Quantum Computing Stock: A Multitrillion-Dollar Opportunity Amidst Hype and Valuation Concerns

Quantum Computing trades for $18 per share, but a thorough valuation analysis is required to determine its potential as a long-term investment. The company has generated only $385,000 in revenue over the last 12 months, and its price-to-sales ratio is over 5,200. Despite this, Nvidia CEO Jensen Huang has praised the prospects of quantum computing, and some economists predict an interest rate cut from the Federal Reserve.

Quantum Computing (NASDAQ: QUBT) has captured investor attention with its meteoric rise in share price, trading at $18 per share as of July 2, 2025. The stock has surged by 2,480% over the past year, outperforming both the S&P 500 and the Nasdaq Composite. However, a thorough valuation analysis is required to determine if Quantum Computing represents a viable long-term investment.

Quantum Computing generated approximately $385,000 in revenue over the last 12 months. Despite this nominal revenue, the company boasts a price-to-sales (P/S) ratio of over 5,200. This valuation metric underscores the company's ambitious market cap, which is significantly higher than its actual sales. For comparison, during the dot-com bubble in the late 1990s, peak P/S multiples for companies such as Amazon, Microsoft, and Cisco ranged from 31 to 43. More recently, companies like Zoom Communications and Peloton Interactive experienced stratospheric valuations during the COVID-19 pandemic, with P/S multiples of 124 and 20, respectively [1].

Nvidia CEO Jensen Huang has publicly praised the prospects of quantum computing, and some economists predict an interest rate cut from the Federal Reserve, which could stimulate growth stocks like Quantum Computing. However, these macro-oriented narratives may not be sufficient to justify the company's current valuation. Quantum Computing's stock issuance, where 14,035,089 shares were sold at $14.25, indicates that management recognizes the stretched valuation and seeks to raise capital [1].

Management consulting firm McKinsey & Company forecasts that quantum computing could add trillions in economic value in the coming decades, signaling this technology could revolutionize the AI megatrend over the long run. However, successful quantum computing companies are still several years away from profitability, and the industry is fraught with uncertainty [2].

In conclusion, while Quantum Computing's share price may appear cheap at $18 per share, the company's valuation analysis reveals a highly speculative opportunity. Investors should approach Quantum Computing with caution and consider alternative investment options. The Motley Fool Stock Advisor team, for instance, has identified 10 best stocks to buy right now, excluding Quantum Computing [1].

References:
[1] https://www.nasdaq.com/articles/quantum-computing-stock-buy-less-20
[2] https://www.fool.com/investing/2025/07/20/2-top-quantum-computing-stocks-to-buy-in-july/