Morgan Stanley Sees Quantum Computing A $100B Market, And It's Betting On This Stock

Morgan Stanley elevated Quantinuum to an overweight rating with an 88% upside target, naming it the top pure-play quantum computing stock.

• Morgan Stanley raised Quantinuum from equal-weight to overweight, attaching a $62 target price that implies approximately 88% growth from its prior close. 
• Analyst Joseph Moore highlighted Quantinuum as the most advanced pure-play firm in technical execution and hardware progress.
• Quantinuum’s sales are expected to jump from nearly $270 million in 2028 to $2 billion by 2030. 

Morgan Stanley on Thursday named Quantinuum Inc. (QNT) as its top stock recommendation for investors seeking exposure to the quantum computing industry, projecting the sector could eventually generate over $100 billion in annual revenue.

In a note released Thursday, analyst Joseph Moore upgraded the company's rating from equal-weight to overweight with a price target of $62 per share, representing an upside potential of roughly 88% compared to the stock's closing price on Wednesday.

Quantum Computing: Morgan Stanley View

Morgan Stanley implemented an in-house evaluation framework with four parameters, including technical progress, execution track record, manufacturing scalability, and operational advancement. 

The firm assigned the heaviest weight to technological capability because it offers clearer operational distinctions and evidence of performance compared to sector peers.

According to Moore, Quantinuum had the clearest lead in technological capability and execution among other quantum firms. Morgan Stanley also highlighted that QNT currently trades at the lowest price-to-earnings multiple for 2030 among its peer group.

Quantinuum Financial Outlook

Morgan Stanley projects that commercial adoption of early quantum computers could expand the total addressable market from approximately $10 billion in 2030 to over $100 billion by 2040.

Morgan Stanley identified 2027 as a pivotal turning point for hardware development, pointing to Quantinuum’s upcoming "Sol" system as a primary technological landmark for the industry.

Morgan Stanley estimates that the firm will grow annual revenue from roughly $270 million in 2028 to about $2 billion by 2030 as the commercial rollout scales up.

QNT Stock: Retail View 

Retail sentiment on Stocktwits was ‘bearish’ with ‘low’ message volumes. 

QNT stock has lost 40% of its value year-to-date.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<