Quantum Computing (QUBT.US) wins NASA order, another catalyst for the quantum computing industry

Zhitong Finance APP noticed that Quantum Computing (QUBT.US) stock soared for the second consecutive trading day after winning a contract from NASA. The company will apply its Dirac-3 entropy quantum optimization machine to support NASA's advanced imaging and data processing needs.

Quantum Computing's stock soared 51% by Tuesday's close. The company's stock surged nearly 70% on Monday. Since Friday, its stock has risen about 150%, and more than 500% since mid-November. Shares of other quantum stocks such as D-Wave Quantum (QBTS.US), Rigetti Computing (RGTI.US), and IonQ Inc (IONQ.US) also surged.

Danil Sereda, head of Beyond the Wall Investing, believes some of the quantum computing stocks' rapid rise will be a short-term event. The field is highly competitive, and only one or two companies may survive.

"If investors try to invest in multiple companies without understanding the specifics of their prospects, this fact will put them in an awkward position," Sereda said. "It is important not to buy the entire segment on the fly, as many of these companies will not survive due to the high technological threshold and the scarcity of market participants."

"Moreover, there is a significant gap between their soaring market capitalizations and actual performance," Sereda added. "For example, IonQ's market capitalization is over $9 billion despite continuous losses, while Rigetti's market capitalization is about $200 million but its revenue is declining. Similarly, Quantum Computing's stock is soaring, but its revenue is little and it is also in continuous losses."

Meanwhile, analyst Dilantha De Silva found IonQ to be the most promising for long-term growth among these stocks.

"While quantum computing stocks including IonQ are overvalued due to their strong performance year-to-date, I believe this is just the beginning for these companies from a long-term perspective, as we have yet to see the best of what this technology can offer," De Silva said. "Google's recent progress also suggests that mature quantum computers are not as far away as we initially thought."