QUBT Stock Surges 3427% in a Year: Correction in Store or More Upside?

Quantum Computing Inc. QUBT shares are skyrocketing in 2025 as the company shifts from deep-tech R&D to a commercially focused quantum-photonics player. Key drivers include the launch of its entangled photon source for quantum communication, the operational rollout of its TFLN chip foundry, and rising adoption of its Dirac-3 optimization machine across sectors like aerospace and healthcare. With strengthened financials, strategic partnerships and the very recent inclusion in the Russell 2000 and 3000 Indexes, QUBT is fast emerging as a serious contender in the quantum tech arena. Let's delve deeper.

One-Year Stock Comparison

Despite facing a challenging industry-wide investment climate driven by tariffs, Quantum Computing delivered a staggering 3427% rally over the past 12 months, outperforming the industry, its benchmark, and the company’s main competitors. During this period, the broader Internet Software industry grew 35.5% and the S&P 500 index rose 13.8%.

In a year, the company’s archrivals like D-Wave Quantum QBTS and IonQ IONQ have risen 1251.6% and 489.3%, respectively.

However, despite this magnificent rally, QUBT stock still trades 27.8% below its 52-week high, suggesting there could be further upside potential as the company continues to expand into high-value markets like quantum-secure communications and advanced optimization.

Major Growth Drivers of QUBT

Commercial-Scale Quantum Photonics and Deployable Optimization Machines: A central pillar of Quantum Computing’s growth strategy in 2025 is the commercialization of quantum-ready photonics through its U.S.-based Quantum Photonic Chip Foundry in Tempe, AZ. Now fully built and operational, the facility enables in-house production of thin-film lithium niobate (TFLN) photonic integrated circuits (PICs), a critical capability in a field historically led by global suppliers. Early traction is evident, with five initial purchase orders, including one from a top Canadian research institute, and revenues already underway, with broader scaling expected in 2026. This positions Quantum Computing to serve high-growth markets in data communications, telecom, AI and quantum tech.

Complementing the foundry, QUBT’s Dirac-3 optimization machine offers a field-ready, room-temperature quantum system with low power needs (<100W) and compact size. It's already in use by institutions like NASA and Memorial Sloan Kettering for advanced sensing and molecular modeling. These real-world deployments demonstrate Quantum Computing's lead in SWaP-C-optimized quantum solutions, spanning government, academic and industrial applications.

Strengthened Financial Foundation: Between the fourth quarter of 2024 and the first quarter of 2025, Quantum Computing significantly strengthened its financial position, raising $92.1 million in the fourth quarter and an additional $93.6 million in the first quarter, bringing cash and cash equivalents to $166.4 million as of March 2025. The company also saw a reduction in liabilities, primarily from non-cash mark-to-market adjustments related to warrants and reported a net income of $17 million in the first quarter, signaling improved financial stability.

Index Inclusion: In May 2025, Quantum Computing was confirmed for inclusion in both the Russell 3000 and Russell 2000 Indexes, marking a significant milestone in its public market trajectory. This inclusion broadens the company’s visibility among institutional investors. As a result, QUBT stands to benefit from increased liquidity, a more diversified shareholder base and potential inflows of capital, which can provide long-term support for its stock as it scales commercialization of its quantum and photonic technologies.

Estimates for QUBT

The Zacks Consensus Estimate for Quantum Computing’s 2025 earnings implies a 90.4% improvement year over year.

Average Target Price Shows Limited Near-term Upside

Based on short-term price targets, Quantum Computing is currently trading 12.45% above its average Zacks price target.

Hold QUBT Now

While QUBT has demonstrated impressive momentum in 2025, its Zacks Rank #3 (Hold) suggests a neutral stance in the near term. The stock’s current price indicates limited short-term upside and potential overvaluation risks, especially following its 3427% rally over the past year. Meanwhile, competitors like IonQ are accelerating toward a fault-tolerant, cloud-integrated quantum system. On the other hand, D-Wave Quantum is rapidly commercializing its annealing-based platforms for enterprise use. Both IONQ and QBTS have made strategic acquisitions and technical breakthroughs that position them strongly in the evolving quantum stack. Given this competitive landscape and the stock’s stretched valuation, investors may want to wait for a pullback or clearer earnings visibility before expanding their position in Quantum Computing. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

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

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