A Bull Case for Quantum Computing Stock Is Still Alive

Key Points

• As quantum computing begins emerging as the next phase of the artificial intelligence race, Quantum Computing stock is a rally in the making.
• Institutional buyers agree, as they recently boosted their positions in the company.
• Wall Street still sees double-digit upside ahead for the stock due to its fundamental positioning.

Most investors are still chasing the artificial intelligence race within the technology sector globally; however, this growth effect has spilled over into another new area that isn’t being discussed as often in the financial media and investment circles. That new area is potentially a new revolutionary segment of computing and its future.

This new growth route is called quantum computing, a significantly powerful improvement to the way computers solve tasks and identify anomalies or patterns in data. This is important because quantum computers can solve and “think” through several problems and systems simultaneously, reducing the time needed to arrive at solutions and even exposing users to solutions that may have been missed with a linear input-output process.

That is exactly why paying attention to a company like Quantum Computing Inc. NASDAQ: QUBT can be a profitable habit to start building now, for portfolio growth purposes. Other participants in the stock market have already been acting on this opportunity, signaling to retail investors where their attention should be directed in the coming months as the need for more efficient intelligence models begins to trickle into the rest of the industry.

The Biggest Tailwind for Quantum Computing

As the United States is taking care of its agenda when it comes to the onshoring of data centers and chipmaking facilities, the computing power needed to “do more with less” will likely call upon companies like Quantum Computing to help solve that imbalance, giving the market a sound fundamental story to follow for this stock today.

However, this is by no means going to be a smooth ride moving forward, especially as the attention is not yet swinging in the company’s direction. For this reason, the stock now trades at only 58% of its 52-week high, which may deter some investors due to the bearish price action currently in place.

As most seasoned operators will know, though, this is the sort of setup (the contrarian one) that typically brings about the best return profiles as long as the thesis remains strong enough into the coming months. On a risk-to-reward basis, this low price doesn’t really have much else to price in when it comes to further negatives.

That asymmetric opportunity setup may have ignited new interest from savvy institutional buyers. As of early August 2025, Geode Capital Management had enough reasons—whether financials or industry fundamentals—to justify doubling their positions in Quantum Computing stock.

This addition now nets their entire position at a high of $50.4 million, or 1.6% ownership in the entire company, acting as confirmation for future bullishness going forward for this business, and also a signal for investors to consider when making a potential decision to add this name to a portfolio.

Other Opinions on Quantum Computing Stock

On the other side of the bearish equation, investors can also see a few evidence points suggesting Quantum Computing stock should be trading higher. Over the past month alone, 10% of the company’s short interest declined as an initial sign of bearish capitulation.

This low price, relative to 52-week highs, leaves little room for further downside, especially considering how the market might be headed. Furthermore, up to 21.1% of the company’s share float is now held in short positions, which is high enough to trigger a potential short squeeze upon any sudden rally.

The broader market is also joining in this opinion in one of the rawest ways that the market usually does. Because Quantum Computing stock trades at a price-to-sales (P/S) ratio of over 6,000x, the market’s pricing mechanism suggests that future sales could be high enough to justify such a massive premium.

Of course, knowing whether the market will be right is impossible, though it usually isn’t wrong. In a more speculative scenario, this premium could be due to expectations of a buyout or a massive contract with an industry giant or even a government entity.

Ultimately, despite this premium being significantly above reality, investors can be confident that Wall Street analysts still consider the company a Moderate Buy, with a valuation of $18.5 per share, 17.2% higher than its current price.

This matters because analysts typically avoid boosting or being overly optimistic about companies that have experienced the bearish price action that Quantum Computing has, suggesting that there must be something significant ahead for this business.