Shares of D-Wave Quantum (QBTS) were up 1.8% in pre-market trading after the company announced the formation of a new division focused on accelerating the integration of its quantum computing products and services within the U.S. government.
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Additionally, the quantum computing firm announced that experienced government and public sector business leader Jack Sears will join its executive team as VP of U.S. government solutions for the new business unit.
D-Wave is the world’s first commercial supplier of quantum computers and uniquely develops both annealing and gate-model quantum computers. Meanwhile, rival Rigetti Computing (RGTI) uses superconducting qubits and IonQ Inc. (IONQ) leverages trapped-ion technology for quantum computing.
Government’s Push for Quantum Technology
Several members of the U.S. Department of War’s leadership have called for quantum applications, designating them a critical technology focus. Secretary of the Army and Acting Chief Technology Officer of the Navy have also emphasized the importance of developing quantum applications specifically to address the logistics and transportation needs of the military service branches.
These calls highlight the strategic push to use quantum technologies to improve military operations and make logistics more efficient on and beyond the battlefield.
Sears Could Boost Government Business
In his new role, Sears will lead government sales, app development, secure product customization, and federal-compliant support.
He brings over 25 years of experience in federal defense and aerospace growth strategies, including full P&L responsibility, proposal development, pricing models, and acquisition compliance.
D-Wave Makes Inroads in the U.S. Government
D-Wave recently announced that its Advantage2 quantum computer is now operational at Davidson Technologies’ Alabama headquarters. The system will tackle critical U.S. government challenges and eventually run sensitive applications supporting national defense and aerospace missions.
Dr. Alan Baratz, CEO of D-Wave stated that the U.S. government’s growing need for powerful problem-solving tools drives the push to use quantum technologies. With Sears leading the new government-focused unit, D-Wave aims to quickly develop quantum applications to support national security, defense, and infrastructure challenges.
Is QBTS Stock a Buy, Hold, or Sell?
On TipRanks, QBTS stock has a Strong Buy consensus rating based on nine Buy ratings. The average D-Wave Quantum price target of $38.89 implies 81.6% upside potential from current levels. Year-to-date, QBTS shares have rocketed over 155%.
