Quantum Computing Stock QUBT Crumbles as AI Hype Fades and Losses Deepen
Quantum Computing Inc. (NASDAQ: QUBT) is facing renewed selling pressure as investor confidence wanes. Despite breakthroughs in photonic chi
Quick overview
- Quantum Computing Inc. is experiencing significant stock declines due to waning investor confidence, despite recent technological advancements and government contracts.
- The company's stock has fallen sharply, trading around $18.74, as skepticism grows regarding its valuation and financial sustainability.
- QUBT reported minimal revenue of $100,000 in the first half of 2025 against substantial losses, highlighting a disconnect between its innovations and financial health.
- While securing important partnerships, the company faces challenges in converting these into consistent earnings, raising concerns about its long-term viability.
Quantum Computing Inc. (NASDAQ: QUBT) is facing renewed selling pressure as investor confidence wanes. Despite breakthroughs in photonic chip production and key government contracts, the company’s persistent losses and limited revenue growth have reignited skepticism, sending its stock sharply lower this week.
Stock Under Pressure Amid Renewed AI Fatigue
QUBT’s stock extended its losing streak this week, falling 7% on Wednesday and a further 12% on Thursday, reflecting broader investor unease toward overvalued AI and quantum technology names. The stock now trades around $18.74, well below its recent highs, as traders increasingly question whether the company’s valuation aligns with its fundamentals.
After peaking above $26 in late 2024, QUBT shares plummeted below $5 early in 2025 before staging a short-lived recovery in mid-year. That rebound has since unraveled, underscoring ongoing volatility and the market’s hesitance to price in unproven long-term potential.
Technical Picture Suggests Fragility
From a technical standpoint, QUBT remains at a crossroads. The stock is struggling to hold above its 50-day moving average (yellow), a key short-term support level. A confirmed break below could pave the way for deeper declines toward the 100-day SMA near $17, and possibly a retest of summer lows around $14.
QUBT Chart Daily – Stuck Between 2 MAs
Weekly momentum indicators are also flashing warning signals, as the 20-week SMA faces renewed downward pressure, suggesting bearish sentiment is strengthening despite the company’s operational milestones.
QUBT Chart Weekly – Heading to the 20 SMA Again
Bleak Financial Landscape Overshadows Partnerships
While Quantum Computing Inc. continues to secure notable deals, its financial health remains a cause for concern. The company generated just $100,000 in revenue during the first half of 2025 against a net loss of $19.5 million. For the full year, analysts forecast revenue of roughly $400,000 and losses nearing $39 million, underscoring a widening disconnect between technological progress and financial sustainability.
QUBT holds about $349 million in cash, largely bolstered by a $188 million private placement, but its heavy R&D spending continues to erode margins. Profitability appears years away, with EBIT and profit margins still deeply negative.
The latest quarterly report painted a sobering picture: total revenue of $373,000, or just $0.0023 per share, highlighting the scale of its monetization challenge.
Contract Wins Offer Temporary Relief
Despite the financial strain, QUBT has scored several important partnerships that reinforce its technological relevance. A major milestone was reached through a U.S. government contract with the National Institute of Standards and Technology (NIST) for thin-film lithium niobate (TFLN) photonic circuits—the company’s first federal order in this area.
In addition, a Fortune 500 defense and electronics company placed a notable chip order, signaling growing corporate interest in QUBT’s domestic quantum manufacturing capabilities. These partnerships suggest that QUBT’s innovations are gaining institutional recognition, even as investors remain wary of its short-term outlook.
Foundry Progress and Industry Collaborations
Operationally, Quantum Computing Inc. achieved a key milestone earlier this year by completing its TFLN photonic chip foundry in Tempe, Arizona, marking its transition to in-house production. The foundry has begun testing and fulfilling initial client orders, including one from a top-five global research institution.
The company has also expanded its reach through collaborations—securing a NASA subcontract for LiDAR data processing, engaging with medical institutes on biomolecular simulations, and supplying hardware systems to universities and automakers exploring quantum applications.
Conclusion: Innovation Can’t Mask Investor Doubt
While Quantum Computing Inc. continues to make technical and operational progress, investors remain unconvinced that these advances will translate into sustainable profits. Mounting losses, limited revenue, and ongoing dilution risks are clouding sentiment just as enthusiasm for AI and quantum stocks begins to cool.
Unless QUBT can convert its high-profile partnerships into consistent earnings, the company risks becoming another victim of the fading AI investment bubble—rich in potential but poor in profitability.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save