Is Quantum Computing Stock a Buy for Less Than $20?
Key Takeaways
Quantum computing is an exciting new area emerging within the artificial intelligence (AI) realm.
Article Overview
Quick insights and key information
4 min read
Estimated completion
investment
Article classification
July 19, 2025
03:30 PM
The Motley Fool
Original publisher
What caught my attention is Quantum computing is an exciting new area emerging within the artificial intelligence (AI) realm
Over the last several months, artificial intelligence (AI) enthusiasts have become intrigued by an emerging nology known as quantum computing (an important development)
Additionally, Although quantum applications are not yet operating at scale, industry re suggests the nology could be a game changer
Management consulting firm McKinsey & Company forecasts that quantum computing could add trillions in economic value in the coming decades, signaling this nology could revolutionize the AI megatrend over the long run, amid market uncertainty
Additionally, One company that has received quite a bit of attention in the quantum arena is Quantum Computing (QUBT -1
However, Additionally, Quite an apos name, if you ask me, amid market uncertainty
With s trading just below $20 as of this writing, is now a good time to scoop up s of Quantum Computing stock, in today's market environment
What's with all the hype around Quantum Computing stock
Over the last year, s of Quantum Computing have risen by 2,480% -- handily outperforming the S&P 500 and Nasdaq Composite
QUBT data by YCharts With such tantalizing gains, Quantum Computing's must be on a roll, right, in light of current trends
Well, not quite, in this volatile climate
Moreover, Over the last 12 months, Quantum Computing has only generated $385,000 in revenue (which is quite significant), in light of current trends
Meanwhile, To me, the meteoric rise in Quantum Computing's price can be attributed to a number of macro-oriented narratives as opposed to anything company-specific
Furthermore, For example, Nvidia CEO Jensen Huang has spoken favorably the spects of quantum computing on multiple occasions
Conversely, Considering how important Nvidia's nology stack is for the broader AI narrative, investors ly find it encouraging that the visionary CEO appears bullish on the quantum computing opportunity
Nevertheless, On top of that, some economists think an interest rate cut from the Federal Reserve could be on the horizon
On the other hand, Diminishing rates could be viewed positively by investors, and growth stocks such as Quantum Computing would ly be particular beneficiaries of renewed investor enthusiasm
However, Image source: Getty Images
Conversely, Assessing Quantum Computing's valuation Per the chart below, Quantum Computing boasts a price-to-sales (P/S) ratio over 5,200
When you assess Quantum Computing from this perspective, the company's nominal revenue levels really come into focus, in today's market environment
How can a company generating only a few hundred thousand dollars in sales achieve a multibillion-dollar market cap
QUBT PS Ratio data by YCharts In my eyes, Quantum Computing stock is largely trading on a bullish narrative at the intersection of AI and quantum applications
To drive how silly Quantum Computing's valuation really is, consider the ing: Dot-com bubble: During the most euphoric days of internet hype during the late 1990s, companies such as Amazon, Microsoft, and Cisco witnessed peak P/S multiples in the range of 31 to 43, in light of current trends
Furthermore, COVID-19 bubble: In more recent history, companies such as Zoom Communications and Peloton Interactive witnessed stratospheric valuations as investors bought into the narrative that these companies would capitalize on remote work trends and the at- economy, in today's market environment
Zoom's P/S peaked at around 124 while Peloton's high was roughly 20
Is Quantum Computing stock a buy right now
According to recent company filings, Quantum Computing recently issued 14,035,089 s at a purchase price of $14. 25 in an effort to raise capital, considering recent developments
Considering the company barely generates revenue and is unfitable, it was only a matter of time before Quantum Computing faced a liquidity crunch
I see this issuance as a sign that management understands how stretched the company's valuation has become; therefore, it took strategic advantage of current inflated prices
While Quantum Computing stock might appear cheap at $18 per, the valuation analysis explored above underscores that the company is trading well past the point of a bubble (noteworthy indeed), given current economic conditions
Furthermore, the recent stock issuance could subtly imply that management does not believe the current valuation is sustainable (remarkable data)
To me, Quantum Computing is a highly speculative opportunity that is best avoided for now
John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors
Adam Spatacco has positions in Amazon, Microsoft, and Nvidia (which is quite significant)
The Motley Fool has positions in and recommends Amazon, Cisco Systems, Microsoft, Nvidia, Peloton Interactive, and Zoom Communications
The Motley Fool recommends the ing options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft
The Motley Fool has a disclosure policy.
Related Articles
More insights from FinancialBooklet