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Valued at a market capitalization of $1.56 billion, D-Wave Quantum (QBTS) is a quantum computing technology company that offers a suite of quantum systems, software, and services. Its flagship product, the Advantage quantum computer, and its cloud-based Leap platform provide real-time access to quantum computing capabilities.
Through services like D-Wave Launch and the Ocean software development kit, the company helps enterprises integrate quantum solutions into their operations. D-Wave’s technology should help provide practical applications across diverse sectors, including artificial intelligence, drug discovery, financial modeling, and logistics, making it a top investment choice for investors with a high-risk appetite.
D-Wave stock went public in August 2022 and currently trades 53% below its all-time high of $11.41. While the quantum computing stock has trailed the broader market in the year to date, it gained an impressive 850% in 2024. Is D-Wave stock a buy, sell, or hold at current valuations?
D-Wave Partners With Carahsoft
D-Wave Quantum has partnered with Carahsoft Technology to expand its quantum computing solutions across the U.S. public sector. Under the agreement, Carahsoft will act as D-Wave’s Master Government Aggregator. The deal will make quantum computing technology accessible to government agencies through various federal procurement contracts.
The partnership aims to accelerate government adoption of quantum computing by providing access to D-Wave’s annealing quantum systems, software, and services. Government agencies can leverage these technologies for critical national defense, intelligence, emergency management, and infrastructure optimization applications.
Through Carahsoft’s reseller network, public-sector organizations will gain access to D-Wave’s Advantage quantum computing systems via the Leap quantum cloud service. The collaboration also includes workforce training programs and specialized support from D-Wave’s professional services team.
D-Wave Doubles Bookings in 2024
D-Wave Quantum ended 2024 with bookings of over $23 million, a 120% year-over-year rise. It achieved a significant milestone in 2024 with the first-ever on-premise sale of the D-Wave Advantage quantum computing system, which features over 5,000 qubits and 15-way connectivity.
D-Wave emphasized that its bookings in the fourth quarter touched $18 million, up from $3 million in the year-ago period. It attributed strong bookings to the growing market recognition of quantum computing’s practical applications, for research centers, academic institutions, and businesses.
Earlier this month, Nvidia (NVDA) CEO Jensen Huang raised questions about the commercial viability of quantum computers, dragging the share prices of D-Wave and its peers significantly lower. However, D-Wave CEO Alan Baratz explained that while Huang’s assessment might apply to gate model quantum computers, it doesn’t apply to D-Wave’s annealing quantum technology, which is already solving real-world problems.
For example, D-Wave’s quantum systems can process certain materials simulation problems in minutes that would take millions of years on traditional supercomputers. It currently serves over 100 organizations and focuses on optimization problems across industries. Baratz also expressed openness to potential collaboration between quantum processing units (QPUs) and Nvidia’s GPUs.
What Is the Target Price for QBTS Stock?
Analysts expect D-Wave sales to rise from $8.76 million in 2024 to $14.8 million in 2025 and $30 million in 2026. With a net loss of roughly $58 million in the first nine months of 2024, D-Wave remains a high-risk investment. Another reason for caution is that shares trade at 106.45x sales.
Out of the seven analysts tracking QBTS stock, six recommend “Strong Buy” and one recommends “Moderate Buy.” The average target price for QBTS stock is $5.82, which is similar to the current trading price.
