‘A Hidden Quantum Gem’: Why Wedbush Thinks Infleqtion Stock Is Undervalued

The quantum computing sector has seen a big wave of companies go public this year, one of those being Infleqtion (NYSE:INFQ), which made its debut in February following a merger with a special purpose acquisition company (SPAC).

In this nascent industry, a plethora of companies are vying for attention and taking different approaches, so what makes Infleqtion stand out?

As Wedbush analyst Antoine Legault notes, the company is the only one “commercializing the entire neutral-atom stack across computing, sensing, and software from one shared technology core, and the only publicly traded neutral-atom pure-play.”

Essentially, neutral-atom quantum technology is a way of building a quantum computer using individual atoms that are electrically neutral (meaning they carry no net electric charge). Unlike other quantum computing approaches that use superconducting circuits or electrically charged ions, neutral-atom systems use uncharged individual atoms trapped and controlled with lasers as the qubits.

In Legault’s view, neutral-atom systems have become a credible and competitive modality. Given the absence of agreement on a final modality winner, the analyst sees INFQ as “one of the most compelling ways to gain exposure to the category.”

So, based on the assumption that neutral atoms represent a viable modality, the analyst sees INFQ as “meaningfully mispriced”: it holds the second-largest revenue base in the public quantum cohort yet sits sixth in valuation, trading at a “steep discount” vs. several peers even though they are expected to generate lower revenue.

Legault thinks this mispricing is driven by three factors that are expected to diminish over time. The first is “modality perception.” Neutral atoms are regarded as a newer, less established approach, not yet granted the same credibility as the more mature trapped-ion and superconducting modalities, despite “rapid technical progress.”

Secondly, with about two-thirds of revenue derived from sensing, the market might see INFQ as a sensing-focused company, assigning limited credit to its compute progress or its full-stack platform.

Lastly, the company has been on the market for only a few months and still receives limited sell-side coverage, has lower trading activity relative to peers, factors that can “weigh on valuation independent of fundamentals.”

“As the modality matures, the compute story gains recognition, and liquidity builds, we expect INFQ’s discount to the group to moderate,” Legault opined.

Meanwhile, the roster is supported by an extensive Nvidia collaboration (NVQLink, CUDA-Q, both Ising models) and is further broadened to include Safran, NASA, Voyager, and DARPA. The analyst anticipates further high-profile partnerships, with each expected to function as a “potential catalyst.”

Additionally, a proposed $100 million Department of Commerce CHIPS letter of intent (which considers a potential US government equity stake) and a recent executive order, which mandates the deployment of at least three quantum sensor projects by September 30, 2028, indicate a “clear federal demand pull for exactly what INFQ sells.”

Put all that together and Legault initiated coverage of INFQ with an Outperform (i.e., Buy) rating and $20 price target, a figure pointing toward 12-month returns of 53%. (To watch Legault’s track record, click here)

While only two other analysts have so far waded in with INFQ reviews, both are also positive, making the consensus view a Strong Buy. At $20.67, the average price target offers one-year upside of 58%. (See INFQ stock forecast)

Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.