D-Wave Quantum Slumps As Lofty Hype Meets Reality

D-Wave Quantum ( (QBTS) ) has fallen by -10.65%. Read on to learn why.

D-Wave Quantum shares fell 10.65% over the past week as investors reassessed lofty valuations across high-flying AI and quantum computing names. Despite a 272% gain over the past year, the stock has come under pressure amid concerns that it is trading at more than 100 times next-twelve-months sales, while the company continues to post steep losses — last quarter’s GAAP net loss was about $140 million on revenue of just $3.74 million, albeit up from $1.87 million a year earlier. Negative insider sentiment, with an uptick in share sales by company insiders, has added to the cautious tone.

The pullback also reflects growing competitive and sector-wide headwinds. News that Canadian rival Xanadu Quantum Technologies is moving ahead with U.S. listing plans has raised questions about intensifying competition in the quantum space. Options trading in D-Wave Quantum has shown mixed sentiment, with elevated demand for downside protection suggesting some traders are positioning for further volatility, even as implied volatility has eased into the lower end of its one-year range.

Yet, Wall Street analysts remain largely upbeat on D-Wave Quantum’s long-term story, helping to cushion the decline. Mizuho’s Vijay Rakesh reiterated a Buy rating with a $46 price target, while Canaccord Genuity’s Kingsley Crane recently lifted his target to $43, citing strong momentum from the Qubits 2026 conference, the company’s leadership in quantum annealing, and early interest in its gate-model technology. Recent commercial wins, including a $20 million Advantage2 system sale to Florida Atlantic University and a $10 million QCaaS contract with a Fortune 100 customer, underpin a Strong Buy consensus and an average price target around $40, leaving plenty of upside if the company can grow into its rich valuation.