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Why Quantum Computing Inc. (QUBT) Is Plunging In 2025?

We recently published a list of Why These 15 Cybersecurity Stocks Are Plunging In 2025. In this article, we are going to take a look at where Quantum Computing Inc. (NASDAQ:QUBT) stands against other cybersecurity stocks that are plunging in 2025.

Cybersecurity stocks ranked among the hottest names on the stock market for years as these companies have been riding a wave of cyber threats and have easily acquired clients. Moreover, AI made them even hotter. These companies delivered jaw-dropping growth as businesses scrambled to protect their data from extremely sophisticated attacks.

Even in this environment, many are still posting very impressive revenue figures. Their services remain in high demand because cybercrime shows no signs of slowing down. Yet despite this strength, their stock prices have taken a nosedive this year. Unfortunately, there’s a lot of pessimism surrounding AI and connected themes like cybersecurity.

Wall Street is pulling back on these names, and the shift has dragged down some stocks that were market darlings just a few months before. It’s a good idea to look into the cybersecurity stocks that have been sold off the most, as there are likely buying opportunities here.

Methodology

For this article, I screened the worst-performing cybersecurity stocks year-to-date.

I will also mention the number of hedge fund investors in these stocks. 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. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

A data analyst pouring over a chart, the intricacies of its lines being revealed.

Quantum Computing Inc. (NASDAQ:QUBT)

Number of Hedge Fund Holders In Q4 2024: 6

Quantum Computing Inc. (NASDAQ:QUBT) is a tech company that specializes in photonic and quantum optics.

The stock is down significantly so far in 2025 due to Quantum Computing Inc. (NASDAQ:QUBT) missing earnings on its Q4 report. Net loss at $0.47 per share far exceeded the prior year’s loss of $0.09 per share.

Revenue fell 17% year-over-year to $62,000 and also missed analyst expectations of $200,000. Operating expenses surged due to stock-based compensation and depreciation costs related to its TFLN chip foundry.

The company has then seen a class action lawsuit alleging that the company overstated its quantum computing capabilities, NASA partnerships, and progress on its thin-film lithium niobate (TFLN) foundry.

Earlier, Capybara Research accused QUBT of fabricating revenues through related-party transactions and overstating its NASA ties.

The consensus price target of $8.5 implies 6.12% upside.

QUBT stock is down 51.60% year-to-date.

Overall, QUBT ranks 2nd on our list of cybersecurity stocks that are plunging in 2025. While we acknowledge the 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 but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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

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When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

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Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

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In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

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