QUBT Stock Bounces on Federal Contract, Quantum Computing Fortune 500 Deal
After months of volatility and steep pullbacks, Quantum Computing Inc. (NASDAQ: QUBT) is showing signs of renewed strength as major contract
Quick overview
- Quantum Computing Inc. (QUBT) is experiencing renewed strength following significant contracts, including a federal deal with NIST and a sizable order from a Fortune 500 company.
- The company's stock has seen dramatic fluctuations, peaking at $26 before crashing below $5, but recent support levels suggest a potential recovery.
- QUBT has established its own thin-film lithium niobate photonic chip foundry, with initial customer deliveries underway and encouraging pre-order traction.
- Despite these advancements, challenges such as rising costs and early-stage foundry adoption may hinder near-term revenue growth.
After months of volatility and steep pullbacks, Quantum Computing Inc. (NASDAQ: QUBT) is showing signs of renewed strength as major contracts and milestones spark fresh investor optimism.
Government and Fortune 500 Deals Drive Momentum
Quantum Computing Inc. surged nearly 10% today after securing two significant agreements. The first is a landmark federal contract with the National Institute of Standards and Technology (NIST) to design and manufacture thin-film lithium niobate (TFLN) photonic integrated circuits.
This marks the company’s first direct U.S. government order for TFLN services, underscoring growing demand for domestic quantum capabilities, which seem to be heading toward a Terminator type future, since the demand doesn’t come from the public, but from AI itself. Alongside that win, a Fortune 500 electronics and defense company placed a sizable chip order, further validating QUBT’s commercial prospects.
Stock History: A Rollercoaster Ride
QUBT’s stock performance has been nothing short of dramatic. From December 2024 to late that month, shares soared more than twentyfold, peaking around $26. But the rally quickly unraveled, with the stock crashing below $5 in early 2025.
Technical support levels have played an important role in shaping its path. The 50-week simple moving average (SMA) acted as a springboard, propelling the price back above $21 by July. After another pullback, the 20-week SMA (gray) has now provided support, and the recent bounce suggests momentum could be turning once again.
QUBT Chart Weekly – The 20 SMA Is Holding for Now
Building Out the TFLN Foundry
A key operational milestone came in the first quarter of 2025, when Quantum Computing completed its Tempe-based thin-film lithium niobate photonic chip foundry. Initially relying on shared facilities, the company now controls its own production pipeline, with tool testing, certifications, and initial customer deliveries underway.
Pre-order traction has been encouraging, with five purchase orders, including one from a top-five global research institution in January. While management expects only modest foundry revenue contributions in 2025, Q2 results could reflect the start of these efforts.
Expanding Reach Through Partnerships
QUBT has also widened its influence through high-profile partnerships and system sales. The company sold an EmuCore reservoir computing system to a major automaker, collaborated with the Sanders Tri-Institutional Therapeutics Discovery Institute on biomolecular modeling using its Dirac-3 quantum computer, and secured a NASA subcontract to improve LiDAR data interpretation in space applications. Additionally, Delft University acquired a quantum photonic vibrometer, signaling academic interest in its technologies.
Challenges Remain Despite Wins
Despite these advances, QUBT still faces hurdles. Foundry adoption is in its infancy, which could limit near-term revenue growth. Rising costs have pressured margins, with gross margin slipping to 33% this year from 41% a year earlier. Operating expenses are climbing due to higher staffing levels, while broader macroeconomic headwinds continue to weigh on the company’s profitability outlook.
Outlook: Quantum Computing Inc. remains a high-risk, high-reward story. Its contracts with NIST and a Fortune 500 defense client show growing validation, while its foundry launch positions it for long-term relevance in quantum photonics. However, financial strain and unpredictable share price swings mean the road ahead is likely to remain volatile.
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