Core Insights - D-Wave Quantum has established itself as a leading player in the quantum computing sector, with significant stock performance and positive analyst coverage driving investor interest [1][2]. Stock Performance - D-Wave's stock rose 15.4% in December, despite volatility in growth stocks, and continued to show bullish momentum into January with a 10% increase [1][6]. - The current stock price is $28.80, with a market capitalization of $9.8 billion [4]. Analyst Coverage - Mizuho initiated coverage on D-Wave with an outperform rating and a one-year price target of $46 per share, citing strengths in quantum-annealing technologies and growth potential through acquisitions [5]. - Jefferies also initiated coverage with a buy rating, emphasizing the rising demand for quantum-computing technologies as a benefit for D-Wave [6]. - Rosenblatt reiterated a buy rating and increased its one-year price target to $43 per share, highlighting the acquisition of Quantum Circuits as a strategic move [8]. Strategic Developments - D-Wave formed a U.S. government business unit, which could lead to significant government contracts and long-term sales growth [3]. - The company announced a breakthrough in scalable on-chip cryogenic control of qubits, indicating potential applications beyond its current technology [7]. - D-Wave is acquiring Quantum Circuits for $550 million, expected to close soon, which is anticipated to enhance its error-correction performance [7][9].

Core Insights - Nvidia is actively involved in quantum computing, providing essential infrastructure and software to support hybrid quantum systems, which enhance AI capabilities in complex applications like drug discovery and materials science [1][7] - The company has launched NVQLink, an architecture that connects GPUs to Quantum Processing Units (QPUs), facilitating real-time tasks essential for practical quantum computing [7][8] - Nvidia's market cap is currently $4.49 trillion, making it the most valuable company globally, with a strong focus on AI and quantum computing as key growth areas [3] Nvidia's Financial Performance - In Q3, Nvidia reported record revenue of $57 billion, a 22% increase from the previous quarter and a 62.5% year-over-year growth, with earnings of $1.30 per share [9] - The data center segment generated $51.2 billion in revenue, up 25% sequentially and 66% year-over-year, driven by accelerated computing and AI applications [9] - Analysts project a 61.68% year-over-year increase in profit to $7.59 per share for fiscal 2027, with revenue expected to grow 50.30% to $320.5 billion [10] Analyst Sentiment - Wall Street analysts have a consensus rating of "Strong Buy" for Nvidia, with 44 out of 48 analysts recommending it, and a mean price target of $256, indicating a 38.5% upside potential [11] Quantum Computing Industry Overview - Quantum computing is evolving into a transformative technology with significant commercial implications, shifting focus from its feasibility to identifying beneficiaries as commercialization progresses [6] - Companies like Amazon and D-Wave Quantum are also positioned to capitalize on quantum computing advancements, with Amazon integrating quantum solutions into its AWS platform and D-Wave being a pure-play quantum computing provider [4][20] D-Wave Quantum's Performance - D-Wave Quantum reported a 100% increase in revenue to $3.7 million in Q3, driven by system upgrades and professional services, although it faced a widening net loss of $140 million [23] - Analysts expect D-Wave's revenue to jump 55.46% year-over-year to $39.82 million in FY26, with a consensus rating of "Strong Buy" among analysts [24][26] Amazon's Quantum Computing Strategy - Amazon is leveraging its AWS platform to lead in quantum computing commercialization, offering a cloud-based quantum research platform and developing its own quantum chip, Ocelot [14][15] - The company reported a 13.4% year-over-year increase in total net sales to $180.2 billion in Q3, with AWS generating $33 billion in revenue, up 20% year-over-year [17] - Analysts forecast an 11.19% year-over-year increase in Amazon's GAAP EPS to $7.86 for 2026, with a consensus rating of "Strong Buy" [18][19]

Industry Overview - Quantum computing is an emerging technology with the potential to surpass artificial intelligence, but it is still in its early stages and has not yet been fully developed [2] - The primary challenge in quantum computing is its error-prone nature, which must be addressed before achieving fault-tolerance [3] Company: IonQ - IonQ is a leading company in quantum computing, recently achieving a two-gate fidelity of 99.99%, which, while still error-prone, positions it as a leader in the field [5] - The company utilizes trapped-ion technology, which employs identical atoms for greater stability compared to lab-fabricated qubits [6] - IonQ is developing a comprehensive quantum ecosystem similar to Nvidia's approach with GPUs, focusing on acquisitions to enhance its technology and build a quantum internet [7] Company: D-Wave Quantum - D-Wave Quantum is a pure-play quantum computing company that is close to establishing a viable commercial business model through its quantum annealing technology [8] - The company has a growing customer base and is beginning to ramp up revenue and bookings, focusing on specialized tasks like supply chain optimization [9] - D-Wave is making a significant move into gate-based systems, with over $830 million in cash available for investment, including a recent acquisition of Quantum Circuits for $300 million in stock and $250 million in cash [11]

Core Insights - D-Wave Quantum Inc. plans to acquire Quantum Circuits Inc. for $550 million, marking a significant step in solidifying its leadership in quantum computing [3] - The acquisition is aimed at expanding D-Wave's technological capabilities beyond quantum annealing to include gate-model approaches, enhancing the range of use cases for its quantum systems [4] Financial Position - D-Wave reported over $800 million in cash reserves in its Q2 2025 earnings, which has led to speculation about potential acquisitions [3] - The acquisition of Quantum Circuits will utilize part of D-Wave's $836 million cash reserves, indicating a strategic investment in growth [8] Competitive Landscape - D-Wave has historically lagged behind competitors like Rigetti Computing in developing gate-model technology, and this acquisition is expected to help close that gap [6] - Quantum Circuits is recognized for its dual-rail technology, which allows for higher-quality qubits and reduced resource requirements, positioning D-Wave to enhance its competitive edge [7] Future Prospects - D-Wave anticipates launching a dual-rail quantum system commercially in 2026, which could further solidify its market position [7]

Key Points Shares of D-Wave Quantum have rewarded investors with huge gains over the past year. The tech upstart has stood out by making advancements in commercial quantum computing. But the company's financials and valuation present challenges for prospective investors. 10 stocks we like better than D-Wave Quantum › D-Wave Quantum (NYSE: QBTS) benefited from the bull market in quantum computing stocks in 2025. Amid those gains, the stock rose more than 380% over the previous 12 months. Unfortuna ...

Expectations for quantum computing are rising fast, with global quantum computing revenues expected to reach around $9 billion by 2030. Up from $260 million in 2020, that points to over 40% annual growth for the decade. Against that backdrop, D-Wave Quantum (QBTS) has announced a major $550 million agreement to acquire Quantum Circuits Inc., a developer of error-corrected superconducting gate-model quantum systems. More News from Barchart The deal is made up of about $300 million in D-Wave common stoc ...

Core Insights - Quantum computing stocks, including IonQ, Rigetti Computing, D-Wave Quantum, and Quantum Computing Inc., are experiencing significant hype and price increases, but historical trends suggest a potential bubble burst in the near future [3][6][22] Group 1: Market Dynamics - The quantum computing sector is projected to contribute up to $850 billion to global GDP by 2040, creating a substantial addressable market that has driven stock prices up dramatically [4][6] - Since October 1, 2024, the stock prices of IonQ, Rigetti, D-Wave, and Quantum Computing Inc. have surged by 521%, 3,270%, 3,290%, and 1,790% respectively, indicating extreme investor enthusiasm [5][6] Group 2: Financial Considerations - Early-stage quantum computing companies are expected to face operating losses and cash burn, leading to share-based dilution as a common practice for raising capital [7][9] - IonQ raised $2 billion through a stock offering, selling shares at $93, which has since decreased to $50.76, highlighting the risks of dilution for existing investors [8] Group 3: Valuation Challenges - Traditional valuation metrics are difficult to apply to early-stage companies with no earnings, but the price-to-sales (P/S) ratio can provide insights; historical data shows that P/S ratios above 30 are unsustainable [11][12] - Current P/S ratios for leading quantum computing stocks indicate they remain in bubble territory, suggesting potential for significant price corrections [13] Group 4: Market Environment - The overall stock market is currently at a high valuation, with the S&P 500's Shiller P/E Ratio nearing 41, which historically signals potential downturns for high-priced stocks [15][16] - Volatility in the market tends to disproportionately affect the most expensive stocks, which could include quantum computing companies that have not yet proven their business models [17] Group 5: Competitive Landscape - The barrier to entry in the quantum computing industry is lower than perceived, with established tech giants like Alphabet and Microsoft developing their own quantum technologies, posing a threat to current players [18][21] - The first-mover advantage held by current quantum computing companies may be eroded as larger firms with more capital and resources enter the market [20][21]

Core Insights - D-Wave Quantum (QBTS) achieved over 200% share-price gain in 2025, significantly outperforming major tech companies [1][7] - The broader Computer and Technology sector gained 26% during the same period, with NVIDIA and AMD rising approximately 38.8% and 77.3% respectively [2] Company Performance - D-Wave reported rapid revenue growth and increased customer adoption, with strong liquidity and advancements in commercial quantum systems and services [4][7] - The company entered 2026 with commercially deployable technology, including production-grade quantum systems already in operation [5] - D-Wave's hybrid quantum strategy combines current annealing systems with a long-term gate-model roadmap, leading to a strong outlook for 2026 [6] Financial Outlook - D-Wave closed 2025 with over $800 million in cash and a scalable Quantum Computing as a Service platform [7] - The Zacks Consensus Estimate for 2026 revenues is $41.8 million, indicating a 61.1% growth from the previous year [12] - The estimated loss per share for 2026 is 19 cents, reflecting a 7% improvement from 2025 [12][14] Market Position - D-Wave's stock trades above its 50-day and 200-day moving averages, indicating strong momentum and a bullish trend [9] - The forward 12-month price/sales (P/S) ratio for QBTS is 164.2, significantly higher than the industry average [15] Investment Considerations - Despite strong performance, D-Wave faces challenges such as uneven revenue, operating losses, and a high valuation, which may lead to volatility [8][16]

Core Viewpoint - Quantum computing stocks, including Rigetti, D-Wave, and IonQ, have seen significant returns over the past three years, but their valuations are bubble-like and likely to collapse by 2026 due to a lack of corresponding sales and earnings growth [1][12]. Group 1: Market Overview - Quantum computing is currently a microscopic market, with sales projected to reach $4.2 billion by 2030, compared to the AI market, which is expected to total $1.8 trillion, making AI 425 times larger [8]. - General-purpose quantum computers are estimated to be a decade or two away from being useful for most enterprises, with experts suggesting that tens of thousands to millions of physical qubits will be necessary for practical applications [2][3]. Group 2: Company Performance - Rigetti Computing's shares have increased by 3,210%, D-Wave Quantum's shares by 1,970%, and IonQ's shares by 1,290% over the past three years [5]. - Rigetti specializes in superconducting quantum computing with plans to launch 1,000-qubit systems by the end of 2027, while D-Wave focuses on quantum annealing with 5,000 qubits in its most advanced systems, and IonQ specializes in trapped-ion quantum computing with a goal of 20,000 qubits by 2028 [6]. Group 3: Valuation Metrics - Rigetti shares trade at 928 times sales, D-Wave at 362 times sales, and IonQ at 150 times sales, with projected revenue growth rates of 124%, 69%, and 84% annually through 2027, respectively [13]. - The current valuations of these quantum computing stocks are significantly higher than the most expensive stocks in the S&P 500, which trade at an average of 55 times sales, indicating that Rigetti would need to fall 94%, D-Wave 84%, and IonQ 63% to align with those valuations [11].

Group 1 - D-Wave Quantum Inc. (NYSE:QBTS) is recognized as a strong buy stock, with an Outperform rating initiated by Wedbush on December 17 and a price target of $35, indicating potential for significant growth due to commercial adoption of its technology [1] - The company has received a bullish recommendation from Wedbush, highlighting its real-world advantages in optimization and a large addressable market across various industries, which enhances its investment appeal [2] - Jefferies initiated coverage on December 16 with a Buy rating and a price target of $45, noting that D-Wave Quantum is well-positioned to benefit from positive ecosystem trends and increased usage of quantum architectures [3] Group 2 - D-Wave Quantum Inc. specializes in the development and delivery of quantum computing systems, services, and software, providing access to its systems through cloud-based quantum computing as a service [4]