Quantum Computing Inc. (QCi) closed at $12.31 on Friday, gaining 7.89% for the day and nearly 17% for the week, as a broad rally in quantum computing stocks followed news of a planned $2 billion U.S. government push into the sector. U.S. markets were closed Monday for Memorial Day, with Nasdaq set to resume trading Tuesday at 9:30 a.m. Eastern.
The stock's surge came after Reuters reported that the Trump administration aims to acquire equity stakes in nine quantum computing firms, including a new IBM venture named Anderon, which is slated to receive $1 billion. D-Wave Quantum and Rigetti Computing are each in line for roughly $100 million. QCi, however, was not named among the companies set to receive federal funding, leaving investors to question whether its recent gains are sustainable.
Friday's close represented a $0.90 advance on the day, with approximately 67.5 million shares changing hands. For the week, QCi shares climbed from last Friday's $10.51 close. In comparison, the Nasdaq Composite added just 0.5% over the same period, underscoring the outsized moves in quantum names.
QCi, based in Hoboken, New Jersey, describes itself as a quantum optics and integrated photonics company, developing chips and systems that use light to process or transmit data with lower energy consumption than standard electronics. The company's most recent update came on May 11, when it reported first-quarter revenue of $3.7 million, up sharply from $39,000 a year earlier, primarily due to its February acquisition of Luminar Semiconductor and the March purchase of NuCrypt. Net loss for the quarter was $4.1 million, with operating expenses of $19.8 million. Cash and investments stood at approximately $1.4 billion as of March 31.
CEO Yuping Huang said in the earnings release that the company made "significant operational progress" and is focused on delivering "accessible, scalable, and affordable quantum machines and photonic solutions." At a May 13 investor conference, QCi highlighted its small-batch manufacturing ramp at its Fab 1 photonic-chip foundry and initial planning for a higher-volume Fab 2 facility. The company also reported a contract backlog of around $16 million at quarter-end.
Despite the positive developments, risks remain. QCi's revenue is still modest and heavily dependent on acquisitions. The broader quantum computing sector continues to face technical hurdles, including high error rates that limit practical applications. For QCi, any delay in converting its foundry work, photonics technology, or backlog into recurring sales could pressure a stock now valued near $2.8 billion.
When Nasdaq reopens Tuesday, traders will be watching to see whether Friday's pop was merely a pre-holiday move or the start of a sustained rally. The company still needs to demonstrate that its photonics buildout can generate more than early-stage sales and conference presentations.
