Honeywell’s Quantum Arm Targets $10B Valuation in Funding Push - Quantum Leap or Overhyped Bubble?

Honeywell's quantum computing division charges toward massive funding round—eye-popping $10 billion valuation signals either groundbreaking innovation or another tech sector fantasy.

Quantum Gold Rush

Traditional industrial giant bets big on quantum future as investors scramble for position in what could be the next computing revolution—or the most expensive science experiment on Wall Street.

Market Reality Check

While quantum promises to revolutionize everything from cryptography to drug discovery, skeptics note the sector's track record of overpromising and underdelivering—because nothing says 'solid investment' like technology that might not work for another decade.

Finance's latest shiny object gets the billionaire treatment while actual quantum breakthroughs remain, well, theoretical.

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The potential fundraising involves both current and prospective investors. importantly, semiconductor giant Nvidia (NVDA) is among the companies that have been approached for a possible investment.

However, it is worth noting that the talks are ongoing, and there is no guarantee that a final agreement will be reached.

This capital raise comes after Quantinuum raised $300 million in its first equity round since its formation, at a pre-money valuation of $5 billion. Thus, the latest round nearly doubles Quantinuum’s valuation.

Quantinuum’s Path to a Trillion-Dollar Market

Quantinuum was formed in 2021 through the merger of Cambridge Quantum and Honeywell Quantum Solutions. Since then, the company has rapidly advanced its position in quantum computing, aiming to build a fully fault-tolerant quantum computer by 2030.

In 2024, it achieved a major milestone by showing 12 logical qubits in collaboration with Microsoft (MSFT), marking a big step toward building larger, more powerful quantum systems.

Further, its upcoming Helios system is expected to support enough logical qubits to outperform classical computers in fields like finance, chemistry, and computational biology. These steps are part of a bigger plan to make quantum computing useful in the real world and tap into a projected trillion-dollar market.

Is HON Stock a Good Buy?

Turning to Wall Street, HON stock has a Moderate Buy consensus rating based on five Buys and six Holds assigned in the last three months. At $249.78, the average Honeywell stock price target implies a 14.66% upside potential.