Down 38%, Should You Buy the Dip on D-Wave Quantum?

Core Insights - D-Wave Quantum has seen a significant increase in its stock price, rising approximately 1,600% over the past three years, driven by growing interest in quantum computing technology [1] - However, the stock has experienced a decline of about 38% over the last three months, raising questions among investors about the timing for potential investment [2] Group 1: Industry Outlook - Quantum computing is considered a transformative technology, with consulting firm McKinsey projecting its market size to reach $100 billion by 2035, indicating strong future growth potential [4] - The convergence of quantum computing and artificial intelligence (AI) is anticipated to create a significant tech megatrend in the coming years, further attracting investor interest [4] Group 2: Company Performance - D-Wave's revenue doubled in the third quarter of 2025, signaling positive growth, especially as other quantum computing firms struggle to increase their revenue [5] - The company has substantial cash reserves of $836 million, the highest in its history, which will support ongoing operations and research investments [6] - D-Wave's operating expenses were just over $30 million in the third quarter, allowing it to maintain operations for an extended period [6] - The acquisition of Quantum Circuits for $550 million is expected to accelerate D-Wave's development of commercially viable products [6] Group 3: Investment Considerations - Despite revenue growth, D-Wave's sales remain relatively small at $3.7 million in the third quarter, which may be a concern for potential investors [7]