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Quantum computing holds immense potential across fields like cryptography, artificial intelligence (AI), and materials science, driving advancements beyond the limits of traditional computation. Alphabet’s (GOOGL) (GOOG) Willow chip and Amazon’s (AMZN) Quantum Embark are proof that the biggest tech names see quantum as the next battleground - and the field is booming.
Amid this rapid evolution, D-Wave Quantum (QBTS) has carved out a compelling niche, specializing in annealing-based quantum computing, which makes the company stand apart from rivals focused on gate-based systems. Its approach has delivered tangible commercial applications, putting it ahead of the curve. Investors have taken notice, sending QBTS stock soaring almost 1,000% in 2024.
Wall Street is taking note, too. Last week, Piper Sandler raised QBTS’ price target by 220% following a strong earnings report, citing D-Wave’s surging bookings, expanding system sales pipeline, and strengthening service revenue growth. With momentum building and quantum adoption accelerating, let’s take a closer look at whether this rising star has staying power.
About D-Wave Quantum Stock
D-Wave Quantum (QBTS) is a trailblazer in quantum computing, pioneering both annealing and gate-model systems. Its Advantage quantum computer, Ocean software tools, and Leap cloud service bring real-time quantum access to enterprises tackling logistics, drug discovery, and finance. With D-Wave Launch guiding businesses from concept to implementation, the company is redefining computation, unlocking solutions beyond classical limits, and cementing its role at the forefront of the quantum revolution.
With over $500 million invested in its 25-year quest, D-Wave just hit a breakthrough - solving a complex real-world problem and claiming “quantum supremacy.” With a market cap of around $2.7 billion, D-Wave is shaping the quantum future, one qubit at a time.
QBTS has been on a tear, soaring over 323% over the past 52 weeks and an astonishing 837% in six months, far outpacing the S&P 500 Index’s ($SPX) gains. As the quantum race heats up, QBTS is proving it’s a force to watch.
D-Wave Reports Mixed Q4 Results
D-Wave’s Q4 earnings report on March 13 painted a picture of both progress and resilience. Although the company reported a widening net loss and an annual decline in revenue to $2.3 million, it seems Wall Street was reacting positively to its $18.3 million in bookings, up 502% year-over-year.
Financially, D-Wave fortified its position, with over $300 million in cash as of the earnings release date - nearly doubling its 2024 year-end balance of $178 million - thanks to a successful capital raise. Its 2024 non-GAAP gross margin climbed to 72.8% from 69.8% the prior year, signaling improved operational efficiency.
The company expanded its footprint with 135 customers by year-end, including 76 commercial clients, 59 research and government entities, and 28 Forbes Global 2000 companies, now accounting for 37% of its commercial base. A major breakthrough came in February when Germany’s Jülich Supercomputing Centre acquired D-Wave’s 5,000-qubit quantum system, integrating it into the JUNIQ user facility. CEO Alan Baratz called the deal a testament to D-Wave’s quantum annealing technology and a gateway to broader adoption.
Looking ahead, D-Wave expects Q1 revenue to surpass $10 million, driven by the sale of an Advantage annealing quantum computer - far exceeding analysts’ prior $2.55 million estimate.
Analysts monitoring D-Wave forecast $22.4 million in sales for 2025 but still see losses at $0.25 per share.
What Do Analysts Expect for D-Wave Stock?
D-Wave’s continued progress is keeping Wall Street bullish on QBTS stock overall. Piper Sandler’s Harsh Kumar raised D-Wave’s price target by 220% to $8 from $2.50, reaffirming an “Overweight” rating.
At the core of this optimism is D-Wave’s strategic momentum. The analyst cited the milestone sale of an Advantage quantum system to a German research institute, fueling a triple-digit annual surge in bookings. With three additional institutions in talks for system sales and growing service revenues in the March quarter, analyst Harsh sees D-Wave cementing its dominance in annealing quantum computing for the long haul.
Needham and Benchmark analysts echoed Piper Sandler’s bullish stance, reinforcing Wall Street’s confidence in QBTS. Needham’s N. Quinn Bolton reiterated a “Buy” rating and an $8.50 price target, emphasizing D-Wave’s unique positioning as the only publicly traded annealing quantum firm and highlighting the company's shift toward system sales and a strengthened balance sheet. Benchmark analysts maintained a “Buy” rating with an $8 target, citing D-Wave’s strong technological progress and growing commercial interest. With the next-gen Advantage2 system launching soon, they see expanding sales opportunities, positioning D-Wave as a key player in the evolving quantum computing landscape.
Overall, QBTS has a “Strong Buy” consensus rating. Out of the six analysts in coverage, five recommend a “Strong Buy,” and the remaining one suggests a “Moderate Buy.” The average price target of $9.25 implies just 6% upside potential from current prices.
