Cooling inflation has done little to restore investor confidence in speculative growth stocks, leaving quantum computing names among the hardest hit in recent weeks.
U.S. consumer inflation slowed to 3.5% in June from 4.2% in May, while core inflation held steady at 2.6%, according to data released July 14, 2026 by the U.S. Bureau of Labor Statistics.
Despite the moderation in price pressures, the Federal Reserve is maintaining a cautious stance, keeping the federal funds rate at 3.50%-3.75% and signaling that future decisions will remain data dependent.
Inflation still exceeds the Fed’s 2% target, and a resilient labor market, healthy wage growth, and lingering geopolitical risks have reinforced expectations that elevated rates could persist.
Investors have rotated sharply away from high-beta technology names as a result, triggering a severe correction across pure-play quantum computing stocks over the past 30 days.
IonQ (IONQ) has plunged 35.7% over that period, while Rigetti Computing (RGTI) dropped 29% and D-Wave Quantum (QBTS) fell 27.8%, each dramatically underperforming the Zacks Computer and Technology sector’s 4.5% decline.
Despite the sector-wide pain, the sell-off appears to have created a more attractive entry point, particularly for Quantum Computing Inc. (QUBT), whose commercial momentum has been building steadily.
The Trump administration’s June executive orders on quantum innovation are aimed at accelerating commercialization through an updated National Quantum Strategy and expanded quantum networking infrastructure.
Additional federal support includes the Department of Energy’s Quantum Computer for Application Development and Discovery Science initiative and faster adoption of post-quantum cybersecurity standards across government agencies.
These policy tailwinds, combined with increasing enterprise adoption and steady technological progress, provide solid long-term support for the sector despite near-term macroeconomic headwinds.
QUBT delivered first-quarter 2026 revenues of $3.7 million, compared with just $0.1 million in the year-ago quarter, driven by recently acquired businesses and growing demand for its integrated photonics portfolio.
The company’s upcoming second-quarter report is expected to show further revenue acceleration, improving operating leverage, and updates on customer engagements for its quantum photonic chips, LiDAR, and quantum cybersecurity solutions.
Continued integration of Luminar Semiconductor and NuCrypt, along with higher utilization of its Arizona chip foundry, could support further estimate revisions and multiple expansion through the remainder of 2026.
The Zacks Consensus Estimate for QUBT’s 2026 revenues stands at $21.7 million, compared with reported revenues of just $0.7 million in the prior year, reflecting extraordinary expected growth.
Based on price targets from six analysts, the average target of $18.33 for QUBT represents a potential upside of 120.3% from its last closing price, and the stock currently carries a Zacks Rank of 2, or Buy.
