Quantum Computing (QUBT) shares soared nearly 30% on Wednesday after Nvidia (NVDA) CEO Jensen Huang said quantum technology “is reaching an inflection point.”

In his keynote speech at Nvidia’s developer conference in Paris, Huang said quantum computers could begin solving commercially relevant problems within the next few years. 

Including today’s rally, Quantum Computing stock is up more than 300% versus its March low.  

Why Is Quantum Computing Stock Flying High Today?

Investors are cheering QUBT shares today since Huang’s comment indicates growing confidence in the near-term commercial viability of quantum technology. 

Investors are likely reading it as a sign that the company’s products could soon have practical use cases in areas including but not restricted to optimization, cryptography, and materials science. 

What it may mean for Quantum Computing stock over time is increased demand, investments, and partnerships, which could accelerate the Nasdaq-listed firm’s path to generating revenue.   

Note that Huang’s remarks suggest infrastructure and software ecosystems will grow rather rapidly around quantum computing – creating more opportunities for early players like QUBT. 

Is There Any Further Upside Left in QUBT Shares?

Despite Nvidia’s confidence in quantum technology, QUBT stock remains unattractive as its recent surge has pushed the price to levels that defy traditional valuation multiples. 

Quantum Computing reported just $39,000 of revenue in Q1.

Still, the company’s market cap has ballooned to well over $2.1 billion, indicating it’s disconnected from fundamentals and is driven more by hype than actual performance. 

Investors are recommended caution in buying this quantum computing stock also because it’s burning cash, which raises concerns of future dilution. 

All in all, QUBT has a lot to prove in terms of technology, execution, and market fit. For now, it represents more of a speculative bet than a sound long-term investment. 

How Wall Street Recommends Playing Quantum Computing

Wall Street also agrees that now is a suitable time for caution on Quantum Computing shares. 

According to Barchart, the consensus rating on QUBT stock remains a “Moderate Buy” and the mean target of $22 implies 15% upside. However, this is based on only one analyst in coverage, making QUBT a speculative bet.