Quantum Computing Inc. (NASDAQ:QUBT) just crossed into the green for the year after a 25.4% single-day surge. It is by far the best-performing quantum computing stock today and the poster child for the quantum-computing melt-up that followed Nvidia CEO Jensen Huang’s unexpectedly bullish comments at the GTC Paris conference.
That said, the stock is still below its all-time high, so many believe there’s more upside potential left. Quantum computing sentiment looks even better than it was last year, since we have seen bona fide breakthroughs. Not only that, these companies have managed to use these surges to offer shares and build up a cash stockpile that gives them multi-year runways.
Is QUBT now poised for $30, or will it be rejected again and fall to $10? Let’s take a look.
Huang’s declaration that “quantum computing is reaching an inflection point” reversed his own January skepticism and triggered a rush into every pure-play quantum ticker. Plus, excitement was amplified by IonQ’s $1.1 billion purchase of Oxford Ionics. These twin headlines convinced momentum traders that near-term catalysts could arrive sooner than once thought.
There’s tremendous hype in this space, and if quantum computing companies keep posting about breakthroughs and deals, QUBT stock could rally beyond its all-time highs.
The highest price target here is at $22, and that’s not too far away from its highs. A move above 420 would likely open the path for $25 or even higher. Stocks trading on hype and mania usually overshoot price targets by big margins.
That said, this is a stock that trades less on fundamentals and more on sentiment than many other quantum computing startups. If the broader market gets bearish due to a negative catalyst, QUBT stock could easily plunge below $10, or even $5, like it did in March. At the moment, $30 looks more likely than $10. For QUBT stock to actually hold at such high levels, Jensen Huang’s comments aren’t enough. It needs a positive catalyst that alters its fundamentals.
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