Quantum Leap: D-Wave Quantum MOU called ‘significant strategic step’

Welcome to the latest edition of “Quantum Leap” where The Fly decodes news and activity in the quantum computing space. 

SOUTH KOREA MOU: D-Wave Quantum (QBTS) announced that it has signed a memorandum of understanding with Yonsei University and Incheon Metropolitan City, designed to accelerate the exploration, adoption and usage of quantum computing in South Korea. Under the terms of the MOU, the three organizations intend to work together to advance mutual research and talent development for quantum computing, provide access to D-Wave’s quantum computing technology, and collaborate on development of use cases in biotechnology, materials science and other areas. In addition, the MOU facilitates the organizations’ efforts towards the acquisition of a D-Wave Advantage system at the Yonsei University International Campus in Songdo, Yeonsu-gu, Incheon. Benchmark raised the firm’s price target on D-Wave Quantum to $20 from $14 and reiterated a Buy rating on the shares after the memorandum of understanding with South Korea’s Yonsei University and Incheon Metropolitan City. The firm views this MOU, while non-binding, as “a significant strategic step that validates D-Wave’s technology on a global stage” and, most importantly, establishes a clear framework for the future sale and installation of an Advantage 2 quantum system. The acquisition of a system represents a potential double-digit million-dollar revenue opportunity as well as “anchoring D-Wave’s ecosystem strategy in a key, tech-forward market,” the analyst told investors in a research note.

ANALYST COMMENTARY: Benchmark analyst David Williams raised the firm’s price target on D-Wave Quantum to $20 from $14 and keeps a Buy rating on the shares after D-Wave announced the signing of a memorandum of understanding with South Korea’s Yonsei University and Incheon Metropolitan City to accelerate quantum computing adoption. The firm views this MOU, while non-binding, as “a significant strategic step that validates D-Wave’s technology on a global stage” and, most importantly, establishes a clear framework for the future sale and installation of an Advantage 2 quantum system. The acquisition of a system represents a potential double-digit million-dollar revenue opportunity as well as “anchoring D-Wave’s ecosystem strategy in a key, tech-forward market,” the analyst tells investors.

On June 13, Roth Capital raised the firm’s price target on D-Wave Quantum to $18 from $12 and maintained a Buy rating on the shares. The firm believes D-Wave has gained customer market interest in recent months and in doing so is expanding its revenue potential across both hosted service and hardware sale opportunities. Roth expects both commercial and AI-related customer interest to intensify in the coming quarters.

WISESAT SPACE INVESTMENT: Sealsq (LAES) announced that its board of directors has formally approved a $10M strategic investment in WISeSat.Space AG, joining its parent company WISeKey (WKEY), to accelerate the planned deployment of a secure, quantum-ready satellite constellation. The $10M investment secures Sealsq a 9% equity stake in WISeSat, based on a pre-money valuation of $115M established through a valuation conducted by an independent expert. This milestone financing will enable WISeSat to scale up its operations and accelerate the deployment of its planned satellite constellation, as well as provide the flexibility to evaluate opportunities for expanding its access to pre-existing satellite infrastructure through strategic partnerships and investments.

POST-QUANTUM CRYPTOGRAPHY: Commvault (CVLT) announced enhancements to its post-quantum cryptography capabilities. These advancements are designed to help customers protect their long-term data from a new generation of imminent but unknown cyber threats, creating an additional layer of support, when needed. Quantum computing uses quantum mechanics to process data and solve complex problems that could take decades with classical computers. However, these advancements bring unprecedented security challenges, along with the potential for threat actors to use quantum computing to decipher and unlock traditional encryption methods. According to the Information Systems Audit and Control Association’s Quantum Computing Pulse Poll, 63% of technology and cybersecurity professionals say quantum will increase or shift cybersecurity risks and 50% believe it will present regulatory and compliance challenges. Commvault has provided support for quantum-resistant encryption standards, like CRYSTALS-Kyber, CRYSTALS-Dilithium, SPHINCS+, and FALCON, as recommended by the National Institute of Standards and Technology since August 2024. It was then that Commvault introduced a cryptographic agility framework, enabling its customers, via the Commvault Cloud platform, to address rapidly evolving threats without overhauling their systems. With this announcement, Commvault has built on that framework by adding support for Hamming Quasi-Cyclic, a new error correcting code-based algorithm designed to defend against threats like ‘harvest now, decrypt later’ where adversaries are intercepting encrypted network traffic and storing it for a later time when quantum computers are powerful enough to decrypt it. “The quantum threat isn’t theoretical,” said Bill O’Connell, Chief Security Officer at Commvault. “We were among the first cyber resilience vendors to address post-quantum computing, and by integrating new algorithms like HQC and advancing our crypto-agility framework, we are providing our customers with the tools to navigate this complex landscape with confidence. Our goal is simple and clear: as quantum computing threats emerge, we intend to help our customers keep their data protected.”