In this article, we will discuss the 10 Most Overvalued Quantum Computing Stocks According to Short Sellers.
The next tech winner may already be trading in plain sight, but investors chasing the quantum computing boom face a critical question: are they buying the future of computing or the next speculative bubble?
Quantum computing has quickly become one of Wall Street’s most exciting, yet controversial, investment themes. While the technology promises to revolutionize artificial intelligence, drug discovery, cybersecurity, financial modeling, and advanced manufacturing, many publicly traded quantum companies have surged far ahead of their current revenues, sparking debate among billionaire investors and hedge fund managers. Some see a once-in-a-generation opportunity; others see valuations that have become detached from reality.
Legendary hedge fund manager Stanley Druckenmiller has repeatedly argued that transformational technologies can create enormous wealth for investors willing to identify long-term winners early. Similarly, Ray Dalio has emphasized that technological revolutions often produce extraordinary opportunities, but also speculative excess as investors rush into emerging industries.
The long-term potential remains difficult to ignore. According to McKinsey & Company, quantum computing could create up to $1.3 trillion in economic value by 2035 across industries ranging from pharmaceuticals to logistics. Meanwhile, the Boston Consulting Group estimates that quantum technologies could unlock between $450 billion and $850 billion in economic benefits over the next 15 to 30 years. Industry research also projects global quantum-computing spending to grow at double-digit annual rates throughout the coming decade.
With this context in mind, here are some overvalued quantum computing stocks according to short sellers.
Our Methodology
We used stock screeners to identify stocks related to quantum computing that have a forward P/E of over 25 and a short percentage of shares outstanding of less than 4%. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in descending order of their short percentage of shares outstanding as of May 15, 2026.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).
10 Most Overvalued Quantum Computing Stocks According to Short Sellers
10. Allient Inc. (NASDAQ:ALNT)
Short Percentage of Shares Outstanding: 4.34%
Forward P/E: 30.95
On May 26, JPMorgan upgraded Allient Inc. (NASDAQ:ALNT) to Overweight from Neutral and raised its price target to $80 from $65. The firm noted that the company has successfully transformed itself from a fragmented motion component supplier into a vertically integrated engineering platform that combines motion, control, and power technologies. JPMorgan believes Allient offers an attractive combination of mid-single-digit long-term revenue growth, ongoing margin expansion opportunities, and strong positioning in several high-growth secular markets, including defense, industrial automation, and humanoid robotics. The analyst highlighted the company’s evolving business model and diversified technology portfolio as key drivers of future value creation.
On May 11, Allient Inc. announced that its Board of Directors elected Alex Collichio as Vice President while he continues to serve as Chief Administrative Officer. Collichio joined the company in July 2022 as Corporate Human Resources Director, later assumed responsibility for the Legal Department in March 2023, and was promoted to Chief Administrative Officer in March 2024. The appointment reflects Allient’s continued focus on strengthening its leadership team and supporting the execution of its long-term strategic initiatives as the company expands its capabilities across multiple technology-driven end markets.
Formerly known as Allied Motion Technologies, Allient Inc. was founded in 1939 and is headquartered in Amherst, New York. It engineers precision motion, control, and power systems for various technology sectors, including specialized nano-positioning components utilized in the semiconductor industry and quantum computing research to achieve microscopic, high-accuracy equipment alignment.
9. Marvell Technology, Inc. (NASDAQ:MRVL)
Short Percentage of Shares Outstanding: 4.03%
Forward P/E: 50.44
On May 28, B. Riley raised its price target on Marvell Technology, Inc. (NASDAQ:MRVL) to $240 from $205 while maintaining a Buy rating on the shares. The firm highlighted that the company delivered results that exceeded expectations, accompanied by stronger-than-anticipated guidance. According to the analyst, performance was driven by strength in interconnected products, accelerating data center bookings, and upward revisions to revenue forecasts for fiscal 2027 and 2028. Management also pointed to continued momentum among hyperscale customers, expanding custom compute opportunities, and the potential for earnings per share to exceed $6 in fiscal 2028 and $7.50 in fiscal 2029, reflecting growing confidence in the company’s long-term growth trajectory.
On the same day, Oppenheimer analyst Rick Schafer raised the firm’s price target on Marvell Technology, Inc. to $250 from $200 and reiterated an Outperform rating on the stock. The firm noted that Marvell reported upside results for the first quarter and provided a stronger outlook for the second quarter, primarily driven by demand for AI application-specific integrated circuits and networking solutions. Oppenheimer subsequently increased its financial estimates and indicated that it continues to view the company’s revenue targets as conservative relative to the opportunities emerging from the rapid expansion of AI infrastructure spending.
Incorporated in 1995 and headquartered in Santa Clara, California, Marvell Technology, Inc. is a fabless semiconductor company that designs custom data infrastructure chips, specializing in artificial intelligence (AI), cloud computing, networking, and storage solutions. The company is expanding through key strategic partnerships and the development of optical interconnects designed to link emerging quantum and high-performance computer architectures.
8. Advanced Micro Devices, Inc. (NASDAQ:AMD)
Short Percentage of Shares Outstanding: 2.70%
Forward P/E: 40.39
On June 16, Advanced Micro Devices, Inc. (NASDAQ:AMD) and Rackspace Technology announced a definitive agreement for the phased deployment of an initial 30-megawatt footprint dedicated to AMD-powered computing infrastructure across Rackspace’s global data centers between late 2026 and 2028. The deployment will incorporate AMD Instinct GPUs and AMD EPYC CPUs within Rackspace’s Enterprise AI Cloud platform, supporting regulated enterprise workloads such as healthcare, large-scale inference, and advanced artificial intelligence applications. At full deployment, the infrastructure is expected to provide significant AI computing capacity across Rackspace’s global network.
A day earlier, Advanced Micro Devices, Inc. announced its acquisition of MEXT, a company specializing in AI-driven memory optimization technology. MEXT has developed predictive memory software designed to make flash storage behave more like DRAM, helping customers increase usable memory capacity while maintaining performance and efficiency. AMD stated that the acquisition will help address one of the most significant challenges facing modern data centers—memory constraints driven by the growing complexity of artificial intelligence, analytics, virtualization, and high-performance computing workloads. The company believes the technology can improve infrastructure efficiency, lower costs, and enable customers to scale AI and enterprise applications more effectively.
Founded in 1969 and headquartered in Santa Clara, California, Advanced Micro Devices, Inc. is a key supplier of computing infrastructure powering artificial intelligence, cloud computing, high-performance computing, and next-generation data centers. The company’s advanced processor architectures and accelerator technologies are also helping support the development of increasingly powerful quantum computing, AI, and scientific computing systems.
7. Intel Corporation (NASDAQ:INTC)
Short Percentage of Shares Outstanding: 2.69%
Forward P/E: 85.38
On June 8, reports indicated that Intel Corporation (NASDAQ:INTC) is emerging as a potential beneficiary of tightening capacity at rival semiconductor foundries, reinforcing the company’s growing position in advanced chip manufacturing. According to sources cited by The Information, several leading artificial intelligence chip developers, including Google and Nvidia, have been evaluating Intel as an alternative production partner for next-generation processors as demand for cutting-edge semiconductor capacity continues to exceed industry supply. The development underscores increasing confidence in Intel’s foundry capabilities and highlights the company’s opportunity to capture additional business from the rapidly expanding AI ecosystem, strengthening its long-term growth prospects in both semiconductor manufacturing and advanced computing infrastructure.
On June 5, Intel Corporation & Hitachi announced a strategic collaboration focused on advancing physical AI, next-generation computing, and digital infrastructure solutions across industries, including manufacturing, energy, and mobility. The partnership aims to combine Hitachi’s expertise in information technology, operational technology, and industrial systems with Intel’s advanced computing platforms and semiconductor capabilities. The companies plan to collaborate across several key areas, including foundry tools, quantum computing, energy optimization, custom silicon development, edge AI applications, and factory automation, with the objective of creating innovative solutions that improve operational efficiency and support the development of more intelligent and resilient infrastructure systems.
Founded in 1968 and headquartered in Santa Clara, California, Intel Corporation designs, develops, and manufactures semiconductor microprocessors and computing hardware. Intel utilizes its advanced silicon manufacturing scale to build spin qubit chips and cryogenic control processors, aiming to commercialize viable quantum systems.
6. KLA Corporation (NASDAQ:KLAC)
Short Percentage of Shares Outstanding: 2.68%
Forward P/E: 50.84
On June 9, UBS raised its price target on KLA Corporation (NASDAQ:KLAC) to $2,180 from $1,770 while maintaining a Neutral rating on the shares. The substantial increase in the target price reflects improving confidence in the semiconductor equipment sector and KLA’s ability to capitalize on growing industry investment. KLA remains strategically positioned to benefit from rising demand for advanced semiconductor manufacturing technologies driven by artificial intelligence, high-performance computing, and next-generation electronics.
On May 7, KLA Corporation announced that its board of directors approved a ten-for-one forward stock split of the company’s outstanding common shares, a move intended to enhance share accessibility while reinforcing its long-term innovation and growth strategy. Shareholders of record as of June 4, 2026, will receive nine additional shares for each share owned, with split-adjusted trading scheduled to begin on June 12, 2026. While the stock split will not alter the company’s market capitalization or shareholder ownership percentages, it reflects management’s confidence in the business and may broaden investor participation by making shares more accessible to a wider range of market participants.
Founded in 1975 and headquartered in Milpitas, California, KLA Corporation designs and manufactures process control and yield management systems essential for the semiconductor and electronics industries. The company explores quantum computing through strategic partnerships and research labs, such as their Artificial Intelligence-Advanced Computing Lab, which focuses on exploring next-generation compute technologies.
5. Lam Research Corporation (NASDAQ:LRCX)
Short Percentage of Shares Outstanding: 2.56%
Forward P/E: 48.39
On June 9, UBS raised its price target on Lam Research Corporation (NASDAQ:LRCX) to $375 from $310 while maintaining a Buy rating on the shares. The upward revision reflects the firm’s increasing confidence in the company’s growth outlook and its ability to benefit from continued investment in semiconductor manufacturing capacity. The higher target also underscores optimism regarding demand for advanced wafer fabrication equipment as chipmakers expand production to support emerging technologies such as artificial intelligence, high-performance computing, and advanced memory solutions.
On June 1, Wells Fargo analyst Aaron Rakers raised the firm’s price target on Lam Research Corporation to $575 from $500 and maintained an Overweight rating on the shares. The firm highlighted a strong demand environment across the semiconductor industry following discussions at its 4th Annual Wells Fargo Silicon Valley Bus Tour, citing accelerating AI data center deployments, expanding AI inferencing and agentic AI workloads, and rising memory requirements as key growth drivers. Wells Fargo noted that persistent memory supply constraints are likely to extend through 2027, creating a favorable backdrop for semiconductor capital equipment spending. As a leading provider of wafer fabrication equipment essential for advanced memory and logic chip production, Lam Research is well-positioned to benefit from sustained investment in AI infrastructure and semiconductor capacity expansion, while its scale and technological leadership remain important competitive advantages.
Founded in 1980 and headquartered in Fremont, California, Lam Research Corporation provides critical wafer fabrication equipment and services used to manufacture semiconductor microchips. As chip features shrink to the atomic scale, the company’s advanced etch and deposition tools are directly applied to quantum computing R&D to help fabricate the precise nanoscale structures required for qubits.
4. Applied Materials, Inc. (NASDAQ:AMAT)
Short Percentage of Shares Outstanding: 2.51%
Forward P/E: 37.54
On June 17, Citi analyst Atif Malik raised the firm’s price target on Applied Materials, Inc. (NASDAQ:AMAT) to $710 from $550 and maintained a Buy rating. Citi increased its valuation targets across the semiconductor equipment sector to reflect updated wafer fabrication equipment forecasts and a roll forward to 2028 earnings estimates. The firm remains particularly bullish on NAND equipment demand, arguing that a widening gap between memory demand and available DRAM supply should accelerate investment in complementary semiconductor technologies and manufacturing capacity.
Earlier, on June 16, EssilorLuxottica and Applied Materials, Inc. announced a long-term joint development agreement aimed at accelerating the commercialization of next-generation intelligent optical systems for augmented reality and AI-powered smart glasses. The partnership combines EssilorLuxottica’s expertise in eyewear and optical design with Applied Materials’ capabilities in materials engineering and waveguide technology. The companies plan to collaborate on advanced waveguides, adaptive lens systems, and new materials innovations designed to enable lightweight, high-performance smart eyewear for future computing platforms.
Founded in 1967 and headquartered in Santa Clara, California, Applied Materials, Inc. leverages its expertise in materials engineering to help drive innovation across emerging technologies, including artificial intelligence, augmented reality, advanced semiconductors, and quantum computing.
3. Cloudflare, Inc. (NYSE:NET)
Short Percentage of Shares Outstanding: 2.50%
Forward P/E: 141.54
On June 10, UBS raised its price target on Cloudflare, Inc. (NYSE:NET) to $250 from $220 while maintaining a Neutral rating following the company’s Investor Day presentation.
The same day, BTIG increased its price target to $269 from $243 and reiterated a Buy rating. The firm highlighted management’s bullish tone during Investor Day, where Cloudflare, Inc. raised its long-term financial outlook and outlined a path toward achieving a “Rule of 50” profile by 2027. While BTIG acknowledged the planned retirement of President of Revenue Mark Anderson, it believes enterprise demand trends remain strong, and sales productivity continues to improve.
Founded in 2009 and headquartered in San Francisco, California, Cloudflare, Inc. operates one of the world’s largest internet infrastructure and cybersecurity platforms. The company provides content delivery, network security, Zero Trust architecture, and cloud networking services that help organizations improve performance while protecting digital assets. Cloudflare has also emerged as a leader in quantum-safe cryptography, offering post-quantum encryption capabilities designed to protect internet traffic against future quantum computing threats.
2. Corning Incorporated (NYSE:GLW)
Short Percentage of Shares Outstanding: 2.49%
Forward P/E: 46.52
On June 5, UBS analyst Joshua Spector raised the firm’s price target on Corning (GLW) to $228 from $223 and maintained a Buy rating. The analyst noted that, following updates to the firm’s financial model, UBS now expects stronger growth from the company through 2028.
Previously, on May 12, Mizuho raised its price target on Corning to $220 from $190 while reiterating an Outperform rating. The firm cited improving business trends and confidence in the company’s growth outlook across its end markets.
Corning Incorporated is a leading materials science company specializing in advanced glass, ceramics, and optical technologies. The company develops products used in telecommunications networks, consumer electronics, automotive applications, life sciences, and semiconductor manufacturing. Among its innovations are specialized low-loss optical fibers and precision optical interconnect technologies that can support next-generation computing architectures, including quantum computing systems that require ultra-fast, high-fidelity data transmission between quantum processors. Founded in 1851, Corning is headquartered in Corning, New York.
1. Nokia Oyj (NYSE:NOK)
Short Percentage of Shares Outstanding: 1.19%
Forward P/E: 30.07
On June 9, Nokia Oyj (NYSE:NOK) and Indosat Ooredoo Hutchison announced a partnership to modernize Indosat’s nationwide mobile network in Indonesia through the deployment of advanced 5G radio access network technologies. Under the agreement, Nokia will support the rollout of low- and mid-band 5G infrastructure designed to deliver enhanced network performance and help create AI-ready connectivity platforms. The partnership further strengthens Nokia’s presence in a growing telecommunications market while highlighting increasing global demand for next-generation network infrastructure capable of supporting artificial intelligence applications and rising data consumption.
On June 8, BofA raised its price target on Nokia Oyj to EUR 14.40 from EUR 11 and maintained a Buy rating on the shares. Following discussions with Nokia’s investor relations leadership at the firm’s Global Technology Conference, BofA expressed confidence in the company’s positioning in data center interconnect solutions and optical transport technologies. The firm also expects Nokia to benefit from a ramp-up in data center switching revenues, supported by growing demand for high-capacity networking infrastructure required by cloud computing and artificial intelligence workloads.
Founded in 1865 and headquartered in Espoo, Finland, Nokia Oyj is a global telecommunications and information technology company that builds the critical infrastructure behind 5G, fiber, and cloud networks. It is actively pioneering quantum-safe security, networking, and sensing to protect future communications from quantum computer threats.
READ NEXT: 10 Best Insurance Stocks to Buy Following Q1 Earnings and 7 Best “Land Owner” Stocks to Buy for Hard Asset Value.
