D-Wave Goes International With South Korea Partnership

Core Viewpoint - D-Wave Quantum Inc. faces skepticism from investors due to its limited marketability and reliance on a small customer base, despite a recent revenue of $15 million that exceeded analyst expectations [1] Group 1: Recent Developments - D-Wave announced a memorandum of understanding (MOU) with Yonsei University and Incheon Metropolitan City in South Korea, which could expand its customer base and potential sales of its Advantage2 system [2][3] - The MOU aims to advance mutual research and talent development in quantum computing, positioning Incheon as a potential quantum computing hub in the APAC region [3] Group 2: Market Reaction - Following the MOU announcement, D-Wave shares declined by over 1% in the five trading days leading to June 23, indicating investor uncertainty without concrete financial details or confirmed sales [4] - Quantum computing stocks, including D-Wave, have faced a challenging macro environment, with QBTS shares down about 19% in the last month [6] Group 3: Competitive Landscape - D-Wave has previously made international sales, including an Advantage sale in Germany, and has partnerships in Japan, indicating ongoing efforts to expand globally [5] - Other quantum firms, such as Quantum Computing Inc., have seen stock price increases due to tangible progress, highlighting D-Wave's speculative nature in comparison [7][8] Group 4: Analyst Ratings - D-Wave currently holds a Buy rating among analysts, with a 12-month stock price forecast of $13.57, indicating a potential downside of 6.18% from the current price of $14.47 [7] - Despite the excitement around D-Wave, concerns remain about its lack of production facilities for marketable chips, which could hinder its competitiveness in the evolving quantum computing landscape [8]