In this article, we will discuss the 5 Most Overvalued Quantum Computing Stocks According to Short Sellers. For deeper discussion and analysis, read 10 Most Overvalued Quantum Computing Stocks According to Short Sellers.
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 (NASDAQ:LRCX) 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 (NASDAQ:LRCX) 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. (NASDAQ:AMAT) 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. (NASDAQ:AMAT) 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. (NYSE:NET) 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. (NYSE:NET) 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 (NYSE:NOK) 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 (NYSE:NOK) 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.
While we acknowledge the potential of NOK as an overvalued quantum computing stock, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than NOK and that has 100x upside potential, check out our report about this cheapest AI stock.
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