/Quantum%20Computing/Image%20by%20Funtap%20via%20Shutterstock.jpg)
Quantum computing stocks are currently among the hottest trends in the stock market. These stocks have been surging since last year, transforming penny stocks into double-digit performers in a short period. One of the emerging contenders is D‑Wave Quantum (QBTS), which has captured significant investor attention thanks to its pioneering quantum annealing technology that addresses complex optimization problems. With a low entry price and impressive momentum, D‑Wave positions itself as a compelling prospect in an industry still in its early stages, much like early tech giants such as Apple (AAPL) and Nvidia (NVDA).
On Feb. 5, 2025, D‑Wave announced its upcoming Qubits 2025 conference, scheduled for March 31through April 1 in Scottsdale, Arizona. Branded as “Quantum Realized,” the event promises to showcase the company’s latest breakthroughs in quantum optimization, hardware development, and the integration of quantum with artificial intelligence. Presentations from executives, customers, and industry leaders will offer insights into practical applications and future developments in quantum computing. For investors seeking to tap into the next frontier of technological innovation, D‑Wave’s Qubits 2025 conference represents a key event to mark on their calendars.
About D‑Wave Stock
Founded in 2011, D‑Wave Quantum (QBTS) is a pioneer in quantum computing, having become the world’s first company to sell commercial quantum computers. D‑Wave offers both quantum annealing systems and gate‑model computers, including its powerful 5,000-plus-qubit Advantage system, and is now expanding into gate‑based quantum computing. Its revenue comes from both direct hardware sales and cloud services via the Leap quantum platform, serving large organizations and individual users alike. Currently, the company boasts a market capitalization of just $1.6 billion.
Shares of D‑Wave have been on a spectacular run, having jumped a staggering 583% in the past six months alone. However, since the beginning of the year, the stock has been in a correction, down by 31%. This volatility is due to the inherently unstable nature of emerging markets, where rapid growth potential is often accompanied by sharp market corrections as investor sentiment adjusts to evolving expectations.
Even after the correction, QBTS stock continues to trade at premium levels, with a sales ratio of 106x, significantly higher than the industry average of 3.3x and its own historical average of 34x. These elevated multiples indicate that investors expect robust growth in quantum computing adoption in the future.
D‑Wave's Growth Trajectory and Risks
D‑Wave Quantum has firmly established its foothold in the quantum computing arena through its groundbreaking innovations. Despite fierce competition from both pure-play quantum startups and tech giants such as Alphabet (GOOG), the company is making its mark by using commercially proven quantum annealing technology to solve real-world problems. The company is recording growing business momentum, achieving $23 million in bookings in 2024, a 120% increase over 2023, and attracting customers across various domains, including metropolitan traffic management solutions and drug discovery acceleration. Additionally, D‑Wave successfully raised $175 million through a stock sale and ended 2024 with a new record cash position of $178 million.
On the flip side, D‑Wave’s relatively small R&D budget, rising only from $25 million to $34 million over two years while its share count nearly doubled, raises questions about its ability to keep innovating over the long term. Moreover, an annual cash burn of $60 million, based on 2023 figures, underscores the hefty investments required to drive technology development and market expansion.
According to predictions from analysts, the company will slightly narrow its losses in 2025 compared to 2024, while its stock could increase as much as 45%.
What Do Analysts Think About QBTS Stock?
Analysts remain upbeat on D‑Wave Quantum despite ongoing debates about the practical timeline for quantum computing. Leading the charge, B. Riley Securities has reaffirmed a “Buy” rating, raising D‑Wave’s price target from $4.50 to $9.00. This bullish sentiment is echoed by Roth MKM and Benchmark analysts, who have also set bullish target prices, signaling confidence in the company’s innovative approach and growth potential.
While concerns persist regarding the commercialization timeline, especially after Nvidia and Meta’s (META) CEOs commented that “very useful” quantum computers might be more than a decade away, analysts highlight steady progress in quantum systems and increased government and commercial interest as critical catalysts.
Adding a new twist to the story, Microsoft (MSFT) co-founder Bill Gates recently discussed quantum computing in an interview, stating, “There is the possibility that in the next three to five years, one of these techniques will achieve enough true logical qubits to solve some very tough problems. And Microsoft is a competitor in that space.” This bold statement suggests that practical quantum computing may be closer than previously expected.
Overall, Wall Street analysts remain highly optimistic, assigning a consensus “Strong Buy” rating to QBTS stock. The average 12-month price target set by the bullish group is $6.70, implying a 14% upside potential from current levels. Its Street-high price target of $9 suggests shares could gain as much as 53%.
The Bottom Line
There is no doubt that the upcoming conference promises to unveil new developments in quantum technology, sparking renewed investor interest in the company. However, investors should be cautious with quantum computing stocks due to their volatile nature, as they soar on positive news and dip when sentiment turns negative.
For example, recent news from DeepSeek significantly impacted tech stocks, with quantum companies experiencing sharper declines. These companies are not yet generating substantial real sales; traditional investors are betting solely on their future potential. Consequently, while a major positive announcement can boost shares, a single setback can quickly reverse gains. For investors willing to embrace this risk, placing a bet on D‑Wave before March 31 might be an opportunity to capture future growth.
