Quantum Computing (QUBT) Tumbles as Funds Flee to Big Names

We recently published 10 Stocks With Massive Losses; AI Stocks Not Spared. Quantum Computing Inc. (NASDAQ:QUBT) is one of the worst performers on Monday.

Quantum Computing extended its losing streak to a 4th straight day on Monday, as investor funds shifted into the giant ones amid the start of the third quarter earnings season.

Quantum Computing Inc. (NASDAQ:QUBT) declined alongside its counterparts, namely Rigetti Computing Inc., IonQ Inc., and D-Wave Quantum Inc., suggesting that investor appetite for quantum computing stocks has tapered off and shifted to the country’s largest earners.

The quantum computing industry, on the other hand, remains a pre-profit sector despite rising valuations and government backing, relying mostly on a series of fundraising programs to ramp up business expansion.

For its part, Quantum Computing Inc. (NASDAQ:QUBT) recently raised $750 million in fresh funds from a private placement with institutional investors, covering more than 37.18 million shares.

Quantum Computing Inc. (NASDAQ:QUBT) said proceeds from the offer will be used to fund commercialization, pursue strategic acquisitions, establish volume production capabilities, expand sales and engineering personnel, as well as for working capital and other general corporate purposes.

While we acknowledge the potential of QUBT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.

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Disclosure: None. This article is originally published at Insider Monkey.