Quantum Computing (QUBT) Sheds 9.3% After Weak Analyst Rating

We recently published 10 Big Names Investors Are Dumping. Quantum Computing Inc. (NASDAQ:QUBT) is one of the worst performers on Wednesday.

Quantum Computing fell by 9.32 percent on Wednesday to finish at $10.22 apiece as investors soured on an analyst’s weak rating in its initial coverage for its stock.

In a market report, Wedbush issued a “neutral” rating on shares of Quantum Computing Inc. (NASDAQ:QUBT), alongside a $12 price target. Still, the figure marks a 17 percent upside potential from its latest closing price.

Its rating for Quantum Computing Inc. (NASDAQ:QUBT), however, is notably more conservative as compared with the latter’s counterparts, namely IonQ, Rigetti Computing, and D-Wave Quantum, which were rated “outperform.”

“Quantum computing remains in its nascent stages, but we view it as a transformational technology with significant long-term potential which we believe will ultimately represent the next frontier of computing,” Wedbush said.

“We expect that by the end of the decade, quantum computing companies will represent a larger share of the total spend on compute from what is a very small base today. Specifically, we project that quantum computing spending on the four covered companies could reach just under 2 percent of total compute expenditures by 2030, from virtually nothing today, as the technology moves from research to commercial applications,” it added.

“The combination of significant [total addressable market] growth, real-world benefits from optimization, and potential energy efficiencies makes quantum a generational investment theme.”

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.