Quantum Computing (QUBT), or QCi, jumped more than 18% on Tuesday after a strong Q1 report, with support from its recent acquisitions. The rally grew after Lake Street analyst Maxwell Michaelis reiterated a Buy rating and a $16 price target, citing QUBT’s expanding quantum portfolio.
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Explore QUBX for 2X leverage on QUBTMichaelis said the Luminar Semiconductor deal is coming together smoothly and has already helped lift Q1 revenue. He also said that the purchase of NuCrypt was not included in earlier estimates, but it gives the company a new growth driver in secure quantum networking.
With both integrations underway, the analyst expects Luminar’s LSI business to remain QCi’s primary revenue driver in 2026, while NuCrypt expands its reach into quantum communications and network security.
Apart from acquisitions, Michaelis noted that QCi’s Fab 1 site in Tempe is increasing small-batch production and has started generating early foundry revenue. Importantly, the company is in talks to build a second, larger facility that could cost about $300 million.
Michaelis said quantum computing adoption is still in an early stage, but he thinks QCi is in a strong position due to its solid balance sheet and a growing lineup of products. He said these advantages give the company plenty of room to grow.
Is QUBT a Strong Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on QUBT stock based on four Buys and two Holds assigned in the past three months. Further, the average QCi price target of $17.83 per share implies 50.56% upside potential.
