QCI’s photonic chips could be more cost-efficient than ion or electron chips.
But its emerging technology needs to clear a lot of technical hurdles.
QCI has a lot of growth potential, but it’s valued like a meme stock.
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Quantum Computing Inc. (NASDAQ: QUBT), also known as QCI, was once a thinly traded over-the-counter (OTC) stock. But on July 15, 2021, QCI became a publicly listed stock by joining the Nasdaq Capital Market. It opened at $6.60 per share on the first day, but sank to an all-time low of $0.42 on July 1, 2024.
Like many quantum computing stocks, QCI struggled to grow its sales, racked up steep losses, and failed to justify its sky-high valuations. But by Dec. 18, 2024, QCI’s stock recovered and set a fresh record high of $25.68. A few green shoots in the quantum computing market drove a stampede of bulls back toward QCI and its industry peers.
Image source: Getty Images.
That rally would have turned a $1,000 investment at its all-time low into $61,143. Today, the stock trades at about $15 — so that same investment would have shrunk to about $35,700. Does that steep pullback represent a buying opportunity, or should investors shun this wildly volatile stock?
Unlike traditional computers, which store zeros and ones separately in binary bits, quantum computers can store them simultaneously in qubits. That difference allows them to process larger quantities of data at faster rates than their binary counterparts.
However, quantum computers are also larger, more expensive, and prone to make more mistakes than traditional servers and mainframes. To rectify those shortcomings, companies like QCI are developing new ways to process quantum data.
QCI has a catchy name, but it doesn’t manufacture quantum systems like IonQ (NYSE: IONQ) or Rigetti Computing (NASDAQ: RGTI). Instead, QCI only develops photonic chips that use particles of light (photons) instead of the more widely used ions and electrons to store quantum information.
IonQ and Rigetti produce…
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