Quantum Computing Stock is Up 139% This Week, Here’s Why

The launch of a groundbreaking new quantum computing chip from Google (GOOGL) has thrust a number of smaller quantum computing stocks into the spotlight, including the aptly named Quantum Computing (QUBT) - which is up 44% today, bringing its two-day gain north of 139%.

Volume has soared to well above normal levels on the recent breakout, with more than 100 million QUBT shares changing hands so far in both Monday and Tuesday’s trading. By comparison, the stock’s average daily volume is closer to 55.9 million shares.

Along with the halo lift from Google, QUBT stock has reported some headline-grabbing news of its own lately. Most notably, Quantum Computing just won a NASA contract to apply its Dirac-3 entropy quantum optimization machine, to help optimize, extract, and reconstruct advanced imaging and information from radar data. 

Previously, the stock had rallied sharply in November after announcing back-to-back orders for its TFLN photonic chip foundry.

QUBT stock has now increased in value by more than 600% since mid-November, and is up 1,654% on a year-to-date basis. The 14-day Relative Strength Index (RSI) has soared to 83.4, suggesting the stock is currently overbought, which could lead to a potential pullback. 

In fact, on an intraday basis, QUBT has already pulled back more than 9% from today’s newly set three-year high of $17.64 - underscoring the fact that this fast-moving quantum computing stock is best reserved for investors with a healthy appetite for risk.