Is Quantum Computing (QUBT) Stock a Buy on This Bold Technological Breakthrough?
Quantum computing stocks are heating up again, offering investors a front-row seat to what could be the next massive tech revolution. Even Nvidia (NVDA) CEO Jensen Huang, once skeptical about near-term adoption, recently said quantum computing was at an “inflection point,” signaling a dramatic shift from his earlier stance that it was “decades away.” Companies in this space are finally beginning to move from the research lab to real-world commercialization.
Quantum Computing (QUBT) just hit a major milestone in that journey. The company announced the successful shipment of its first commercial entangled photon source to a South Korean research institution. This cutting-edge product is a foundational piece of QUBT’s quantum cybersecurity platform, which won a 2024 Edison Award. The shipment not only showcases the company’s ability to execute globally, but also underscores growing demand for integrated quantum solutions.
With real momentum behind it and a clear roadmap ahead, QUBT could be a high-risk, high-reward play for investors looking to capitalize on the coming wave of quantum adoption.
Based in Hoboken, New Jersey, Quantum Computing is an integrated photonics company that focuses on the development of quantum machines for both commercial and government markets in the United States. The company specializes in thin-film lithium niobate chips. These chips are central to QUBT’s mission of building quantum machines that operate at room temperature and require low power.
Valued at $2.7 billion by market cap, QUBT shares have exploded over the past year, soaring more than 3,000%. However, the stock has cooled in 2025, rising just 17.4% year-to-date amid growing skepticism over the commercialization timeline for quantum technology.
Following last year’s sharp rally, QUBT’s valuation has reached nosebleed territory, with a staggering price-sales ratio of 7,475x, far above the sector median. This suggests the stock is extremely overvalued compared to its industry peers.
On May 16, Shares of QUBT popped nearly 40% in a single trading session after Quantum Computing reported Q1 results that illustrate both nascent revenue traction and the substantial investments required to advance its quantum photonics roadmap.
The company recognized approximately $39,000 in revenue for the quarter, representing a 42.7% year-over-year increase from a similarly low base. However, this figure fell roughly 61% short of consensus forecasts, highlighting the early stage nature of commercial adoption.
Gross margin contracted to 33.3% from 40.7% a year earlier, While net income was reported at nearly $17 million or $0.13 per share, beating the estimate of $0.08, it was driven primarily by a non-cash gain on the mark-to-market valuation of warrant-related derivative liabilities.
Operating expenses rose to approximately $8.3 million, up from $6.3 million in the year-ago quarter, as the company expanded staffing and advanced its Quantum Photonic Chip Foundry in Tempe, Arizona.
The balance sheet remains robust: cash and cash equivalents totaled about $166.4 million with no debt, providing a multi-year runway at current expenditure levels. Revenue divisions are still emerging, with initial sales tied to prototype devices, quantum cybersecurity platforms, and early foundry orders, but detailed segment reporting is limited given the infancy of commercial deployments.
Looking ahead, management indicated they expect only modest photonic foundry revenue in the back half of 2025, with revenue likely to accelerate in 2026 as additional customers come online.
Earlier this year, Quantum Computing disclosed collaborations with NASA’s Langley Research Center and the Sanders Tri-Institutional Therapeutics Discovery Institute. These partnerships were formed to validate their quantum photonic technologies in demanding, real-world settings, removing sunlight noise from space-based LiDAR and enhancing drug discovery workflows.
On May 12, Quantum Computing said it has completed its Quantum Photonic Chip Foundry in Tempe, Arizona, positioning it to meet demand in data communications and telecommunications. This facility enables scalable production of entangled photon sources, enhancing QCI’s competitive standing against established photonics firms and emerging quantum hardware startups. The foundry’s completion transitions R&D toward revenue generation.
For now, only a single analyst covers QUBT stock, assigning it a “Strong Buy” rating with a price target of $22, implying upside of 14%.
For investors, QUBT remains a highly speculative stock with unique technology but limited commercial traction. Despite partnerships and bold claims, it lags far behind the commercial sucess of industry giants like International Business Machines (IBM) and Nvidia (NVDA). Without a clear path to profitability or a meaningful share of the market, its lofty valuation is difficult to justify in today’s competitive and capital-sensitive environment.
Lastly, investors should note that quantum computing stocks often move more on hype than fundamentals, making QUBT a highly speculative bet.
On the date of publication, Nauman Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
