Quantum Computing Inc. (QUBT), a company specializing in quantum technologies, has announced two significant commercial agreements, marking its entry into the automotive and financial cybersecurity sectors. A major global automaker purchased its EmuCore device for AI applications, while a top-five U.S. bank placed a substantial order for its quantum communication system to build a new cybersecurity lab.
Key Takeaways
- Quantum Computing Inc. (QCi) sold its EmuCore reservoir computing device to a major global automaker for edge AI development.
- The company received a $332,000 order from a top-five U.S. bank for its quantum communication system, its first U.S. commercial cybersecurity sale.
- The bank plans to establish a Cybersecurity Quantum Optics Lab to test advanced quantum security technologies like quantum key distribution.
- Despite these deals, QUBT's stock faces valuation concerns, trading at a significantly high price-to-sales ratio compared to the industry average.
QCi Enters Automotive Sector with EmuCore Sale
During the second quarter of 2025, Quantum Computing Inc. confirmed the sale of its EmuCore device to a prominent global automotive manufacturer. This transaction represents a critical step for QCi in applying its quantum-derived technologies to real-world industrial problems.
The EmuCore device is designed as a secure, low-power platform for machine learning. Built on a field-programmable gate array (FPGA), it is particularly suited for exploring edge computing use cases, where data is processed closer to its source rather than in a centralized cloud.
Automotive companies are increasingly investing in edge computing to power features like autonomous driving, in-car infotainment systems, and predictive maintenance. The EmuCore device aims to accelerate the training of artificial intelligence models in these environments, potentially leading to faster and more efficient processing of complex workloads directly within a vehicle's systems.
What is Reservoir Computing?
Reservoir computing is a framework for computation derived from recurrent neural network theory. It uses a fixed, non-linear system (the "reservoir") to map input signals into a higher-dimensional space. This approach can simplify the training process for machine learning models, making it efficient for tasks involving time-series data, which is common in automotive and industrial applications.
This sale serves as an important validation of QCi's reservoir computing platform. The company stated that this successful deployment is expected to encourage further adoption of its more advanced PCIe-based photonic reservoir computing units in the future.
Major U.S. Bank Invests in Quantum Cybersecurity
In a separate announcement in July, QCi disclosed its first commercial sale of quantum cybersecurity solutions within the United States. A top-five U.S. bank placed a $332,000 purchase order for the company's quantum communication system.
The system is designed to provide next-generation security by leveraging the principles of quantum mechanics. It utilizes entangled photons transmitted at telecom wavelengths, making it compatible with existing fiber optic infrastructure. The hardware is delivered in a compact, rack-mountable form factor for easier integration into data centers.
According to QCi, the technology supports both quantum encryption and the company's patented quantum authentication methods. These systems are designed to be resistant to attacks from both classical and future quantum computers, addressing a growing concern in the financial industry about long-term data security.
Building a Quantum Security Lab
The purchasing bank intends to use the QCi system to establish a dedicated Cybersecurity Quantum Optics Lab. This facility will serve as a testing ground for a new generation of security tools, including:
- Quantum Key Distribution (QKD): A secure communication method that uses quantum mechanics to exchange encryption keys.
- Quantum Authentication: A method to verify identity with security guaranteed by quantum principles.
- Quantum Random Number Generation (QRNG): A technique to produce truly unpredictable random numbers, which are crucial for cryptographic applications.
This investment highlights a proactive approach by a major financial institution to prepare for the future of cybersecurity, where quantum computing could render current encryption standards obsolete.
Developments in the Broader Quantum Sector
The quantum computing industry continues to see rapid advancements from various companies, each pursuing different technological paths. QCi's recent commercial wins occur as its competitors also report significant progress.
Rigetti Computing's Technical and Global Advances
Rigetti Computing (RGTI) has been focused on both technological innovation and expanding its international presence. The company recently signed a memorandum of understanding (MOU) with India’s Centre for Development of Advanced Computing (C-DAC), signaling its strategic entry into the Indian market.
On the hardware front, Rigetti unveiled its Cepheus-1-36Q system in the second quarter. This four-chiplet quantum processor reportedly achieved a 99.5% two-qubit gate fidelity and cut error rates in half compared to its previous designs, a crucial step toward building fault-tolerant quantum computers.
D-Wave Focuses on Commercial Applications
D-Wave Quantum Inc. (QBTS) continues to emphasize the practical, real-world application of its quantum annealing technology. The company launched its Advantage2 quantum computer, which features over 4,400 qubits and significant improvements in connectivity, coherence time, and noise reduction.
A notable commercial deployment for D-Wave involved a collaboration with Ford Otosan. The company's hybrid-quantum system was used to optimize the production scheduling for the Ford Transit vehicle line, reducing the time required to schedule 1,000 vehicles from 30 minutes to less than 5 minutes.
This use case demonstrates how quantum-hybrid systems can deliver tangible business value today by solving complex optimization problems that are challenging for classical computers.
QUBT's Financial Performance and Valuation
Despite its recent commercial successes, the financial metrics for Quantum Computing Inc. present a mixed picture for investors. The company's stock performance has been extraordinary over the past year.
Shares of QUBT have surged an incredible 2615.3% in the last 12 months. This growth vastly outperforms the broader industry, which saw an average growth of 46%, and the S&P 500 composite, which grew by 20.8% over the same period.
However, this rapid appreciation has led to significant concerns about the company's valuation. QUBT currently trades at a forward 12-month price-to-sales (P/S) ratio of 2046.90X. This figure is exceptionally high when compared to the industry average P/S ratio of 5.50X, suggesting that the stock price is far ahead of its current sales figures.
Furthermore, analyst estimates have shown some caution. In the past 30 days, the consensus loss per share estimate for 2025 has widened by 10 cents. Reflecting these concerns, the stock currently holds a Zacks Rank #4 (Sell), indicating that analysts recommend selling the shares at their current valuation.
