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QUBT Surges 175% in 3 Months: What's Next as Quantum Race Heats Up?

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Key Takeaways

  • QUBT surged 175.7% in three months, fueled by milestones and a push toward quantum commercialization.
  • QUBT completed its Tempe foundry and secured a fifth customer, with Fab 2 plans underway to meet demand.
  • QUBT faces rising competition from QBTS and IONQ, both expanding aggressively in quantum technologies.

Quantum Computing Inc. (QUBT - Free Report) has emerged as one of 2025’s most electrifying deep-tech stories. Shares have skyrocketed 175.7% in the past three months, driven by a mix of operational milestones, bullish investor sentiment on the quantum sector and an aggressive strategic initiative toward commercialization.

Zacks Investment Research
Image Source: Zacks Investment Research

Quantum Computing’s first-quarter 2025 was also a turning point as the company shifted leadership and moved ahead with key strategic plans. Interim CEO Dr. Yuping Huang took over after Dr. Bill McGann’s retirement and reaffirmed QCi’s goal of providing practical, low-power, room-temperature photonic quantum machines for real-world use. Huang’s appointment ensures steady progress as the company works to expand the market reach of its quantum technology.

In Q1, QUBT completed its Quantum Photonic Chip Foundry in Tempe, enabling in-house production of thin-film lithium niobate (TFLN) circuits for AI, telecom, and quantum applications. With its fifth customer order secured and discussions underway for a second fab, QCi expects revenue acceleration in 2026 as demand continues to grow.

What’s Next?

Quantum Computing plans to focus on scaling up its foundry operations, with meaningful revenues expected in 2026 as testing and onboarding give way to larger orders. Commercial growth will depend on converting interest from industrial sectors like automotive and aerospace into sales, while expanding the team to support global go-to-market efforts. Plans for a second fab (Fab 2) are underway, aimed at boosting capacity to meet rising demand across AI, telecom, and quantum markets. With sector momentum rising, fueled by NVIDIA’s (NVDA - Free Report) bullish quantum outlook, QUBT is well-positioned. However, execution, dilution risk and peer competition remain key watchpoints.

Yet, Competitive Pressure Intensifies

D-Wave Quantum (QBTS - Free Report) : The company is gaining strong commercial momentum, reporting a 509% year-over-year revenue increase, positioning it as one of the top-performing quantum stocks this year. Its cloud-accessible Advantage2 system, equipped with over 4,400 qubits, reinforces its leadership in quantum annealing. The company is also expanding into gate-model computing and has secured $400 million to fuel growth and strategic acquisitions. With major partners like Mastercard and Ford, along with a growing patent portfolio, D-Wave is emerging as a formidable competitor in real-world quantum optimization.

IonQ  (IONQ - Free Report) : It is accelerating its leadership in trapped-ion quantum computing through strategic moves, including the acquisition of Lightsynq to boost photonic interconnects and a $1.075 billion deal to acquire Oxford Ionics to advance modular, high-fidelity systems. Backed by the Texas Quantum Initiative and expanding cloud integrations, IonQ is positioning itself for fault-tolerant computing and quantum networking, directly challenging QUBT as both companies scale in photonics and communication technologies.

Average Target Price for QUBT Suggests Limited Upside

Based on short-term price targets, Quantum Computing is currently trading 2.3% above its average Zacks price target.

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Image Source: Zacks Investment Research

QUBT currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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