Quantum Computing Inc. Surged Another 22% This Week; Here's Why

Introduction
 

Quantum Computing Inc. (QUBT), a constituent in our MunAiMarkets Pure-Play Quantum Computing Stocks Portfolio, is an integrated photonics company that provides quantum machines to commercial and government markets in the United States. QUBT jumped almost 22% in the week ending June 13 thanks to a confluence of bullish analyst checks, standout quarterly results and positive industry‐wide sentiment, as follows:

1. Analyst upgrade and price‐target lift • On June 6, Ascendiant Capital Markets reiterated its “buy” rating and raised QUBT’s price target from $14 to $22—implying a 60% upside—which fueled a 15.8% one-day spike.

2. Q1 earnings showed a net gain of 37.5% to $0.11 per share, up from $0.08 last year, but it should be noted that much of this gain was a matter of accounting, not a material improvement in its business. The company attributed the change to "a $23.6 million noncash gain on the mark-to-market valuation of the Company's warrant liability as a result of our merger with QPhoton in June 2022."

3. Broader sector tailwind • At Nvidia’s GTC Paris conference (June 11), Jensen Huang declared quantum computing was nearing an “inflection point,” lifting sentiment across all quantum-tech names and extending QUBT’s rally.

4. Russell index inclusion • QUBT is set to join both the Russell 2000® and Russell 3000® indexes after the market opens June 30—an event that typically draws fresh passive inflows

About Quantum Computing Inc.

• Specifically, the company:
  • develops thin film lithium niobate chips for optical devices, such as electro-optical modulators, periodically poled devices for frequency conversion, and micro ring resonator cavities markets;
  • is developing an entropy quantum computer that allows users to avoid the complexity of software development kits at the circuit level, as well as enables developers to create and execute quantum-ready applications using application programming interfaces; and
  • offers a reservoir computer, an edge device that uses an integrated circuit that can be reprogrammed after manufacturing and optimized for recurrent neural network applications;
  • offers lidar which allows machines to see through dense fog and provide image fidelity at great distances in environments such as snow, ice, and water; 
  • offers the quantum photonic vibrometer, an instrument for remote vibration detection, sensing, and inspection; and
  • offers quantum networks and quantum authentication products.

Stock Price Forecast

As mentioned above, the one analyst that follows QUBT, Ascendiant Capital Markets, has forecast a 12-month stock price target of  $22.00, which is a 31.7% increase from its closing June 13th stock price of $16.70.

Analyst Ratings

Ascendiant rates QUBT as a "STRONG BUY" which suggests that Ascendiant believes this stock is likely to perform very well in the near future and significantly outperform the market..

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