Quantum Computing Inc. (QUBT): Why This Quantum Stock Doesn't Add Up

When tech giants like Alphabet, IBM, and Nvidia started pouring billions into quantum computing, it created a feeding frenzy for investors seeking the next big innovation. But one “pure-play” quantum computing company—Quantum Computing Inc. (NASDAQ: QUBT)—has become a cautionary tale about separating genuine innovation from outrageous valuations.

The Valuation Premium That Breaks the Math

QUBT trades at a premium so extreme it barely qualifies as investment analysis—it’s closer to financial fiction. The company generated just $546,000 in revenue over the trailing 12 months (TTM), yet its market cap sits at $2.7 billion. That translates to a price-to-sales (P/S) ratio exceeding 3,000 times.

To put this in perspective: Nvidia, a company that actually manufactures chips millions of people depend on, typically trades between 20 and 40 times sales. Even QUBT’s closest competitors look conservative by comparison. D-Wave Quantum, IonQ, and Rigetti Computing all trade at multiples that, while high, are merely fractions of QUBT’s astronomical valuation. The company’s photonics technology—which does operate at room temperature and requires less power than competing superconducting systems—is innovative, but uncertainty over which quantum approach will ultimately dominate makes such a price tag impossible to justify.

Share Dilution: Your Stake Becomes a Smaller Fraction

Here’s where things get particularly painful for anyone considering investing. QUBT maintains a robust cash balance of $1.5 billion, crucial for funding the expensive research and development quantum computing demands. But most of that cash didn’t come from profits. It came from issuing new shares—lots of them.

In just three years, QUBT’s outstanding shares quadrupled from roughly 60 million to 224 million. If you invested three years ago, your ownership stake would now represent only a fraction of what you originally held—roughly one-quarter of your initial position. While share issuance can work if the company transforms that capital into revenue and growth, QUBT’s earnings remain negligible.

Trapped in an Increasingly Crowded Field

The broader competitive landscape only worsens QUBT’s odds. The company isn’t just competing against fellow pure-play quantum startups. Alphabet, IBM, and Nvidia each command vastly more resources, established customer bases, and development pipelines. These tech behemoths are making serious bets on quantum computing through internal initiatives and partnerships.

QUBT’s revenue barely registers as a fraction of its direct competitors, let alone the established players. With a crowded field, a richly inflated valuation, and an unproven technology pathway, the risk-reward simply doesn’t work.

The Bottom Line: Too Much Hope, Not Enough Reality

Could QUBT’s photonics approach prove superior? Possibly. But so could D-Wave’s, IonQ’s, and Rigetti’s approaches. The honest truth is that no one knows which quantum computing method will ultimately win. Paying 3,000 times sales for that gamble seems less like investing and more like speculation.

Before you commit capital to QUBT, ask yourself: Are you betting on quantum computing as a technology, or are you betting on this specific company at this specific valuation? For most investors, the answer should be a firm “no.”