What Does QUBT Actually Do and Is the Stock a Buy Right Now?

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It seems, in these modern times, that everyone is on a wild dash to develop quantum technology. The race is, as they say, “on,” with firms clamoring to get their names etched into the annals of history. You can hardly toss a biscuit without hitting a new venture promising to turn the quantum computing world upside down. And why not? The market, some say, may one day be worth several hundred billion clams, and who wouldn’t want a piece of that?

Among the contenders, we find a peculiar little outfit called Quantum Computing Inc. (QUBT). But, and this is where things get delightfully complicated, the company is not, as one might assume, a pure-play on quantum computers. Oh, no! Instead, it’s based on light-based technology—photons, those elusive little particles of light that are, as one might say, “a jolly clever tool” for achieving high computing performance. This, dear reader, is the stuff that makes the company rather intriguing.

What exactly is it that Quantum Computing Inc. is up to, and should investors be queuing up with checkbooks at the ready? Allow me to explain, with all the pomp and circumstance of a well-placed tea service at a garden party.

What does Quantum Computing Inc. actually do?

Quantum Computing Inc. (QCI), in its somewhat grandiose way, is developing photonic technology that takes full advantage of light’s quantum mechanical properties to carry out high-performance computing tasks. These include quantum computing (naturally), machine learning, cybersecurity, and a number of other applications that sound delightfully futuristic.

The company claims that this photonic technology is capable of delivering high bandwidth and rapid processing speeds, while consuming minimal amounts of energy—a far cry from the labyrinthine contraptions that other quantum computers require, which, if you’ll forgive my saying so, often require temperatures low enough to freeze the proverbial socks off a penguin.

QCI, with the ambition of a young Winston Churchill, envisions itself as the Nvidia of its field. That’s right, they’re dreaming of selling chips integrated with photonic circuits for an array of real-world applications. It’s a bold vision, to be sure, and one that could make even the most jaded venture capitalist sit up straight in his chair and think, “Well, that’s not half bad.”

At present, QCI’s chips are being crafted not from the usual silicon, mind you, but from a substance known as thin-film lithium niobate (TFLN). They’ve even gone so far as to set up a foundry to manufacture the TFLN components for their quantum machines. The grand plan? To refine this technology and shrink it down to the size of one of those Nvidia GPUs, which are as sleek and stylish as a tailor-made suit.

The business is far more potential than tangible results, at least for now

Now, before we get carried away with all this talk of photons and chips, let us pause for a moment and take a deep breath. You see, despite all the technical jargon and bright-eyed aspirations, Quantum Computing Inc. is still very much in the “let’s see if this works” phase of its existence.

Only recently, in fact, did QCI complete the construction of its foundry, and as of the first quarter of 2025, the company has received precisely five orders. Yes, you read that right: five. The bulk of their clientele, at present, consists of government and academic researchers—an interesting bunch, to be sure, but hardly the movers and shakers of the business world.

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In terms of revenue, QCI has managed to pull in a grand total of $385,000 over the last year. Now, I’m not one to pass judgment on anyone’s financial situation, but that is a rather modest sum, to put it mildly. Wall Street, ever the optimist, expects the company to finish 2025 with $600,000 in revenue, and only $2.9 million the following year. Yes, quite the leap from their current standing.

Meanwhile, market researchers like Mordor Intelligence suggest that the addressable market for photonic integrated circuits was valued at $15.4 billion in 2024 and is expected to grow to $38.4 billion by 2029. This all sounds rather promising, but with QCI’s revenues looking more like the pocket change one finds in the couch cushions, it’s clear that the company is not yet in a position to seize such a golden opportunity.

To add some spice to the mix, QCI has several heavyweights to contend with in the photonics space, including Cisco Systems, International Business Machines, and Marvell Technology. Hardly a group of amateurs, I dare say.

Is the stock a buy now? Putting all of this together

Well, now we arrive at the all-important question: Should one rush to buy shares in Quantum Computing Inc.? The short answer, as one might expect, is “not so fast, old chum.”

Given the company’s very early stage and its rather disappointing revenue figures, it would be fair to say that purchasing the stock today would be akin to placing a bet on a horse that has yet to see the starting gate. Wall Street analysts, bless them, are forecasting a market cap of $2.6 billion, based on next year’s projected revenue—an estimate that, I’m afraid, is more optimistic than a puppy that believes every stick thrown is the greatest thing in the world.

To summarize, while Quantum Computing Inc. may be trying to emulate the business model of the mighty Nvidia, the lack of revenue and its relatively small footprint in the photonics industry suggest that it is not quite ready to lead the charge. I would recommend waiting to see if the company can prove its worth, establish a larger revenue base, and perhaps show some signs of real promise. Until then, it seems prudent to hold back.

Patience, my dear investor, is a virtue. 🧐

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2025-07-30 13:59