, or rising interest rates that dampen the appetite for speculative investments, could present serious challenges. Conversely, stronger government backing for quantum innovation, technological breakthroughs, or high-profile commercial partnerships could serve as powerful catalysts for QUBT's growth trajectory. Quantum Computing's strong financial position, traction with potential customers, and strategic positioning in a potentially transformative industry are attractive characteristics. Yet, the stock is priced for perfection, leaving little room for disappointment. While I am bullish on the potential opportunities of quantum computing, the recent run-up in QUBT's price has me inclined to wait for evidence of sustained revenue growth and a clear path to profitability before investing. 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Yahoo
7 days ago
- Business
- Yahoo
Quantum Computing (QUBT) Earns 'Buy' Reco, Gets Boost
We recently published a list of . In this article, we are going to take a look at where Quantum Computing Inc. (NASDAQ:QUBT) stands against other top-performing companies on Tuesday. Quantum Computing saw its share prices rise by 5.51 percent on Tuesday to close at $15.13 apiece, as investors took path from the optimistic outlook from an investment firm. Since Ascendiant Capital Markets maintained its 'buy' recommendation on Quantum Computing Inc.'s (NASDAQ:QUBT) stock on Friday, investors resumed buying positions, extending the stock's rally to a third straight day today. The adjustment was further supported by a higher target of $22 versus the $14 previously. The new target represented a 45-percent upside from its latest closing price. In the first quarter of the year, Quantum Computing Inc. (NASDAQ:QUBT) swung to a net income attributable to shareholders of $16.98 million from a $6.4 million net loss in the same period last year, primarily driven by a $23.6 million non-cash gain on the mark-to-market valuation of the company's warrant liability as a result of its merger with QPhoton in June 2022. A data analyst pouring over a chart, the intricacies of its lines being revealed. Revenues, on the other hand, rose by 44 percent to $39,000 from $27,000 in the same period last year. Overall, QUBT ranks 10th on our list of top-performing companies on Tuesday. While we acknowledge the potential of QUBT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey. Sign in to access your portfolio
Yahoo
12-06-2025
- Business
- Yahoo
Quantum Computing (QUBT) Skyrockets 25% on Jensen Huang's Optimistic Comment
We recently published a list of . In this article, we are going to take a look at where Quantum Computing Inc. (NASDAQ:QUBT) stands against other best-performing stocks on Wednesday. Quantum Computing rallied for a fourth consecutive day on Wednesday, jumping 25.38 percent to close at $18.97 apiece, following optimistic comments from Nvidia Corp. CEO Jensen Huang that the quantum computing industry has already reached an inflection point. In his keynote speech at a conference in Paris, Huang said that the application of quantum computers in areas that can solve interesting problems is now within reach. 'This is a really exciting time,' he noted. Quantum Computing Inc. (NASDAQ:QUBT) rallied alongside its peer, Rigetti Computing Inc. (NASDAQ:RGTI). Earlier this year, Huang walked back his comment that the practical use of quantum computers is only 15 to 30 years away. A data analyst pouring over a chart, the intricacies of its lines being revealed. Last week, Ascendiant Capital Markets reaffirmed its 'buy' recommendation on Quantum Computing Inc.'s (NASDAQ:QUBT) stock, while raising its price target to $22 from $14 previously. Overall, QUBT ranks 2nd on our list of best-performing stocks on Wednesday. While we acknowledge the potential of QUBT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock. READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires. Disclosure: None. This article is originally published at Insider Monkey.
Globe and Mail
11-06-2025
- Business
- Globe and Mail
Why Quantum Computing Stock Is Skyrocketing Today
Quantum Computing (NASDAQ: QUBT) stock is soaring in Wednesday's trading. The company's share price was up 30.9% as of 1:30 p.m. ET amid a pair of bullish catalysts. The stock had been up as much as 38.2% earlier in the day. Nvidia CEO Jensen Huang made comments this morning stating that quantum-computing technologies are approaching "an inflection point." In addition to a promising endorsement from one of the most influential CEOs in the tech space, Quantum Computing stock is likely also getting a boost from some promising inflation data. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » Nvidia CEO Jensen Huang is becoming more bullish on quantum technologies As the leader of the hardware company at the forefront of the artificial intelligence (AI) revolution, Jensen Huang's word carries a lot of weight in the tech sector. When it comes to emerging technologies, including quantum computing and self-driving vehicles, an endorsement from Huang or Nvidia can often be enough to power strong valuation rallies for relevant companies. Speaking at Nvidia's Paris GTC conference today, Huang said that quantum computing is "approaching an inflection point." The comments helped power huge gains for quantum stocks, and Quantum Computing has been the day's biggest winner so far. What does the latest inflation data mean for Quantum Computing stock? This morning, the Bureau of Labor Statistics published the latest core Consumer Price Index (CPI) data -- and the results were better than anticipated. Core CPI, which tracks the cost of a basket of goods and excludes food and energy items, increased 2.8% year over year in May and 0.1% on a sequential monthly basis. For comparison, economists had forecast that core CPI would increase 2.9% year over year and 0.2% on a monthly basis. Slower-than-anticipated inflation makes it more likely that the Federal Reserve will serve up an interest rate cut this year. In turn, this could create a stronger bullish environment for the stock market -- and growth stocks in particular. If the Fed does return to cutting rates this year, it could create a much more favorable backdrop for Quantum Computing and other high-risk, high-reward stocks in its corner of the tech industry. Should you invest $1,000 in Quantum Computing right now? Before you buy stock in Quantum Computing, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Quantum Computing wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $649,102!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $882,344!* Now, it's worth noting Stock Advisor 's total average return is996% — a market-crushing outperformance compared to174%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 9, 2025
