D-Wave (QBTS) Jumps 25% on Advantage2 Launch and Blowout Earnings — Analysts Split on What’s Next

D-Wave Quantum (QBTS) just delivered what CEO Dr. Alan Baratz calls “arguably the most significant quarter in the company’s history,” and investors aren’t looking the other way. Shares surged over 25% in yesterday’s trading following the release of its sixth-generation Advantage2 quantum system and a robust earnings report. With momentum building fast, this might be the moment D-Wave transitions from speculative science to real-world utility.

And if you’re waiting for a “maybe later” moment to get curious about quantum computing, this isn’t it.

Advantage2: Quantum Gets Real

At the heart of the buzz is the Advantage2 quantum computer, now available to customers worldwide. This moment does have a smell of a true quantum leap forward. The system features 4,400+ qubits, a new Zephyr topology for better qubit connectivity, and massive energy efficiency, coherence, and noise reduction upgrades. Simply put, it’s built to solve problems that classical supercomputers can’t touch.

Moreover, it’s already in use. Customers like Japan Tobacco (JAPAF) and the Los Alamos National Lab are applying it to drug discovery, national security, and materials research.

Big Numbers, Big Shift

D-Wave just delivered its strongest quarter yet. Revenue jumped 507% year-over-year to $15 million, fueled by its first-ever quantum hardware sale. Gross margin hit an impressive 93.6%, and net loss narrowed to $5.4 million from $17.3 million. With over $300 million in cash, the company has room to scale aggressively.

D-Wave’s gross profit and operating expenses. Source: Main Street Data (MSD)

Beyond the impressive financial improvement, D-Wave made it to the headlines with a quantum supremacy breakthrough. With a 1,200-qubit Advantage2 prototype, it solved a materials simulation problem that would have taken classical supercomputers millions of years. This wasn’t a lab test. It was a real-world problem, solved faster than anyone thought possible.

Then came another stunner: a quantum-powered blockchain hashing system that slashes energy use by up to 1,000x. In one move, D-Wave planted its flag in quantum AI and blockchain infrastructure, two of the planet’s hottest growth sectors.

JPMorgan Exhibits Caution

Analysts are starting to take notice. Benchmark’s five-star analyst, David Williams, raised his price target from $8 to $14, calling this one of the most important quarters in the company’s history. In the meantime, Craig-Hallum Richard Shannon, another five-star analyst, reiterated his Buy position after QBTS’ quarterly results. However, in a report on quantum computing issued by JPMorgan (JPM), the bank acknowledges the company’s progression, but states that its technological approach is limited to specific problems.

JPM noted in the report, “Their newly announced Advantage2 prototype features over 1,200 qubits with 20-way connectivity, with a goal to reach 7,000 qubits in the full Advantage2 system. This prototype claims significant speedups over classical supercomputers… However, (D-Wave’s) approach is limited to specific problem types, and they face debates about the broader applicability of quantum annealing.”

The Bottom Line

Despite JPMorgan’s slight reservations, D-Wave isn’t just another moonshot stock anymore. It’s shipping products, signing customers, and solving problems that classical computers can’t. With Advantage2 officially live, a record-breaking quarter in the books, and analysts raising targets, and QBTS stock skyrocketing, the quantum race is on—and D-Wave is vying for first spot.

Is QBTS a Good Stock to Buy?

Analyst consensus signals a Strong Buy, and after last quarter’s impressive earnings call, analysts have doubled down on their bullish sentiment with the price target on the rise. The average QBTS stock price target is $13, implying a 21.50% downside.

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