Quantum Computing (NASDAQ:QUBT) is garnering significant attention as the quantum revolution takes shape, with this emerging sector poised for exponential growth in the coming decades.
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A report by BCG estimates that by 2040, the global quantum computing industry could generate between $450 billion and $850 billion in economic value, supporting a $90 billion to $170 billion market for hardware and software providers.
Capitalizing on this potential, Quantum Computing is dedicated to delivering accessible and cost-effective quantum solutions – a strategy that has captured the attention of top investor KM Capital, who sits in the top 4% of TipRanks’ stock pros.
What sets the company apart is its integrated approach, integrating hardware and software into a comprehensive solution. “This combination,” says KM “is important for solving the tough challenges of quantum computing and helping more businesses and industries use this technology.
Of course, the problem with companies operating in the space is that none are generating any meaningful revenue, which is also the case with QUBT. However, KM thinks its potential makes it a candidate to “become a mega-cap over the long term.”
While the revenue haul is still tiny, QUBT has been moving nearer commercialization. Last fall, the company launched a pilot program to secure sales orders from early adopters for its TFLN foundry service. “This marks an important step forward, showing the company’s active efforts to enter the market and build a connected ecosystem,” says the 5-star investor.
There are other promising signs re commercialization. For instance, in 2024, the company sold a quantum LiDAR prototype to Johns Hopkins University for $200,000, showcasing the potential commercial applications of its quantum tech.
Additionally, QUBT extended its Cooperative Research and Development Agreement (CRADA) with Los Alamos National Laboratory to explore the capabilities of its Dirac-3 quantum optimization machine. This collaboration not only fosters further research and development but also paves the way for potential advancements in quantum computing applications.
Naturally, there are risks to consider. With the industry being at such an early stage, it could all go pear-shaped and there is no guarantee that QUBT’s approach will become the dominant or most commercially viable solution. Additionally, the company’s technology has yet to demonstrate scalability, and the timeline for widespread adoption of quantum solutions could be longer than expected.
That said, KM believes these are risks worth taking. “I think that QUBT is a ‘Strong buy’ because it looks like a must-have investment to get exposure to disruptive quantum technologies,” the investor summed up. “Investing in QUBT in 2025 looks like investing in Microsoft or Apple in the 1980s, in my opinion. There is vast uncertainty, but also vast potential, which means that QUBT definitely deserves its place in my portfolio.” (To watch KM’s track record, click here)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.
