Why Quantum Computing Stock Plummeted 38% Last Year but Is Soaring in 2026

Quantum Computing (NASDAQ: QUBT) stock went through volatile trading across 2025 and ended the year deeply in the red. The company's share price sank 38% across the stretch, according to data from S&P Global Market Intelligence. Over the same period, the S&P 500 rose 16.4%, and the Nasdaq Composite climbed 20.4%.

After surging roughly 1,710% in 2024, Quantum Computing got hit with a big pullback in last year's trading and posted the weakest performance among the major, pure-play quantum stocks.

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Quantum Computing stock cooled off in 2025

Quantum Computing was one of the market's hottest stocks in 2024, but it cooled off early in last year's trading. The stock sank in January following comments from Nvidia CEO Jensen Huang suggesting that the development of quantum machines that were very commercially useful was further away than many analysts and industry watchers expected. Quantum Computing saw significant recovery momentum after Huang issued an updated, and more optimistic, outlook on the quantum space later in the year, but it was hit with additional rounds of volatility.

The company's share price saw a substantial decline in October amid bearish valuation trends impacting the broader quantum industry, and the stock got hit with another round of huge pullbacks in November in response to rising concerns that artificial intelligence (AI) stocks and other richly valued growth stocks were priced at bubble levels.

Across last year's first three quarters, Quantum Computing reported revenue of $484,000 -- up from sales of $311,000 across the same period in 2024. Revenue has been increasing, but the company's hugely growth-dependent valuation also sets the stage for big downside volatility when investors broadly turn more cautious on growth stocks.

Quantum Computing is bouncing back this year

Quantum Computing stock has been heating back up early in 2026. As of this writing, the company's share price is up 24% year to date. The stock has moved higher thanks to news surrounding the quantum specialist's acquisition of Luminar Semiconductor and bullish analyst coverage.

In addition to buying Luminar Semiconductor, Quantum Computing has submitted a bid to purchase other assets held by Luminar Technologies. The quantum specialist said on Jan. 12 that it had issued a bid of roughly $22 million for the assets and expects that the purchase could close in the current quarter if its bid is approved.

On Jan. 15, Rosenblatt initiated coverage on Quantum Computing stock with a buy rating and a one-year price target of $22 per share. The firm's analysts believe that the company has strong assets in the quantum-computing space and offers a favorable risk-reward profile. As of this writing, the price target suggests potential upside of roughly 73%.

Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia. The Motley Fool has a disclosure policy.