D-Wave Quantum (QBTS) extended its rally yesterday with a 7.83% gain, closing at $15.98 after a strong day of trading. That followed fresh bullish coverage from Roth MKM and Cantor Fitzgerald, both of which see more upside ahead for the quantum computing company.
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More Tailwinds Behind an Already Flying Stock
Roth MKM five-star analyst Sujeeva De Silva reiterated a Buy rating and raised eyebrows with a price target of $18.00. De Silva has an average return of 30.4% across tech picks and maintains a 53.04% success rate, according to TipRanks data. Cantor Fitzgerald also weighed in positively, initiating coverage with an Overweight rating and a $20.00 target. The firm highlighted QBTS’s traction in real-world optimization problems, such as logistics and scheduling, and pointed to its demonstration of quantum computational supremacy as a major milestone.
Tuesday’s move adds to an already stellar 2025. QBTS is now up 90.24% year-to-date and an astounding 1,352.73% over the past 12 months. Shares traded under $1 last summer and have steadily built momentum following key commercial and technical updates. The stock’s parabolic rise has drawn interest, but also some caution. Insider sentiment has turned negative, with several executives trimming holdings, including a $731,000 sale from director Rohit Ghai last month.
The breakout comes on the back of a strong Q1. The company reported $15 million in revenue, up 509% year-over-year, driven by the sale of an Advantage2 system. Losses narrowed to $5.4 million from $17.3 million a year ago, and gross margins jumped to 93.6%. D-Wave ended the quarter with $304 million in cash and flagged new deals in automotive and manufacturing, including with Ford Otosan and Japan Tobacco (JAPAF).
QBTS’ Distinct Quantum Approach
D-Wave stands out for its use of quantum annealing, a distinct approach from gate-model systems developed by peers such as Google (GOOG)(GOOGL) and IBM (IBM). Instead of aiming for universal quantum computation, D-Wave focuses on optimization by mapping problems into physical systems of qubits. Its latest Advantage2 system uses superconducting qubits in a high-connectivity architecture and is accessible via cloud through its Leap platform. The company is also developing gate-model capabilities to serve a broader range of use cases over time.
With analyst support, positive earnings momentum, and expanding commercial use cases, QBTS continues to gain Wall Street’s attention. Whether the stock has more room to run will likely depend on its ability to translate technical milestones into sustained revenue growth.
Is D-Wave a Good Stock to Buy?
The Street’s analysts see more room for growth for D-Wave, and consider it a Strong Buy. The average stock price target for QBTS is $17.33, implying an 8.45% upside.
