D-Wave: Recent Updates Propel Shares Off 2025 Lows

Key Points

• D-Wave is one of the main publicly traded players in the quantum computing space.
• Comments from tech experts around quantum computing have been both positive and negative. Recent D-Wave press releases have put shares up strongly since Jan. 13.
• With quantum computing in its early stages of adoption, small stocks in this space will continue on their rollercoaster ride. Still, Wall Street analysts see upside in D-Wave.

There has been a lot of news surrounding quantum computing stocks over the past two weeks. That is especially true for D-Wave Quantum NYSE: QBTS. So far in 2025, shares are down over 24% as of mid-day trading on Jan. 24. Shares hit their low on the year on Jan. 13 after comments made by Meta Platforms NASDAQ: META Chief Executive Officer (CEO) Mark Zuckerberg. Zuckerberg said quantum computing is "still quite a ways off from being a very useful paradigm." D-Wave shares fell 33% afterward.

Since then, further news has come out, resulting in shares rallying over 66% from that low. Below, I’ll break down these recent developments. I’ll add further analysis surrounding D-Wave and the quantum industry.

D-Wave: Important Announcements Send Shares Flying

On Jan. 15, a big piece of news came out that benefited D-Wave shareholders. The company announced a partnership with Carahsoft Technology. Carahsoft is a Trusted Government IT Solutions Provider. Through this partnership, D-Wave can sell its technology through Carahsoft to the U.S. government. The partnership could greatly benefit D-Wave. It makes it much easier for the company to sell its tech to the government. Tech companies like Palantir show that a strong relationship with the U.S. government can lead to massive growth.

D-Wave also recently announced its new Leap Quantum LaunchPad Program. It gives qualified users three months of free access to the company's cloud-based quantum computing service. This is an interesting move. It is somewhat of a self-admittance that interest in purchasing its quantum services is still nascent. So, the company is offering the service for free. However, it also is a great way for D-Wave to expose potential customers to what its technology can do without financial risk. It will likely have a short-term impact on revenue, but the long-term benefits have the potential to greatly outweigh this.

Quantum stocks additionally popped at the announcement of the Stargate Project. President Donald Trump praised the news that several firms will invest up to $500 billion in AI development over the next four years. The announcement doesn't mention quantum computing. However, many believe it will be greatly intertwined with AI in the long run. Theoretically, quantum computing could offer much faster computing speeds while using significantly less energy when processing AI workloads. Energy availability is a key bottleneck in AI. Trump's support for AI could spark government interest in D-Wave’s tech, especially given its partnership with Carahsoft.

Adding Context Around D-Wave and the Quantum Industry

Investors should know that competition in the quantum space is much broader than just publicly traded companies. Venture capital funding to private quantum companies hit $1.5 billion in 2024 through November. In Apr. 2024, PsiQuantum reportedly raised $620 million. After D-Wave recently issued more shares, it says it now has a cash balance of around $320 million.

Given these figures, it is entirely possible PsiQuantum has significantly more cash with which to invest than D-Wave. Investors should look at companies in emerging industries that go public with caution. It can signal that top venture investors weren't convinced enough to invest, forcing firms to go to public markets for capital. I am not saying this is the case with D-Wave, but it is a market dynamic to be aware of.

Final Thoughts

Most agree that quantum computing is still years away from useful application. NVIDIA NASDAQ: NVDA CEO Jensen Huang said it could take 15 to 30 years until quantum computers are “very useful." D-Wave CEO Alan Baratz refuted those comments, stating that companies are using the firm's quantum tech now. Indeed, the firm recently announced it had completed the first-ever purchase of its D-Wave Advantage annealing quantum computer. Additionally, its bookings in fiscal 2024 were up 120%.

Both parties have their own short-term interests. So, their comments are of little help in finding the truth. At this point, the proof is in the pudding when looking at the revenue for companies like D-Wave. It has generated under $10 million in revenue over the past 12 months, despite having a market capitalization of around $2 billion. This revenue indicates that customers are paying D-Wave for its technology, but it is far from achieving mass adoption.

Quantum stocks will stay volatile. Tech experts' comments and announcements will drive their trading. Due to quantum's early stage and these firms' low revenues, it's hard to say if they are truly undervalued. However, Wall Street analysts still see significant upside in D-Wave. The average of price targets released in January implies upside of around 30%.