Why Quantum Computing Inc. (QUBT) is Plunging So Far in 2025
We recently compiled a list of the . In this article, we are going to take a look at where Quantum Computing Inc. (NASDAQ:QUBT) stands against the other AI stocks.
Investors have been turning sour on the AI industry. Many have expected AI stocks to decline for the past two years, but that did not turn out to be the case and AI companies proved bears wrong in each of the past eight or so quarters.
Microsoft has canceled its data center contracts and Trump's tariff plans are increasingly complicating the AI narrative, especially for semiconductor companies that derive a good portion of their revenue from China.
Perhaps AI could prove the bears wrong again, but considering even Nvidia's recent earnings beat failed to overpower the cautiousness investors now have about AI, it is worth looking into some bearish arguments.
A good way to do that is by looking into AI stocks that have corrected the most so far this year. The AI industry is quite broad and you'll be able to gain useful insight into some major AI sectors and their challengers if you look into why these stocks have been declining.
For this article, I screened the worst-performing AI stocks year-to-date. Stocks that I have covered recently will be excluded from this list.
I will also mention the number of hedge fund investors in these stocks. Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter's strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points ().
A data analyst pouring over a chart, the intricacies of its lines being revealed.
Number of Hedge Fund Holders In Q4 2024: 6
Quantum Computing Inc. (NASDAQ:QUBT) is a quantum computing company.
The stock is down significantly so far in 2025 due to the broader AI industry starting to correct as investors turn sour. Microsoft canceled some of its data center leases and the spillover effect is partly why Quantum Computing Inc. (NASDAQ:QUBT) stock has declined.
Several class action lawsuits have been filed against Quantum Computing Inc., alleging that the company overstated its tech, progress on its thin-film lithium niobate (TFLN) foundry, and revenues from related-party transactions.
Furthermore, Microsoft's Majorana announcement was a great breakthrough, but it failed to drive up long-term hype in quantum computing stocks.
As with most quantum computing startups, the company is dilutive and unprofitable.
The consensus price target of $8.5 implies 24.09% upside.
Quantum Computing Inc. (NASDAQ:QUBT) is down 58.58% year-to-date.
Overall QUBT ranks 2nd on our list of the AI stocks that are plunging so far in 2025. While we acknowledge the potential of QUBT as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than QUBT but that trades at less than 5 times its earnings, check out our report about the .
READ NEXT: 20 Best AI Stocks to Buy Now and
Disclosure: None. This article is originally published at Insider Monkey.
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