D-Wave Quantum -QBTS Surges 420% in 6 Months: Is There More Room to Run in 2025?

Quantum Computing Market Overview - IBM and Google have made significant advancements in quantum computing, with IBM launching its most advanced quantum computers and Google's Willow quantum chip demonstrating exceptional computational efficiency [1] - The global quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030, driven by increasing demand for quantum solutions [10] QBTS Performance and Market Position - QBTS shares surged 420.3% in the trailing six months, outperforming the broader Zacks Computer and Technology sector (3.7%) and Internet - Software industry (14.2%) [8] - QBTS' Quantum Computing-as-a-Service revenues grew 41% year over year, totaling $1.6 million in Q3 2024, driven by higher average revenue per customer [9] - QBTS expanded its customer base to 132 customers across commercial, government, and research sectors, with significant revenue increases from government (66%) and research (47%) customers in Q3 2024 [11] QBTS Technological Advancements - QBTS completed the calibration and benchmarking of its 4,400+ qubit Advantage2 processor, marking significant performance improvements over the Advantage system in optimization, AI, and materials science [4] - QBTS successfully completed its second SOC 2 Type 2 audit in December 2024, reaffirming its commitment to customer data security and protection [15] QBTS Partnerships and International Expansion - QBTS' partnerships with Zapata Computing Holdings, Japan Tobacco, and Staque have been major growth drivers [5] - NTT DOCOMO plans to deploy a hybrid-quantum application using D-Wave technology to optimize mobile network performance and reduce signal congestion, expanding QBTS' international footprint [10] Competitive Landscape - Rigetti Computing launched its 84-qubit Ankaa-3 quantum computing system in December 2024, featuring significant hardware enhancements and major two-qubit gate fidelity milestones, potentially challenging QBTS' market position [7] - QBTS faces growing pressure from competitors like IBM, Google, and IonQ, intensifying market pressures with advancements in quantum computing technologies [12] Financial Outlook - The Zacks Consensus Estimate for QBTS' 2025 revenues is$ 15.42 million, indicating a 76.22% year-over-year increase [17] - QBTS is trading at a forward 12-month Price/Sales ratio of 103.34X, significantly higher than the sector's 7.09X, suggesting a stretched valuation [18]