NTT (TSE:9432): Evaluating Valuation After 1-Million Qubit Quantum Computer Announcement with OptQC

NTT (TSE:9432) has drawn investor attention after announcing a collaboration with OptQC Corp., aiming to develop a 1-million qubit optical quantum computer by 2030. The partnership was unveiled during NTT’s 2025 R&D Forum in Tokyo.

See our latest analysis for NTT.

NTT’s big quantum leap announcement comes at a pivotal time for the stock. While the 1-year total shareholder return is a modest 1.2%, momentum has cooled in recent months, with share price down around 6% over the past quarter. Longer-term investors have fared significantly better, with a strong 80% total return over five years. Confidence in the company’s big vision may depend on patience and a belief in its innovation pipeline.

If the latest tech breakthroughs have you curious about what else is on the horizon, it’s a perfect moment to explore the landscape with our curated list of top innovators: See the full list for free.

With shares still trading at a discount to analyst price targets and robust growth projections in play, investors are left to wonder: Is NTT’s quantum push a bargain, or is future success already built into the stock?

Most Popular Narrative: 14.9% Undervalued

With NTT’s fair value pegged nearly 15% above its last close, the narrative sets a notably higher bar for what the stock could be worth. That difference in valuation comes down to expectations for how strategic digital infrastructure investments will shape NTT’s growth trajectory.

NTT's investment in proprietary technologies (e.g., IOWN, advanced LLMs like tsuzumi 2, and photonics) positions it to benefit from surging connectivity and low-latency compute requirements driven by the global rollout of 5G/6G and edge computing. These developments underpin sustainable earnings growth and an expanded addressable market for high-value services, supporting future margin and EBIT expansion.

Read the complete narrative.

Want to know which high-stakes bets put NTT’s future value so far above its current price? The narrative hinges on aggressive tech rollouts, rising margins, and a transformation plan with numbers that might surprise you. Curious about the bold assumptions fueling this upside? See how the calculations stack up. Dive into the full breakdown and decide if these projections add up.

Result: Fair Value of ¥179 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, persistent declines in mobile revenues or sluggish overseas performance could challenge NTT’s growth narrative and have a negative impact on long-term profitability.

Find out about the key risks to this NTT narrative.

Build Your Own NTT Narrative

If you have a different perspective or want to put our assumptions to the test, it only takes a few minutes to shape your own spin on NTT’s outlook. Do it your way

A great starting point for your NTT research is our analysis highlighting 3 key rewards and 2 important warning signs that could impact your investment decision.

Looking for More Smart Investment Ideas?

Don't wait to make your next move. Expand your portfolio with investments others might overlook. The right opportunities often go to those who act first.

• Tap into tomorrow’s high-flyers and review these 27 AI penny stocks that are revolutionizing entire industries with artificial intelligence and automation solutions.
• Unlock reliable payouts by checking out these 18 dividend stocks with yields > 3% for companies delivering consistent income with solid dividend yields and healthy balance sheets.
• Jump ahead of the crowd and research these 901 undervalued stocks based on cash flows to uncover stocks trading below their true worth, giving you real upside potential from day one.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com