Infleqtion Went Public in February -- Here's Why This Cold Atom Stock Could Be a Breakout Buy

Infleqtion (NYSE: INFQ), a quantum computing company focused on cold-atom technologies, went public through a merger with a special-purpose acquisition company (SPAC) on Feb. 17. Its stock started trading at $14.25 on the first day, but it trades below $12 as of this writing.

Should investors consider buying this unloved quantum stock as the bulls look the other way? Let's review its business model, growth rates, and valuations to see if brighter days are ahead.

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What does Infleqtion do?

Quantum computers can crunch more data and process certain computing tasks faster than classical computers. While classical computers still store data in binary bits (zeros and ones), quantum computers can simultaneously occupy multiple states to explore a wider range of potential outcomes. However, quantum computers are also much larger and pricier than classical computers -- and they generate a higher ratio of errors in their speedy calculations.

To address those issues, quantum computing companies are developing smaller and more scalable chips and systems. Most of the older quantum companies tried to achieve that by accelerating electrons through "superconducting" loops. Those systems were cheaper and easier to scale, but they sacrificed accuracy and required cryogenic refrigeration.

Infleqtion addresses those issues by cooling, trapping, and manipulating neutral atoms with lasers to create qubits. Unlike electron-based systems, which require large cryogenic refrigeration systems, Infleqtion uses only lasers and smaller vacuum chambers for cooling. These systems are smaller, more power-efficient, and more scalable than electron systems.

Infleqtion is building its own quantum systems, but it generates most of its revenue from quantum sensors and timing products -- such as atomic clocks, gravimeters, and inertial navigation systems -- for the government, telecom, and energy markets. These ultra-precise sensors can be used for navigation without GPS (useful for submarines and military aircraft), subsurface mapping to locate resources, and timing mechanisms for defense systems.

DARPA, NASA, and other government agencies have been ramping up their investments in these sensors because traditional GPS, communications, and radar systems can be easily disrupted. Most of Infleqtion's revenue comes from those government contracts.

How fast is Infleqtion growing?

In 2025, Infleqtion generated $32.5 million in revenue. For 2026, it expects that figure to rise 23% to $40 million as it sells more quantum-enabled precision timers and sensors. It also delivered its first 100-qubit quantum computing system to the National Quantum Computing Center in the UK this March, but that sale won't account for much of its revenue.

Infleqtion posted an operating loss of $35.3 million in 2025. Even after excluding its stock-based compensation and some recent acquisition and integration costs, it posted an adjusted operating loss of $28.1 million. Therefore, its fledgling business model isn't sustainable yet.

But looking ahead, analysts expect Infleqtion's revenue to rise 25% to $49.9 million in 2027 and 39% to $69.4 million in 2028. Most of that growth should be driven by its rising sales of quantum sensors and timing products, as well as its expansion into more commercial sectors.

With a market cap of $2.57 billion, Infleqtion's stock isn't cheap at 37 times its 2028 sales. However, the quantum computing market could still grow at a 30.6% CAGR from 2026 to 2034, according to Fortune Business Insights, as the nascent market evolves and expands.

If Infleqtion matches Wall Street's estimates through 2028, continues growing its top line at a 30% CAGR through 2034, and trades at 30 times its forward sales by the start of the final year, its market cap could nearly quadruple to $10 billion over the next eight years.

That's all speculation for now, but Infleqtion could have a lot more upside as its core sensing and timing business expands and it launches additional quantum computing systems equipped with its cold-atom technology. I wouldn't go all-in on the stock in this choppy market, but it might be worth nibbling on as an under-the-radar play on the quantum computing sector.

Leo Sun has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.