Wall Street Stays Bullish on D-Wave Quantum Stock (QBTS) Despite Lofty Valuation

D-Wave Quantum Inc. (QBTS) stock has rallied by about 1,207% over the past year and by 85% so far in 2025. It boasts of being the only company in the world that is building both annealing and gate-model quantum computers. Despite the stock trading at a lofty valuation (price-to-sales multiple of 162.6x), Wall Street analysts remain bullish on D-Wave Quantum stock due to the company’s ability to capture tremendous growth opportunities in the quantum computing space.

D-Wave Quantum Is Moving on the Right Track

D-Wave Quantum impressed investors with a 509% year-over-year jump in its first-quarter revenue to $15 million. The solid top-line growth helped the company narrow its Q1 2025 loss per share compared to the prior-year quarter.

The company’s strategic deals are also gaining the Street’s attention. On Tuesday, D-Wave Quantum announced that it has signed a memorandum of understanding (MOU) with Yonsei University and Incheon Metropolitan City to accelerate the exploration, adoption, and usage of quantum computing in South Korea.

With such deals and the recent rollout of the more advanced Advantage2 system, QBTS is well-positioned to boost its revenue and grow rapidly in the quantum computing space.

Analysts Are Upbeat on D-Wave Quantum’s Growth Story

Analysts are upbeat about D-Wave Quantum stock, backed by the growing demand for its quantum computing offerings.

Reacting to the deal announced yesterday, Benchmark analyst David Williams stated that he views the MOU as a “significant strategic step that validates D-Wave’s technology on a global stage.” Moreover, the 5-star analyst believes that this collaboration presents a clear framework for the future sale and installation of QBTS’ Advantage2 quantum system. He noted that while the MOU is non-binding, it specifically mentions that the parties will work towards the acquisition of a system, reflecting a potential double-digit million-dollar revenue opportunity for D-Wave Quantum.

Williams thinks that this MOU and the deal with Germany’s Forschungszentrum Jülich reflect strengthening momentum in QBTS’s hardware sales. While the analyst acknowledges that quantum computing as a service (QCaaS) is the primary longer-term revenue driver for D-Wave Quantum, such hardware opportunities could help reduce cash burn over the near term while also providing longer-term “QCaaS revenue optionality.” Based on his optimism, Williams raised the price target for QBTS stock to $20 from $14 and reaffirmed a Buy rating.

Likewise, Roth MKM analyst Sujeeva De Silva reiterated a Buy rating on QBTS stock and increased his price target to $18 from $12, as he is optimistic about the growing commercial and artificial intelligence (AI)-related interest in the company’s offerings.

Is QBTS Stock a Good Buy?

With six unanimous Buys, Wall Street has a Strong Buy consensus rating on D-Wave Quantum stock. The average QBTS stock price target of $14.20 indicates a 9% downside risk from current levels, following the phenomenal year-to-date rally. Investors should be aware that pure-play quantum computing stocks have a high-risk/high-reward profile.

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