Quantinuum, backed by major investors such as Honeywell International (HON), is in discussions to raise a new round of funding that could value the quantum computing firm at about $10 billion, Bloomberg reported.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
The potential fundraising involves both current and prospective investors. Importantly, semiconductor giant Nvidia (NVDA) is among the companies that have been approached for a possible investment.
However, it is worth noting that the talks are ongoing, and there is no guarantee that a final agreement will be reached.
This capital raise comes after Quantinuum raised $300 million in its first equity round since its formation, at a pre-money valuation of $5 billion. Thus, the latest round nearly doubles Quantinuum’s valuation.
Quantinuum’s Path to a Trillion-Dollar Market
Quantinuum was formed in 2021 through the merger of Cambridge Quantum and Honeywell Quantum Solutions. Since then, the company has rapidly advanced its position in quantum computing, aiming to build a fully fault-tolerant quantum computer by 2030.
In 2024, it achieved a major milestone by showing 12 logical qubits in collaboration with Microsoft (MSFT), marking a big step toward building larger, more powerful quantum systems.
Further, its upcoming Helios system is expected to support enough logical qubits to outperform classical computers in fields like finance, chemistry, and computational biology. These steps are part of a bigger plan to make quantum computing useful in the real world and tap into a projected trillion-dollar market.
Is HON Stock a Good Buy?
Turning to Wall Street, HON stock has a Moderate Buy consensus rating based on five Buys and six Holds assigned in the last three months. At $249.78, the average Honeywell stock price target implies a 14.66% upside potential.
