D-Wave Quantum Slides as Bullish Growth Story Builds

D-Wave Quantum ( (QBTS) ) has fallen by -11.27%. Read on to learn why.

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D-Wave Quantum shares fell 11.27% over the past week, a pullback that comes despite a wave of upbeat analyst coverage and accelerating commercial momentum. TD Cowen’s top-rated analyst Krish Sankar initiated coverage with a Buy rating, highlighting that D-Wave already generates real revenue from its Advantage systems and cloud-based Leap service while many quantum peers remain in the lab. Still, after a sharp run-up, some investors appear to be locking in profits amid lingering concerns over execution risks, production challenges, and intensifying competition in quantum computing.

Under the surface, the business story is improving. Analysts point to D-Wave’s shift from small proof-of-concept projects to larger commercial contracts, including a $20 million sale of an Advantage2 system to Florida Atlantic University and a $10 million, two-year Quantum Computing-as-a-Service deal with a Fortune 100 company. Forecasts now call for rapid revenue growth, with TD Cowen projecting sales climbing from about $26 million in 2025 to roughly $135 million by 2028, while other estimates see revenue reaching $70 million in 2026 and $110 million in 2027. This early traction in practical applications like scheduling and logistics underpins the bullish long-term view even as the stock retreats in the short term.

Strategically, D-Wave is also expanding beyond its core annealing technology through the acquisition of Quantum Circuits Inc., a $550 million deal aimed at speeding development of gate-based quantum processors and positioning the company for emerging AI and machine-learning workloads. Backed by roughly $840 million in cash and low debt, D-Wave has room to invest in new systems, including an early gate-based model targeted as soon as 2026 and a larger error-corrected machine by 2028. Wall Street remains broadly optimistic, with a Strong Buy consensus from 12 analysts and an average price target of $41.25, suggesting that despite the recent 11.27% slide, many see the stock’s weakness as a pause in an early-stage growth story rather than a reversal.