Quantum Computing Stocks: Is Now the Time to Bet on QUBT?

The quantum computing sector is at a pivotal moment, with breakthroughs in hardware, software, and real-world applications driving exponential growth potential. Among the companies leading this revolution, Quantum Computing Inc. (QUBT) has emerged as a key player, but its stock remains contentious. Is the convergence of recent advancements—partnerships, patents, and operational milestones—a sign that QUBT is primed for a breakthrough? Or does its precarious valuation and legal risks outweigh the opportunities? Let’s dissect the fundamentals and catalysts to find out.

Recent Advancements: QUBT’s Momentum in 2025

QUBT has been aggressively building partnerships and scaling its infrastructure in 2025, signaling progress toward commercialization. Key milestones include:

1. Strategic Partnerships:
2. Sanders TDI Collaboration: In January 2025, QUBT partnered with the Sanders Tri-Institutional Therapeutics Discovery Institute to deploy its Dirac-3 quantum optimization machine for drug discovery. This marks a critical step in leveraging quantum computing for biomedical research.
3. NASA Contract: A $406,000 subcontract in April 2025 with NASA aims to use QUBT’s quantum computers to improve LIDAR data analysis, addressing a longstanding technical challenge in space observation.

4. Automotive and Academic Sales: QUBT sold its EmuCore reservoir computing device to a major automotive manufacturer and its Quantum Photonic Vibrometer to Delft University of Technology, expanding its footprint in industrial and academic markets.

5. Foundry Completion:
   QUBT’s Tempe, Arizona-based quantum photonic chip foundry became operational in early 2025, enabling 150mm wafer production. With five initial orders secured by Q1 and two more post-quarter, the foundry’s scaling could drive significant revenue growth in 2026 and beyond.

6. Patent Breakthroughs:
   A U.S. and global patent for quantum-secured privacy-preserving computations (awarded in 2023 but highlighted in 2025) enables secure authentication and encryption using entangled photons. This technology, already commercialized in a two-node system, positions QUBT to capitalize on the $80B+ cybersecurity market.

Valuation: Bargain or Bubble?

While QUBT’s advancements are promising, its valuation metrics are starkly negative compared to peers. As of May 2025:
- P/S Ratio: 15.1x, down sharply from over 1,000x in late 2024, suggesting a correction in investor sentiment.
- EV/EBITDA: -72.21x (negative due to losses), far below industry averages of 13.8x–18.8x.
- ROE: -36.56%, worse than IonQ (-36.82%) and Rigetti (-51.56%), though better than its 3-year average of -1,005.99%.

The disconnect between QUBT’s operational progress and its valuation could create an opportunity. With a market cap of $1.02B and a cash position of $166M, QUBT is less leveraged than peers but faces skepticism over its ability to scale revenue. Its Q1 2025 revenue of $39,000 (up 44% YoY but minuscule in absolute terms) underscores the early-stage nature of its business.

Catalysts for Growth

1. Foundry Scaling: The Tempe facility’s capacity expansion could lead to revenue from foundry services, chip sales, and licensing.
2. Partnership Pipeline: Contracts with NASA, automotive giants, and academic institutions could convert into recurring revenue streams.
3. Cybersecurity Commercialization: The quantum authentication patent, if integrated into enterprise solutions, could unlock high-margin opportunities.

Risks: Legal Headwinds and Market Realities

• Class Action Lawsuit: A March 2025 lawsuit alleges QUBT overstated its partnerships and technology capabilities. If upheld, this could drain resources and erode investor confidence.
• Revenue Volatility: QUBT’s Q1 2025 revenue missed estimates by 61%, and its gross margins remain unstable.
• Competitive Landscape: Over 130 firms, including IBM and Google, are vying for quantum dominance. QUBT’s 0% market share and lack of a dominant product could delay profitability.

Verdict: A High-Risk, High-Reward Bet

QUBT’s stock presents a compelling asymmetric opportunity for risk-tolerant investors. Its partnerships, foundry completion, and cybersecurity patent suggest it’s not just a “story stock” but a company executing on its roadmap. The lawsuit and revenue struggles are legitimate concerns, but with a strengthened cash position ($166M) and a P/S ratio that’s 98.5% lower than its 2024 peak, the downside may be limited.

Investment Thesis:
- Buy: For investors willing to bet on near-term catalysts like foundry revenue ramp-up and cybersecurity commercialization.
- Hold: For those awaiting clearer revenue traction and resolution of the lawsuit.
- Avoid: For risk-averse investors due to execution risks and valuation headwinds.

Final Take

Quantum computing is a marathon, not a sprint. QUBT’s 2025 milestones—particularly its foundry and partnerships—signal progress, but the path to profitability remains uncertain. For those willing to take a position in a transformative industry, QUBT offers a unique entry point at current valuations. However, investors must weigh the potential upside against the very real risks of litigation and market competition. The question isn’t whether quantum computing is the future—it’s whether QUBT can seize its share of it.

Act now if you believe in QUBT’s execution, but proceed with caution.