ZACKS·2026-01-02 13:46Core Insights - D-Wave Quantum (QBTS) is gaining significant investor interest due to its unique position in developing both annealing and gate model quantum computers, which allows it to capture the entire quantum market opportunity [1] - The company anticipates that 2025 will be a pivotal year, with key product development milestones expected to play a central role in its growth [1] Product Developments - D-Wave launched Advantage2 in May, an energy-efficient annealing quantum computer designed to solve complex problems that classical computers cannot handle, with applications in optimization, material simulation, and AI [2] - The Advantage2 system is operational at Davidson Technologies in Huntsville, AL, focusing on U.S. government mission-critical issues, particularly in national defense [2] - D-Wave has completed the fabrication of fluxonium qubit chips and superconducting control chips, working towards scalable control of gate model qubits, which could provide a competitive edge [3] - The fabrication of Advantage3 prototype chips is nearing completion, with circuit testing expected soon, focusing on innovation and scaling towards 100,000 qubits [4][8] Market Performance - Over the past 12 months, QBTS shares have increased by 172.2%, significantly outperforming the broader Internet Software industry's 6.8% rise, the Computer and Technology sector's 26.3% increase, and the S&P 500's 19% gain [7] - Currently, QBTS shares are trading at a forward price/book (P/B) ratio of 13.49X, which is below its median but above the industry average of 6.01X [9] Peer Updates - IonQ (IONQ) has extended its strategic partnership with the Korea Institute of Science and Technology Information and is set to deliver a 100-qubit IonQ Tempo quantum system [5] - Quantum Computing Inc. (QUBT) has signed an agreement to acquire Luminar Semiconductor, Inc. for $110 million, which will enhance its portfolio and support its growth [6]