One of the top companies I'm keeping my eye on right now happens to be among the leading quantum computing companies in North America, and globally.
Shares of Infleqtion (INFQ) have been on a roller coaster ride lately, partly due to the volatility we've seen across this sector.
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Looking at the chart above, it is clear we're entering a period in which volatility is becoming more commonplace. Given the advances seen in quantum computing technology, changes in market sentiment around the overall growth story of this industry can drive significant price swings on a monthly basis.
With investors increasingly looking for signs of where companies like Infleqtion could be headed, let's dive into one of the more recent headlines that paints a bullish picture: the $20 million contract Infleqtion just scored with NASA.
Infleqtion builds commercial quantum technology systems using neutral atoms, including quantum computers, precision sensors, and atomic clocks. It announced it will be working with NASA to develop a Quantum Gravity Gradiometer Pathfinder, which is expected to provide the company with the title of being the first to build a space-based quantum gravity sensor.
It's the stuff of science fiction, to be sure. But with this technology progressing in a meaningful way, and the U.S. government seemingly keen on investing in the space, investors are clearly watching the market action closely in the sector. I'm one of them, and Infleqtion has made it onto my watchlist as a result of these moves.
Looking at the company's fundamentals above, it's clear to me that Infleqtion is in a similar place to many other quantum computing companies. The stock has bounced around as expectations of future revenue and earnings fluctuate, driven by headlines like these. But with plenty of engineering prowess and newfound name recognition thanks to this NASA partnership, perhaps the discussion will stay focused on Infleqtion's future growth potential instead of its near-term losses.
With negative interest coverage and a lack of revenue, raising money in this environment is growing increasingly difficult. On that basis alone, I do think many investors may be wary of taking on additional portfolio risk, given concerns around AI and other technologies that have seen these sectors tick down of late.
Of course, I'm just one prognosticator, and there are plenty of other very well-educated analysts to look at when it comes to difficult-to-assess firms like Infleqtion.
The company's consensus price target of $21.75 per share prices in some significant upside from current levels (around 50%), which would be a big win for any investor. It's also worth noting that this stock has traded at this level for the past year.
The real question in my mind about whether this price target can be hit really rests on market momentum. Right now, momentum appears to be waning for some of the highest-growth names in the market. If this pressure continues, I think INFQ stock could hover around where it is now, or even trend lower.
That said, this is an exciting stock I've put on my watchlist as a result, and I'd suggest others do the same.
On the date of publication, Chris MacDonald did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com
Infleqtion Rises 6% on $20M NASA Quantum Gravity Award, IonQ Climbs 5% 24/7 Wall St. • 24d ago INFQ IONQ
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Infleqtion’s NASA Quantum Mission Tests Path To Real-World Sensing Revenue Simply Wall St. • 6mo ago
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INFQ Stock’s Quantum Rally Gets A NASA Boost: $20M Contract Has Retail Chasing Massive Upside Stocktwits • 24d ago INFQ
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How Infleqtion’s NASA-Driven Revenue Gives It an Edge in Quantum Computing Barrons.com • 1mo ago INFQ RGTI
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Why B. Riley Just Issued a $23 Price Target on Infleqtion Stock Barchart • 11d ago INFQ
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