Lake Street Remains a Buy on Quantum Computing (QUBT)

Quantum Computing Inc. (NASDAQ:QUBT) is one of the Best Quantum Computing Stocks to buy and Hold Forever. Although the stock has declined around 12.6% over the past month, the Street sees more than 107% upside from the current level. The bullish sentiment from analysts is based on the expectation of accelerating commercialization of quantum and photonic technology.

​Recently, on July 6, Lake Street reiterated a Buy rating on Quantum Computing Inc. (NASDAQ:QUBT) with a price target of $16. The firm noted that the bullish sentiment comes from the company’s recent acquisition of NHanced Semiconductors. The deal was completed on June 23 and is valued at $73.1 million in cash and stock, plus up to $72.0 million in additional earnout payments.

​Lake Street sees this as a follow-on to the Luminar Semiconductor acquisition that closed in February. The firm noted that together, the deals deepen Quantum Computing’s photonics manufacturing and advanced-packaging capabilities. Moreover, management is framing the acquisition as the launch of Fab 2, arriving years ahead of the company’s roadmap.

​The firm added that this deal can speed up the company’s shift from a research- and prototyping-focused company toward scalable commercial production. Moreover, it also adds semiconductor and nanophotonics fabrication capacity, advanced-packaging expertise, and specialized engineering talent.

Quantum Computing Inc. (NASDAQ:QUBT) makes photonics-based equipment for both commercial and government clients. It specializes in thin-film lithium niobate (TFLN) photonic chips that convert electrical signals into optical signals. It is headquartered in Hoboken, New Jersey.

While we acknowledge the risk and potential of QUBT 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 time frame. If you are looking for an AI stock that is more promising than QUBT and that has 10,000% upside potential, check out our report about this cheapest AI stock.

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