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Microsoft (MSFT) exec Mitra Azizirad wrote in a blog post on Tuesday, Jan. 14 that “We are at the advent of the reliable quantum computing era. And we are right on the cusp of seeing quantum computers solve meaningful problems and capture new business value.” The blog post accompanied an announcement that Microsoft would be launching an initiative to help businesses prepare for quantum solutions.
These words alone are positive for quantum computing startups like Rigetti Computing (RGTI), IonQ (IONQ), and Quantum Computing (QUBT), but they are particularly positive in how they compare to commentary from other tech execs. Nvidia (NVDA) CEO Jensen Huang recently warned analysts at CES 2025 that useful quantum computers were 15-30 years away. Meta Platforms (META) CEO Mark Zuckerberg piggybacked on that in a recent interview with Joe Rogan.
For investors, Microsoft’s optimism is clearly a welcome change of pace. Quantum computing stocks are soaring in Wednesday, Jan. 15 trading, with QUBT shares up 40%.
With potentially renewed confidence in the industry, is it time to buy shares of Quantum Computing?
About Quantum Computing Stock
Quantum Computing (QUBT) bills itself as an “integrated photonics company” that specializes in quantum physics, quantum optics, nanofabrication, and quantum algorithm development, among other things. Its clientele are looking for solutions that touch artificial intelligence and cybersecurity, two hot areas.
The company currently has five commercial products. Dirac-3 is its third-generation quantum computer, uQRNG is a random quantum number generator, and EmuCore is its first-generation reservoir computing product. Quantum Computing says that EmuCore helps users with processes like text classification and image recognition.
The New Jersey-based company is valued at a market capitalization of $958 million, and its shares have been on a wild ride over the last year.
QUBT stock is up 1,170% over the past 52 weeks, and up an even more impressive 1,320% over the past three months.
However, shares are down nearly 40% in the year to date, likely driven by commentary from Huang and Zuckerberg.
Q3 Snapshot: Revenue Doubles
Quantum Computing reported on Nov. 6 that its third-quarter revenue doubled from $50,000 in the year-ago period to $101,000. The company attributed this surge in total sales to extending a contract that it has with Johns Hopkins University on a quantum LiDAR prototype. Investors will likely appreciate the year-over-year growth but also note the relatively small sum of $101,000 in total revenue. This reflects that QUBT, alongside its peers, are still scaling up their commercial business. Other pure-play quantum computing startups have still yet to generate any commercial revenue.
Other positives for investors included that its operating expenses narrowed 18% year-over-year from $6.6 million to $5.4 million, a result of various cost-cutting initiatives including headcount reductions. Its cash balance also increased in the third quarter by $1 million to $3.1 million.
Lastly, its net loss narrowed to $5.7 million from $7.1 million, coming in at a loss of $0.06 per share.
Is QUBT Stock a Buy Now?
Just one analyst covers QUBT, with a “Moderate Buy” rating and a price target of $8.50. This is below its current trading price of $10.35.
However, Quantum Computing has shown in recent weeks that it is capable of commanding a great deal of investor attention. With a positive rating and industry support from tech giants like Microsoft, QUBT shares could make sense for investors with large risk appetites.
