Quantum Computing (QUBT) Stock Soars 591%, Yet Faces Significant Risks
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Source: Yahoo Finance
- Stock Surge: Quantum Computing (QCi) has seen its stock price soar by 591% over the past three years, yet it only generated $546,000 in revenue, highlighting the risks associated with its high valuation.
- Share Dilution: The company has quadrupled its outstanding shares from approximately 60 million to 224 million over the last three years, significantly reducing existing shareholders' stakes and indicating reliance on new share issuance for funding.
- Intense Competition: QCi faces fierce competition from companies like D-Wave, IonQ, and Rigetti in the quantum computing space; while its photonics technology operates at room temperature, it remains uncertain whether it can lead the market.
- Valuation Risks: With a market cap of $2.7 billion and a staggering price-to-sales ratio exceeding 3,000, far above Nvidia's 20 to 40 range, investors should carefully weigh its growth potential against the complexities of market competition.
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Analyst Views on QUBT
Wall Street analysts forecast QUBT stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for QUBT is 17.00 USD with a low forecast of 12.00 USD and a high forecast of 25.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
4 Analyst Rating
2 Buy
2 Hold
0 Sell
Moderate Buy
Current: 11.130
Low
12.00
Averages
17.00
High
25.00
Current: 11.130
Low
12.00
Averages
17.00
High
25.00
About QUBT
Quantum Computing Inc. is an integrated quantum optics and nanophotonic technology company. The Company is utilizing integrated photonics and non-linear quantum optics to develop and deliver machines for quantum computing, reservoir computing, and remote sensing, imaging and cybersecurity applications. Its products are designed to operate at room temperature and low power. Its Entropy Quantum Computer is a full-stack system, incorporating the Company’s custom user interface software Qatalyst, which allows users to avoid the complexity of software development kits at the circuit level and has evolved from the Company’s primary Software as a Service offering to the software that powers its offerings. Its Reservoir Computer is a device that uses an integrated circuit that can be reprogrammed after manufacturing and optimized for recurrent neural network applications. Its Quantum Photonic Vibrometer is a proprietary, instrument for remote vibration detection, sensing, and inspection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Rigetti vs QCi: A Comparative Analysis of Quantum Computing Investments
- Market Performance Divergence: Over the past 12 months, Rigetti's stock surged nearly 60%, while QCi's rose only 3%, indicating Rigetti's strong performance and investor confidence in the quantum computing market.
- Technological Comparison: Rigetti accelerates electrons through superconducting loops to achieve quantum states, which, despite high operational costs, offers higher gate fidelity, maintaining its competitive edge; in contrast, QCi's photonic chips show manufacturing potential but are costly to produce in small quantities.
- Future Revenue Projections: Analysts expect Rigetti's revenue to grow from $7.6 million in 2025 to $45.4 million in 2027, highlighting the market potential of its new systems, while QCi is projected to reach $15 million in revenue by 2027, though it still faces profitability challenges.
- Investment Recommendation: While both companies are high-risk investments, Rigetti stands out as a more attractive option due to its established technology and clear roadmap for future growth, whereas QCi must overcome significant manufacturing hurdles to compete.
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The Truth Behind Quantum Computing Stocks' Surge
- Staggering Returns: In 2025, stocks of IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc. saw annual returns as high as 6,200%, drawing investor interest in this potentially disruptive technology, yet such rapid growth may be unsustainable.
- Maturity Issues: While quantum computing is projected to create $1 trillion in global economic value by 2035, these companies are still in the early stages of commercialization and are unlikely to solve practical problems effectively in the foreseeable future, posing risks for investors.
- Dilution Dependency: To sustain operations, the four companies raised $4.15 billion through share dilution in 2025, which, while providing funding for research, may burden existing shareholders and impact stock performance.
- Low Competitive Barriers: The quantum computing industry has a low barrier to entry; although companies like IonQ and Rigetti enjoy first-mover advantages, investments from tech giants like Alphabet and Microsoft could intensify competition, potentially undermining their market positions.
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