Here's Why I Wouldn't Touch Quantum Computing Stock With a 10-Foot Pole

By Lyle Daly – Jan 25, 2026 at 3:33AM ESTKey PointsEven compared to its closest competitors, Quantum Computing stock is extremely expensive.The company has quadrupled its share count over the last three years to raise money.It's generating little revenue and competes in a crowded space.CEO says this is worth 18 Nvidias. Will this make the world's first trillionaire? ›NASDAQ: QUBTQuantum ComputingMarket Cap$2.6BToday's Changeangle-down(-4.50%) $0.54Current Price$11.46Price as of January 23, 2026 at 4:00 PM ETThis stock is too rich and too risky for my blood.Tech companies are investing heavily in quantum computing, which uses quantum mechanics to develop faster computing systems. One pure-play quantum computing company is the aptly named Quantum Computing (QUBT 4.50%), or QCi for short. It develops photonics technology that manipulates particles of light and operates at room temperature, unlike the superconducting technology favored by many quantum computing companies. Quantum Computing stock has soared over the last three years, rising 591% (as of Jan. 22). Despite those amazing returns, I won't touch it because of a few serious risks. Image source: Getty Images. It trades at a staggering premium QCi hasn't generated much revenue -- just $546,000 over the trailing 12 months (TTM). With a market cap of $2.7 billion, it currently trades at over 3,000 times trailing sales. For comparison, Nvidia has generally traded between 20 to 40 times sales in recent years. Even compared to the other pure-play quantum computing stocks, QCi is an outlier. Here's how its price-to-sales (P/S) ratio compares to D-Wave Quantum, IonQ, and Rigetti Computing. QUBT PS Ratio data by YCharts In fairness, QCi's photonics technology can operate at room temperature and requires low power compared to other quantum systems, which are important advantages. However, it's still unclear which quantum computing method will prove to be the most effective, so QCi's cost is hard to justify. A history of share dilution Another reason QCi trades at a premium is its robust balance sheet, with over $1.5 billion in cash and investments. Given the high research and development (R&D) costs of quantum computing, cash reserves are crucial to avoid running out of money. The problem is that much of QCi's cash reserves have come from issuing new shares. Over the last three years, the company's outstanding shares have quadrupled, from about 60 million to 224 million. If you invested in QCi three years ago, your current stake would be about one-fourth of the size it was when you started. ExpandNASDAQ: QUBTQuantum ComputingToday's Change(-4.50%) $-0.54Current Price$11.46Key Data PointsMarket Cap$2.6BDay's Range$11.15 - $12.1252wk Range$4.37 - $25.84Volume18MAvg Vol24MGross Margin-77783.88% Share dilution can work out well for everyone if it generates cash that the company uses to grow. But as mentioned earlier, QCi's earnings are still very small. The fact that it has repeatedly issued new shares to raise money is a concern for investors. Fierce competition QCi could reward shareholders if its photonics systems become the leading quantum computing technology. You could say the same for D-Wave, IonQ, and Rigetti -- they're all trying to solve the same problem in a different way. And those are just the pure-play options. Several tech giants are investing in quantum computing, including Alphabet, International Business Machines, and Nvidia. I'm not convinced QCi will be the winner in this space, especially considering its revenue is a fraction of its closest competitors. With all the competition, the sky-high valuation, and the risk involved, QCI is a stock I'm avoiding.Read NextJan 23, 2026 •By Leo SunForget Quantum Computing Stock: Buy This Dividend‑Paying Quantum Pioneer, And Never SellJan 18, 2026 •By Keith NoonanWhy Quantum Computing Stock Plummeted 38% Last Year but Is Soaring in 2026Jan 3, 2026 •By Chris NeigerPrediction: Where Quantum Computing Inc. Will Be in 3 YearsDec 24, 2025 •By Catie HoganWill Quantum Computing Inc. (QUBT) Stock Keep Its Losing Streak Going in 2026?Dec 22, 2025 •By Rich SmithWhy Quantum Computing Stock Popped TodayDec 19, 2025 •By Scott LevineWhy Quantum Computing Stock Is Plummeting This WeekAbout the AuthorLyle Daly is a contributing Motley Fool stock market analyst covering information technology and cryptocurrency. Lyle has been a contributor at the financial services company since 2018. His work has been featured on USA Today, Yahoo Finance, MSN, Fox Business, and Nasdaq. Before joining The Motley Fool, he wrote for financial brands including Intuit.TMFLyleDalyX@LyleDalyStocks MentionedQuantum ComputingNASDAQ: QUBT$11.46 (0.04%) $0.54AlphabetNASDAQ: GOOGL$328.12 (0.01%) $2.42International Business MachinesNYSE: IBM$292.42 (0.01%) $2.25NvidiaNASDAQ: NVDA$187.67 (+0.02%) $+2.83AlphabetNASDAQ: GOOG$328.60 (0.01%) $2.24IonQNYSE: IONQ$47.25 (0.04%) $2.08Rigetti ComputingNASDAQ: RGTI$23.48 (0.06%) $1.49D-Wave QuantumNYSE: QBTS$25.64 (0.07%) $1.79*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.