Why I Wouldn't Touch Quantum Computing Stock With a 10-Foot Pole

• Quantum Computing is investigating earlier scaling, but scaling is easier said than done.

• The contention could meaningfully propulsion up successful the coming years arsenic Quantum Computing tries to get going.

• 10 stocks we similar amended than Quantum Computing ›

Quantum computing is 1 of the much breathtaking concern trends astatine the moment. But the institution named Quantum Computing Inc. (NASDAQ: QUBT) isn't the safest mode to put successful the trend. In fact, I wouldn't interaction Quantum Computing banal with a 10-foot pole.

Don't misunderstand: Quantum Computing -- different known arsenic QCi -- has respective things going for it. First and foremost is its attack to quantum computing. Whereas galore companies are designing systems that trust connected cryogenic cooling, this institution is designing computers that run astatine country temperature. That whitethorn beryllium the much applicable semipermanent solution.

Moreover, QCi has the equilibrium expanse to marque immoderate waves successful this space. Between currency and investments, the institution has implicit $1.5 cardinal astatine its disposal. This liquidity volition assistance absorption tally its crippled program for the adjacent 3 years and beyond.

Investors should instrumentality a semipermanent presumption of astatine slightest 3 years erstwhile buying a stock. But successful this case, the way guardant for QCi is fraught with hazard that I'd similar to debar successful my portfolio.

The biggest hazard for QCi investors contiguous is execution risk. For the 3rd 4th of 2025, the institution generated gross of $384,000, and its full gross implicit the past 12 months was little than $1 million. In short, it's a probe signifier start-up hoping to scale.

QCi looks to fabricate its ain quantum computing hardware. Its existent facilities are conscionable for investigating processes and delivering prototypes to customers. Management hopes to enactment retired the bugs implicit the adjacent 3 years earlier scaling up accumulation to a commercialized level.

Scaling isn't easy, which is wherefore I accidental that there's execution hazard here. But the timetable besides amplifies the contention hazard for QCi. Many players successful the quantum computing abstraction are already scaling production, including immoderate with heavy acquisition successful foundries specified arsenic Intel.

Waiting 3 years to meaningfully standard the concern is the close prime -- you can't determination faster than your exertion oregon manufacturing processes. But waiting 3 years could enactment QCi behind, fixed the accelerated developments successful the space.

QCi has execution hazard and contention risk. But different hazard for investors contiguous is dilution of shareholder value. As mentioned, the institution has a large equilibrium sheet. But overmuch of its currency presumption was achieved by issuing caller shares. The illustration beneath shows however accelerated the outstanding stock number is going up.