Arqit Quantum Inc. (ARQQ): A Bull Case Theory

We came across a bullish thesis on Arqit Quantum Inc. (ARQQ) on Rock & Turner’s Substack. In this article, we will summarize the bulls’ thesis on ARQQ. Arqit Quantum Inc. (ARQQ)’s share was trading at $26.40 as of 27^th May. ARQQ’s trailing and forward P/E were 2.45 and 18.73 respectively according to Yahoo Finance.

Arqit Quantum offers a high-risk, high-reward opportunity for investors seeking pure-play exposure to the rapidly emerging field of quantum-resistant cybersecurity. The company, which came public via SPAC, has had a volatile trading history, typical of early-stage tech firms, but its underlying technology is gaining credibility. Notably, Arqit has secured partnerships with major industry players like Intel and Equus Compute Solutions, signaling that its encryption solutions are attracting serious interest.

Arqit’s core product—quantum-resistant encryption keys—provides military-grade protection with minimal network latency, addressing an urgent need in the evolving cybersecurity landscape. With the cybersecurity market exceeding $200 billion, Arqit is well-positioned to capture a meaningful share if adoption gains momentum. The company’s alignment with the NSA’s Commercial Solutions for Classified (CSfC) program opens the door to government contracts, which are typically long-term and lucrative, potentially offering recurring revenue at high software margins.

While giants like Intel offer some indirect exposure to this space, their diversified business models mean any success in quantum encryption would have minimal impact on their overall valuation. Arqit, however, is a focused bet—success here would be transformational. Although it remains an early-stage company, the validation from strategic partners and its alignment with future security standards make it a compelling speculative play. The stock may be volatile, but if Arqit’s technology is adopted at scale, it could see a dramatic re-rating. For investors willing to stomach near-term uncertainty in exchange for long-term optionality in a critical tech frontier, Arqit Quantum represents a bold and potentially explosive opportunity.

For a deeper look into another cybersecurity stock, be sure to check out our article on PaloAlto Networks, Inc. (PANW) wherein we summarized a bearish thesis by Magnus Ofstad on Substack.

Arqit Quantum Inc. (ARQQ) is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 1 hedge fund portfolios held ARQQ at the end of the first quarter which was 8 in the previous quarter. While we acknowledge the risk and potential of ARQQ as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than ARQQ but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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Disclosure: None. This article was originally published at Insider Monkey.