D-Wave Quantum (QBTS) Stock Soars Amid Quantum Computing Momentum
D-Wave Quantum (QBTS), a prominent firm in the quantum computing sector, is witnessing a substantial surge in its stock price, fueled by the escalating demand for quantum computing solutions. This surge is occurring alongside broader positive trends in the quantum computing market, with analysts raising price targets on other key players like IonQ and Rigetti Computing.
Advantage2 System and Technical Advancements
In May, D-Wave unveiled its sixth-generation quantum system, the Advantage2. Boasting over 4,400 qubits, this system is engineered to tackle intricate computational challenges that are beyond the capabilities of traditional computing systems. With a diverse range of scientific and industrial applications, the Advantage2 is recognized as the most powerful quantum computer the company has launched to date. This technical advancement has contributed significantly to the increased investor interest.
D-Wave isn't stopping there; the company has unveiled plans to scale up to 100,000+ qubits in future generations, while also pursuing the development of gate-model quantum computing capabilities.
Analyst Ratings and Market Performance
The developments have made QBTS stock increasingly attractive to investors. B. Riley Securities has maintained a "Buy" rating on D-Wave Quantum’s shares, while raising the price target from $22 to $33, a new Street-high. This price target suggests a potential upside of 28.6% from current levels. B. Riley analysts highlighted the Quantum World Congress global event, emphasizing the industry’s potential in commercial operations.
QBTS stock has experienced remarkable growth, skyrocketing approximately 2,874% over the past 52 weeks and 232% year-to-date (YTD). The stock reached a 52-week high of $29.18 on Sept. 24. D-Wave’s Advantage2 quantum computer seems to have provided a new boost, with the stock up 86% over the past three months.
Company Overview and Market Position
D-Wave Quantum is recognized as a leader in quantum computing, offering advanced hardware, software, and services for solving practical problems across logistics, finance, drug discovery, and other sectors. The company is currently the only one providing both annealing and gate-model quantum systems, enabling organizations to achieve unique computational advantages. D-Wave is headquartered in Palo Alto, California, with an engineering hub in Burnaby, British Columbia.
D-Wave supports over 100 clients through its cloud services and collaborative industry approach, driving progress across academic and business sectors. The company's market capitalization stands at $8.78 billion. However, it is essential to acknowledge that due to recent developments there is also a high risk of shareholder investigation.
Quantum Computing Sector Overview
The broader quantum computing sector is exhibiting signs of robust growth, projected to reach $4 billion by 2030, according to analysts at BofA Securities. This growth is driven by technological advancements and increasing commercial applications. The sector is also experiencing bullish coverage from analysts at B. Riley Securities, who cite faster-than-anticipated technological progress and commercial achievements.
Despite the positive momentum, the sector remains volatile and subject to market fluctuations. While some quantum stocks experienced pullbacks, others like Rigetti Computing (RGTI) and IonQ (IONQ) maintained upward trajectories. Some firms may have profited from recent successes and reduced their holdings. Investors should remain cautious with this in mind.
Key Facts and Recent Developments
- Stock Rally: D-Wave Quantum Inc. (NYSE: QBTS) shares have surged roughly 170% year-to-date and over 2,000% in the past year, hitting an all-time high around $27.
- Recent Price Movements: On Sept. 19, 2025, QBTS closed at $26.88 after an 11.9% jump, trading around $26 on Sept 23.
- Fed & Sector Catalysts: Macro tailwinds, including the Federal Reserve’s interest rate cut, and quantum computing breakthroughs have ignited the rally.
- Mixed Analyst Signals: Wall Street is divided on QBTS, with B. Riley Securities hiking its price target to $33, while the consensus target is ~$20–$22.
- Q2 Financial Highlights: Latest earnings (Q2 2025) showed revenue of $3.1 million (up ~42% YoY), beating expectations.
- Cash War Chest: D-Wave’s cash balance hit a record $819 million as of June 30, 2025.
- Quantum Tech Advances: In 2025, D-Wave launched “Advantage2,” its 6th-generation quantum annealer.
- Quantum-AI Synergy: D-Wave introduced hybrid quantum AI tools.
- Commercial Traction: D-Wave touts the largest customer base in quantum computing with 1,300+ organizations using its cloud “Leap” platform.
- Leadership & Governance: The company’s leadership remains steady under CEO Dr. Alan Baratz. In September 2025, D-Wave added a Chief Information Security Officer (Stan Black).
Other Quantum Stocks in Focus
- Rigetti Computing (RGTI): B. Riley analysts raised the price target from $19 to $35 while maintaining a Buy rating. Shares were up nearly 13% for the week.
- IonQ (IONQ): Announced successful demonstration of frequency conversion of photons, a major advancement in its long-term vision for the quantum internet. B. Riley analysts raised their 12-month price target on IONQ to a new high of $100.
- Quantum Computing, Inc. (QUBT): Closed an oversubscribed private placement on Thursday that raised $500 million.
Financial Performance and Outlook
In Q2 2025, D-Wave reported revenue of $3.10 million, a 42% year-over-year increase. However, the company's net loss ballooned to $167.3 million, primarily due to warrant liabilities. Adjusted EBITDA loss was $20.0 M for Q2. Thanks to fundraising, D-Wave’s cash and equivalents are high, at $819 M.
CEO Dr. Alan Baratz is optimistic about the company’s performance, highlighting key milestones such as the launch of the sixth-generation quantum computer and expansion into new markets.
Technology Innovations and Partnerships
D-Wave continues to innovate with its Advantage2 system, featuring improved coherence times, higher energy scale, and increased connectivity between qubits. The company is also collaborating with NASA’s Jet Propulsion Laboratory to develop superconducting interconnects.
D-Wave also emphasizes real-world business use cases for its tech. In 2025, D-Wave expanded deployments of its systems worldwide. The South Korea initiative came via a Memorandum of Understanding with Yonsei and the city of Incheon to develop local quantum expertise and eventually host a D-Wave machine.
Market and Industry Context
D-Wave operates within the growing quantum computing industry, which is drawing intense interest from both public and private sectors. The quantum computing market is projected to grow from $3.52 billion in 2025 to approximately $20.20 billion by 2030 at a 41.8% CAGR.
D-Wave faces competition from other companies like IonQ and Rigetti Computing, as well as big tech giants such as IBM and Google, all investing heavily in quantum R&D. Some short-sellers may view this competition as grounds to short the stock. D-Wave's recent rally should be viewed with caution by investors.
Analyst Forecasts & Investor Sentiment
The average analyst price target for QBTS is around $20–21 per share, however analysts opinions appear divided. B. Riley in late September boosted their target 50% to $33, one of the highest on the Street. Analysts consider that D-Wave’s valuation is speculative and highly dependent on future potential.
Conclusion – Outlook: Promise vs. Reality
D-Wave Quantum is at a pivotal moment, riding high on investor optimism and achieving noteworthy milestones. Success will depend on the company’s ability to execute and scale its technology, stay ahead of competitors, and manage market sentiment. Investors should monitor the company’s financial performance and technological advancements closely.
As B. Riley's analyst notes, "the former frontier technology is rapidly advancing toward integrated commerciality," and D-Wave is leading that trend. However, the ultimate success depends on converting those frontiers into long-term performance.
