Long relegated to science fiction, quantum computing seems to finally becoming a reality, and Wall Street has taken notice. 

What makes quantum computing so powerful is the use of “qubits.” Qubits are special because they can represent 0, 1, or both at the same time, thanks to a phenomenon called superposition. This allows quantum computers to explore many possibilities simultaneously, making them incredibly powerful for solving certain types of problems.

According to this report, the quantum computing market is set to expand from $885.4 million in 2023 to $12.6 billion by 2032. Although this may seem modest, another report by consulting major McKinsey states that the impact of quantum computing will be to the tune of $2 trillion by 2035 in four key sectors - chemicals, life sciences, finance, and mobility.

Yet, there seems to be a dearth of listed companies with a razor-sharp focus on this market. One of them is Leesburg, Virginia-based Quantum Computing (QUBT).

About Quantum Computing Stock 

Quantum Computing Inc. (QUBT) was founded in 2018. The company is focused on developing innovative quantum computing solutions, combining quantum software and hardware. Its goal is to make quantum computing accessible to businesses without requiring expertise in quantum mechanics. The company is currently valued at a market capitalization of $1.48 billion.

QUBT stock has been on a tear, soaring an eye-catching 1,202% over the past year.

This gravity-defying rise was halted recently when Capybara Research, a financial analysis firm specializing in investigative reports on publicly traded companies, published a report on Quantum Computing. The firm alleged “rampant fraud” and said “shareholders will be left with nothing when all is done.” Capybara disclosed a short position in QUBT stock on Jan. 16, and shares closed down 5.8% that day followed by a nearly 10% drop on Jan. 17. 

So, should Quantum Computing form a part of your portfolio? Let's have a closer look at the company.

Strong Q3 Report

While the company is not yet profitable, Quantum Computing’s results for the most recent quarter featured a doubling of revenues and narrower losses - both positive developments for the company. Third-quarter revenues surged to $101,000 from $50,000 in the year-ago period, while losses per share narrowed to $0.06 per share from $0.10 per share in the prior year. 

Further, net cash used in operating activities for the first nine months of 2024 also reduced, coming in at an outflow of $12.4 billion compared to $13.3 billion in the year-ago period. Overall, the company bolstered its cash balance from the start of the year to $3.1 million from $2.1 million. Short-term debt levels were also lower, at $923 million.

This reflects that the company is not only focused on growing its revenues during this phase, but it is also making efforts to manage its balance sheet prudently.

Strategic Drivers for QUBT

Quantum Computing has emerged as a promising force in the quantum computing and photonic technologies landscape, making significant progress toward commercialization. The company recently announced two notable orders that underscore the demand for its innovative thin film lithium niobate (TFLN) technology. 

The first, revealed on Nov. 13, marked an initial order for its TFLN photonic chip foundry, followed shortly by a second order from the University of Texas at Austin. This technology is rapidly gaining traction as a transformative material in photonics, crucial for applications like fiber optic communication, sensors, and quantum computing. With capabilities far surpassing traditional silicon semiconductors, TFLN is poised to drive a new wave of innovation in high-performance photonic devices.

QUBT’s ongoing efforts to complete its TFLN foundry in Tempe, Arizona signal a major milestone in its strategy to dominate the photonic integrated circuits market. With production expected to commence in the first quarter of 2025, the foundry will position the company to address growing demand across industries. The recent delivery of a quantum LiDAR prototype to Johns Hopkins University for $200,000 further demonstrates the commercial potential of the company’s technologies in diverse applications such as autonomous vehicles and precision mapping. Meanwhile, QUBT continues to strengthen its partnerships, extending its agreement with the Los Alamos National Laboratory to test the capabilities of its Dirac-3 quantum optimization machine. 

In addition to its hardware advancements, QUBT is focused on simplifying quantum adoption through its Qatalyst platform, which accelerates the development of quantum-ready applications that can run seamlessly on both classical and quantum systems. By reducing the barriers to entry, the platform is expected to foster a loyal customer base and support long-term revenue growth. On the financial front, the company has demonstrated robust momentum, securing $190 million in capital since late 2024, including a $100 million private placement in January 2025. This funding position bolsters its ability to scale production and invest in continued innovation, while the level of institutional backing reflects growing confidence in QUBT’s growth trajectory.

As Quantum Computing moves closer to full-scale commercialization, its advancements in photonics and quantum technologies signal significant opportunities for revenue generation. The company’s strategic vision, backed by strong financial support and cutting-edge technology, positions it well to capture a leadership role in these transformative industries. With production milestones on the horizon and increasing demand for its solutions, QUBT appears well-equipped to capitalize on the expanding quantum computing and photonics markets.

What Do Analysts Say About QUBT Stock?

QUBT stock has limited coverage on Wall Street, with the only analyst following the stock deeming it a “Moderate Buy.” The target price of $8.50 has already been surpassed, indicating an upward revision may be coming.