Should You Buy, Hold or Sell QUBT Stock Amid Semiconductor Boom?

The Semiconductor Industry Association’s August 2026 report showed that global semiconductor sales reached $403.3 billion in the second quarter of 2026, up 35.1% from the first-quarter level. Robust demand across the Americas, Asia Pacific and China continues to support industry growth, underscoring the increasing importance of semiconductors in driving technological innovation and economic competitiveness.

Following record industry growth in 2025, momentum has strengthened further in 2026. The World Semiconductor Trade Statistics organization expects global semiconductor sales to reach $1.5 trillion this year, supported by rapid AI adoption and continued growth in advanced computing, 5G and emerging 6G networks, healthcare devices, defense systems and other semiconductor-based technologies.

Given the above positives, Quantum Computing QUBT or “QCi” has now reported second-quarter results, giving investors more evidence on revenue growth, customer adoption, liquidity and technology execution. 

Price Performance of QUBT 

Over the past year, QUBT stock has plunged 43.3% compared with the Zacks Computer and Technology sector’s 12.7% decline. During this period, shares of QCi's key peers, Regitti RGTI and D-Wave Quantum QBTS, have gained 13.2% and 27.8%, respectively.

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Tailwinds for QUBT Stock’s Growth

Customer Adoption: QCi expanded customer adoption across its quantum optimization and photonic computing platforms. The company sold, delivered and installed a Dirac-3 quantum optimization system at a leading global consulting firm for enterprise applications, including portfolio optimization. 

NeuraWave also reached deployment readiness, while QCi signed a framework agreement with Planck Dynamics for potential deployment of multiple dozens of systems, representing over $10 million in potential program value, subject to customer milestones and other conditions. QCi also received an order from a leading university for its quantum-secure communications system, supporting further research and signaling continued customer traction.

Long term Perspective: QCi completed the acquisition of NHanced Semiconductors, Inc., a U.S.-based advanced packaging foundry, for a combination of cash and QCi stock valued at $73.1 million, and up to an additional $72.0 million if certain performance targets are achieved. The acquisition of NHanced Semiconductors strengthens its long-term growth prospects by accelerating the launch of Fab 2 and expanding its advanced packaging, semiconductor manufacturing and photonic integration capabilities. 

Strong Solvency: At the end of the second quarter of 2026, the company had approximately $1.64 billion in total assets, and $1.3 billion in cash, cash equivalents, and investments. Total liabilities increased to approximately $47.2 million from $23.4 million at the end of the first quarter. The liabilities were much lower than the cash levels. Stockholders’ equity remained approximately $1.6 billion, underscoring the company’s strong capitalization following its recent financing and investment activities. 

QUBT’s Price Target

Based on short-term price targets offered by six analysts, the average price target for QCi is $18.33. The average price target represents an increase of 105.49% from the last closing price. 

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QUBT Continues to Incur Loss

QCi generated $5.6 million of second-quarter revenues, while operating expenses totaled $21.8 million, more than 3.5X revenues. Operating expenses also increased 114% year over year. This large gap between revenues and spending is the fundamental reason behind the company remaining unprofitable. 

The company attributed the increase in operating expenses partly to higher personnel/payroll costs associated with R&D. In the second quarter alone, acquisition-related expenses amounted to approximately $7.3 million, accounting for a meaningful portion of operating expenses. Profitability depends heavily on whether revenues can scale sufficiently to absorb this expanded cost structure.

QUBT’s Valuation

Based on the forward 12-month Price/Sales (P/S), QUBT trades at 40.93X, below its median of 597.55X but above the sector average of 4.08X. 

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Conclusion

QCi’s improving customer traction, expanding manufacturing capabilities and strong liquidity position support its long-term growth potential. However, the company remains in an early commercialization phase with operating costs significantly exceeding revenues. 

Based on the stock price performance, discounted valuation and high short-term price-target upside, we advise investors who already hold this Zacks Rank #3 (Hold) stock to maintain their positions, while prospective investors may consider waiting for a more favorable entry point. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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