To The Moon

Overview.

There is a “new” (to me) quantum stock that I have just come across - $Quantum Computing Inc.(QUBT)$, that I like to share.

QUBT is an integrated photonics and quantum optics company focused on developing quantum machines and photonic chips, particularly thin film lithium niobate (TFLN) chips.

QUBT services both commercial and government markets in the US., with applications in (a) datacom, (b) telecom, and (c) quantum-enabled sectors.

Quarterly Earnings.

For Q1 2025, QUBT swung into profit for the first time.

• Revenue: came in at $39,000 that is up +44% YoY.

• Earnings per share: came in at $0.13 vs Q1 2024’s -$0.08. (see below)

• Net income: was $170 million vs Q1 2024 -$6.4 million (loss).

QUBT - Earnings per share

Not So-Good news.

However, operationally QUBT faced an operating loss of -$8.3 million.

This has widened from Q1 2024’s -$6.3 million, due to increased employee expenses.

Key Drivers.

• Completion of the Quantum Photonic Chip Foundry in Tempe, Arizona, with 5 initial orders, positioning QUBT for growth in the photonics market.

• Early traction in commercializing TFLN photonic chips and deepening engagement with government and commercial partners.

• Secured a $406,000 NASA subcontract to support NASA's Langley Research Center in developing quantum computing solutions for space LIDAR data analysis and additional product sales post-Q1, indicating expanding market reach.

• The other is a prime contract from NASA's Goddard Space Flight Center to use QUBT's Dirac-3 entropy quantum optimization machine for interferometric data processing, specifically for phase unwrapping.

Q2 2025 Guidance

• No explicit revenue or earnings guidance for the current quarter was provided in the available sources.

• This is just like some of the Mega cap tech stocks that refused to provide a guidance, given uncertainty that is still waiting to unfold as Trump’s tariffs remain a mystery on US economy.

• Management has highlighted expectations for continued growth in photonic chip demand and further engagement with commercial/government partners.

Analyst’s Assessment.

• Ascendiant Capital, Analyst, Edward Woo has a “Strong Buy” rating for this quantum stock.

• His 12-month price target is $14.00 (that’s +31.63% upside from Tue, 20 May 2025’s closing price of $11.51 per share). (see below)

• QUBT is ranked 11th among top quantum computing stocks, recognized for its operational progress and growth potential, although some analysts believe AI stocks may offer higher short-term returns.

Comparison.

Using 5 factors to compare why QUBT could be a “better” stocks than its peers eg. $Rigetti Computing(RGTI)$, $IONQ Inc.(IONQ)$ - see below

Buy Recommendation CONTEXT

• QUBT is seen as well-positioned in the quantum and photonics sector, with strategic milestones and a strong balance sheet.

• The recent profit is not from core business operations but from a one-time accounting gain, so caution is warranted.

• Compared to other quantum stocks, QUBT's operational progress and capital position are positives, but the “quantum computing” sector remains speculative and in early stages.

Summary

• QUBT has made significant operational advances, especially with its photonic chip foundry and initial orders.

• The recent profit is due to a non-cash gain, not underlying business profitability.

• While QUBT is favorably viewed among quantum stocks, the sector is high-risk and long-term focused; investors should weigh this against other opportunities, especially in AI.

Personal Viewpoints : (mine only)

• Quantum computing is still in its nascent stage, with lots of room for growth as its potential when harnessed 100% will be beyond what AI can achieve.

• The million dollar question is which quantum stock to invest in as there are many out in the stock market.

• The “safest” bet would be on a company that is profitable because that is proof of company’s ability to generate enough revenue for sustainability and then some more…..

• Having said that, QUBT’s Q1 2025 profit is a “little” dubious.

Perhaps a small stake would be a start so that it’s under investor’s constant radar ?

Must Read: Click on below titles to access. Repost to share, Like as encouragement ok. Thanks.

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• Do you think there is a future for Quantum Computing going forward ?

• Do you think QUBT is “the” quantum stock to watch going forward’?

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