Quantum computing is one of the most interesting investment trends right now. But the company named Quantum computing inc. (NASDAQ: QUBT) It is not the safest way to invest in the trend. In fact, I wouldn’t touch Quantum Computing stock with a 10-foot pole.
Don’t get it wrong: Quantum Computing, also known as QCi, has several things going for it. First and foremost is their approach to quantum computing. While many companies are designing systems that rely on cryogenic cooling, this company is designing computers that operate at room temperature. That may be the most practical long-term solution.
Additionally, QCi has the balance needed to make a splash in this space. Between cash and investments, the company has more than $1.5 billion at its disposal. This liquidity will help management execute its game plan for the next three years and beyond.
Investors should take a long-term view, at least three years, when purchasing a stock. But in this case, the path forward for QCi is fraught with risks that I would rather avoid in my portfolio.
The biggest risk for QCi investors today is execution risk. For the third quarter of 2025, the company generated revenue of $384,000 and its total revenue for the trailing 12 months was less than $1 million. In short, it is a startup in the research phase that hopes to scale.
QCi is looking to make its own quantum computing hardware. Its current facilities are solely for testing processes and delivering prototypes to customers. Management hopes to iron out the bugs over the next three years before ramping up production to a commercial level.
Scaling is not easy, which is why I say there is an execution risk here. But the schedule also amplifies the competitive risk for QCi. Many players in the quantum computing space are already scaling up production, including some with extensive foundry experience such as Intel.
Waiting three years to significantly scale the business is the right choice: you can’t move faster than your technology or manufacturing processes. But waiting three years could leave QCi behind, given the rapid advances in the sector.
QCi has execution risk and competition risk. But another risk for investors today is the dilution of shareholder value. As mentioned, the company has an excellent balance sheet. But much of its cash position was raised by issuing new shares. The chart below shows how quickly the outstanding share count is increasing.
