Quantum Rivalry Rises With IBM's Push: Is D-Wave Still a Buy?

Core Insights - D-Wave Quantum's shares have surged by 1359.5% over the past year, driven by increasing demand for quantum technology, an AI infrastructure boom, and strong quarterly results [1][7]. - IBM's recent announcement of the IBM Quantum Starling, a large-scale fault-tolerant quantum computer, poses a competitive threat to D-Wave Quantum, as it aims to perform 20,000 times more operations than current machines [2][3]. Long-term Tailwinds for D-Wave Quantum - D-Wave achieved quantum computational supremacy in Q1 2025, solving a materials science problem in minutes that would take a classical supercomputer nearly a million years, using its 1,200-qubit Advantage2 prototype [5][7]. - D-Wave specializes in annealing quantum computing, which is optimized for combinatorial and optimization problems, allowing for immediate deployment compared to competitors focused on gate-based models [6][13]. - The company exited Q1 2025 with a cash balance of $304.3 million, bolstered by $146.2 million from its third At-The-Market offering, positioning it as a capital-efficient player in the quantum space [7][8]. Technical Indicators - D-Wave Quantum's stock is trading above both the 50-day and 200-day moving averages, indicating a bullish trend and positive market sentiment [9]. Earnings Estimates - The Zacks Consensus Estimate indicates a 30% improvement in D-Wave's Q2 2025 earnings and a 72% improvement for the full year compared to the previous year [11][12]. Competitive Landscape - D-Wave is the only quantum computing company to demonstrate real-world quantum supremacy, distinguishing itself from competitors like IonQ and Rigetti Computing, which are still developing less mature gate-based systems [13][15]. - Despite IBM's entry into the quantum computing market, D-Wave is expected to continue capitalizing on its production-ready annealing solutions and has a long runway for growth [15].