Can Quantum Computing's Government Contracts Boost Future Growth?

Quantum Computing Inc. or “QCi” QUBT is continuously focused on strengthening its engagement with strategic government partners. During the second quarter, the company awarded a subcontract, valued at up to $406,478, to support National Aeronautics and Space Administration's (“NASA”) Langley Research Center. 

Under the project, QCi will apply its Dirac-3 quantum computer to develop quantum-based techniques for removing solar noise from space-based LIDAR data, an obstacle that has historically limited NASA’s ability to conduct reliable daytime atmospheric sensing. 

Building upon QCi’s prior work with NASA, the initiative is aimed at reducing the mission size, weight, and power requirements, reinforcing QCi’s role as a trusted partner in delivering quantum-powered solutions for real-world scientific challenges.

Soon after the second quarter, QCi was awarded a contract by the National Institute of Standards and Technology (“NIST”), part of the U.S. Department of Commerce, for the design and fabrication of thin-film lithium niobate (TFLN) photonic integrated circuits (PICs). The contract leverages QCi’s cutting edge prototyping capabilities and foundry services to deliver mission-critical photonic components on an accelerated timeline. The project scope includes design support and fabrication of TFLN-based PICs, with performance requirements focused on low optical-loss waveguides, high-performance modulators, and narrow-band filters.

This is QCi’s first direct government contract for its TFLN foundry services and represents a key step in its plans to become a trusted U.S.-based supplier of advanced photonic technologies.

Peer Updates

IonQ IONQ recently signed a memorandum of understanding (MOU) with the U.S. Department of Energy to advance the development and deployment of quantum technologies in space. Under the agreement, IonQ will provide the design and execution of an orbital demonstration of quantum-secure communications using its satellite platform. The collaboration will also explore additional quantum applications in space, including alternate position, navigation, and timing, time synchronization, quantum networking, and sensing.

Rigetti Computing, Inc. RGTI was awarded a three-year, $5.8 million contract from the Air Force Research Laboratory to advance superconducting quantum networking. Rigetti will collaborate with QphoX on the project, a Dutch quantum technology startup. Per the agreement, superconducting microwave qubits developed by Rigetti will be combined with single-photon microwave-optical transducers developed by QphoX. By transferring excitations from the qubit chip resonators to the transducers, the individual microwave photons will be converted to optical photons while still preserving their quantum character.

QUBT’s Price Performance

In the past year, QCi’s shares have skyrocketed 2642%, outperforming the industry’s 42.3% growth. The S&P 500 composite has grown 19.6% in the same period.

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Expensive Valuation

QUBT currently trades at a forward 12-month Price-to-Sales (P/S) of 2414.60X compared with the industry average of 5.51X.

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QUBT Stock Estimate Trend

In the past 30 days, its loss per share estimate for 2025 has remained unchanged at 17 cents.

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QUBT stock currently has a Zacks Rank #4 (Sell).

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This article originally published on Zacks Investment Research (zacks.com).

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