The share price of Quantum Computing Inc. (NASDAQ: QUBT), an integrated photonics company focused on developing and commercializing quantum computing technologies, lost over 40% of its value on Thursday, December 19th. Nevertheless, the stock has risen a whopping 300% within a month. A recent rally in quantum computing stocks has also given QUBT stock a boost. Unlike traditional computers, which work with binary bits that can only be one or zero at any given time, quantum computers use qubits that can exist in multiple states at the same time. This allows quantum computers to perform complex calculations with fundamentally different computational capabilities. This allows quantum computers to process large amounts of data and examine countless possible outcomes at once.

The application of quantum computing could range from financial modeling and drug discovery to materials science, among others. However, there is a fundamental challenge in quantum computing, as more errors occur as the system becomes more complex and the number of qubits increases. As with any new futuristic technology, things can be volatile at times. However, if you want to create an uptrend with a smoother trajectory than a single stock, consider the following High quality portfolio, which has outperformed the S&P and returned >91% since inception.

In particular, there have been some recent advances in quantum space with Google’s Willow chip and Amazon’s Quantum Embark. This has fueled the rally in quant stocks overall, including QUBT stock. Additionally, the $2.7 billion in government funding for quantum computing bodes well for these stocks.

Quantum Computing Inc. (QCi) specializes in developing low-cost quantum computers designed to operate at room temperature and consume low power. The company is in the development phase and has limited revenue. The company’s product line includes the Dirac-3 quantum computer, EmuCore – a reservoir computing product, and a frequency converter. The company focuses on four key industries: high-performance computing, cybersecurity, imaging and sensing.

Although quantum computing is promising, it is still at a developmental stage and is not yet ready for widespread practical implementation across all industries. QCi’s current revenue base of $386,000 in the trailing twelve months is trivial. Like most other quantum computing stocks, QUBT is a high-risk, high-growth story with several factors at play, including technological improvements and costs. The company could potentially sell several quantum computers in the coming years, which could further boost its stock price. However, losses remain a key factor. The company reported a trailing 12-month operating loss of $25 million. As an investor, you are betting on the future potential of quantum computing and QCi’s place within it. Also take a look What’s Behind the 500% Surge in QBTS Stock?

Looking at past performance, QUBT stock has outperformed some of its peers, including RGTI and QBTS, up over 1,400% this year. The recent rise in QUBT stock comes as the company received a contract from NASA. The space agency has selected QCi’s Dirac-3 to meet its demanding imaging and data processing needs.

Thursday’s sharp decline in QUBT coincided with the broader cut in quantum computing stocks. These stocks are speculative because the technology is still years away from widespread adoption. They performed well especially after the Google Willow update and continued their success along with the broader markets. However, broader markets took a hit after the US Federal Reserve adopted more hawkish policies for 2025. Inflation could be harder to tame in the coming months than previously expected. That doesn’t bode well for the markets and investors have dumped speculative stocks. For those confident in the growth of quantum computing, the recent decline provides an entry point, while those expecting deeper cuts in markets will likely wait for even lower prices. Nonetheless, the recent agreement with NASA should boost investor optimism and potentially pave the way for acquiring more customers.

Notably, QUBT stock’s rise over the past six years has been anything but consistent, as its annual returns have been significantly more volatile than those of the S&P 500. The stock’s returns were -49% in 2019, 129% in 2020, and -50% % % in 2021, -56% in 2022 and -40% in 2023. In contrast, this is Trefi’s High Quality (HQ) portfolio is significantly less volatile with a collection of 30 stocks. And it has outperformed the S&P 500 every year in the same period. Why is that? As a group, the stocks in the HQ Portfolio offered better returns with lower risk compared to the benchmark index. less of a rollercoaster ride, as the key performance indicators of the HQ portfolio show.