Analyzing Investment Prospects in Quantum Computing
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 12 2026
0mins
Should l Buy QBTS?
Source: Fool
- Massive Market Potential: McKinsey & Company projects that the quantum computing market could reach $72 billion annually by 2035, and with D-Wave Quantum's current market cap around $6.8 billion, capturing a significant market share could yield substantial returns.
- Technological Focus Advantage: D-Wave's use of quantum annealing technology allows it to specialize in solving optimization problems, giving it a competitive edge in specific applications such as weather modeling and logistics networks.
- Key Partnership Opportunity: D-Wave has signed a $10 million, two-year deal with an unnamed Fortune 100 company to explore its quantum computing capabilities, which could lead to larger collaborations and enhance its market position if successful.
- Investment Risk Advisory: While D-Wave shows potential in the quantum computing space, the intense competition from major tech companies necessitates cautious risk assessment by investors, suggesting a prudent approach to investment sizing.
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Analyst Views on QBTS
Wall Street analysts forecast QBTS stock price to rise
13 Analyst Rating
13 Buy
0 Hold
0 Sell
Strong Buy
Current: 13.700
Low
35.00
Averages
40.67
High
48.00
Current: 13.700
Low
35.00
Averages
40.67
High
48.00
About QBTS
D-Wave Quantum Inc. is a quantum computing company, which is engaged in the development and delivery of quantum computing systems, software, and services. The Company builds and delivers systems, cloud services, application development tools, and professional services to support the end-to-end quantum computing journey for enterprises and developers. The Company's products include Cloud Platform, Systems, Professional Services, and others. Under its Cloud Platform, the Leap quantum cloud service delivers immediate, real-time access to its quantum computers and hybrid solvers services. Under its Systems, the Advantage quantum system is a quantum computer designed for business. It also offers quantum applications to a range of customers, including resource scheduling, factory scheduling, industrial construction design, drug discovery, and others. It offers solutions across workforce scheduling, production scheduling, vehicle routing, resource optimization, and cargo loading.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
D-Wave Quantum Faces Challenges and Opportunities Amid Market Volatility
- Market Volatility Impact: D-Wave Quantum's stock has plummeted by about two-thirds from its high last fall, although it has risen over 35% since its IPO; the combination of high valuations and uncertainty surrounding AI has led to significant investor sell-offs, reflecting market caution towards quantum computing.
- Deteriorating Financials: The company anticipates $25 million in revenue for 2025, a 180% increase year-over-year, yet it faces a staggering net loss of $355 million, up from $144 million the previous year, indicating a need for substantial funding to remain competitive in a challenging market.
- Customer Base Expansion: D-Wave Quantum has attracted over 70 commercial clients, leveraging quantum annealing technology to address real-world issues such as portfolio optimization in finance and minimizing downtime in manufacturing, marking a successful shift from research to practical applications.
- Shareholder Dilution Risk: The number of outstanding shares increased by 27% last year, suggesting the company raised funds through stock issuance at high prices; despite having $884 million in liquidity, shareholders face a daunting price-to-sales ratio of around 180, highlighting the high risks and costs of investing in this stock.
See More
Investment Outlook in Quantum Computing Sector
- D-Wave Performance Growth: D-Wave achieved $24.6 million in sales for 2025, marking a 179% year-over-year increase, and secured over $30 million in customer bookings in January 2026, indicating enhanced market traction and potential for further revenue growth.
- Rigetti Financial Challenges: Rigetti reported $7.1 million in sales for 2025, a 34% decline, with an operating loss of $84.7 million; despite having $443.5 million in cash and short-term investments, the company faces significant profitability pressures.
- Acquisition Strategy Impact: D-Wave's acquisition of Quantum Circuits in 2026 strengthens its competitive position in quantum computing, particularly in solving optimization problems, thereby filling a critical gap in its product offerings and enhancing market competitiveness.
- Investment Choice Analysis: Between D-Wave and Rigetti, D-Wave is viewed as the superior investment due to its higher cash reserves and growing revenue, along with a lower price-to-sales ratio, reflecting stronger investor confidence in its future growth prospects.
See More
D-Wave and Rigetti Quantum Stocks Drop Double Digits Year-to-Date
- Poor Market Performance: D-Wave and Rigetti stocks have dropped 47% and 40% year-to-date, respectively, indicating a decline in investor confidence in the quantum computing sector, particularly following Wall Street's shift towards lower-valued stocks in the 'great rotation' of 2026.
- Financial Strain: Rigetti reported $7.1 million in sales for 2025, a 34% decline year-over-year, with an operating loss of $84.7 million; despite holding $443.5 million in cash and short-term investments, the company faces significant profitability challenges.
- Rapid Growth for D-Wave: D-Wave's customer bookings exceeded $30 million in January 2026, a substantial increase from $13.4 million in Q4 2025, indicating accelerating market demand, although it recorded an operating loss of $100.4 million in 2025.
- Acquisition Strategy Enhances Competitiveness: D-Wave's acquisition of Quantum Circuits in 2026 fills a gap in its offerings related to gate-model technology, which is expected to strengthen its position in solving optimization problems, thereby enhancing its competitive edge.
See More
D-Wave Quantum Stock Sell-Off Raises Concerns
- Stock Price Plunge: D-Wave Quantum's stock has fallen by about two-thirds from its high last fall, and despite a 35% increase since its IPO, high valuations and market uncertainty have led to significant sell-offs, reflecting investor concerns about the quantum computing sector.
- Revenue Growth vs. Losses: The company is projected to generate $25 million in revenue by 2025, marking a 180% increase year-over-year; however, it is also expected to incur a net loss of $355 million, up from $144 million last year, indicating financial strain amid fierce competition.
- Intensifying Market Competition: Competing against tech giants like Alphabet and IBM, D-Wave Quantum's use of quantum annealing to solve real-world problems is overshadowed by its astronomical price-to-sales ratio of around 180, compelling investors to pay a hefty premium and increasing investment risks.
- Uncertain Profitability Outlook: While D-Wave Quantum has made strides in practical applications of quantum computing, analysts generally believe it may take years to achieve profitability, prompting investors to reassess its investment value, especially in light of well-funded competitors in the market.
See More
Analysis of Quantum Computing Investment Prospects
- Technology Comparison: Rigetti Computing utilizes superconducting technology by cooling particles to near absolute zero for computing, while D-Wave Quantum employs quantum annealing, focusing on searching multiple solutions simultaneously; although the latter has limited adaptability for general computing, it excels in specific applications.
- Financial Health Assessment: D-Wave Quantum shows healthier financials with announced early-stage system sales, including a $20 million contract with Florida Atlantic University and a €10 million ($11.5 million) booking in Italy, whereas Rigetti's flagship sale was only $8.4 million, indicating a declining business trend.
- Importance of Partnerships: Rigetti was eliminated in the DARPA contract bid, indicating its technology is lagging behind competitors, while D-Wave has established partnerships with several manufacturing companies, enhancing its market competitiveness and positioning for future growth.
- Investment Recommendation: Despite D-Wave Quantum outperforming Rigetti in various aspects with a final score of 2-1, its strategy of specializing in specific areas is deemed wise, making it the more attractive stock to invest in at this time.
See More
D-Wave Quantum's Market Advantage in Quantum Computing
- Technological Differentiation: D-Wave Quantum utilizes quantum annealing technology, focusing on simultaneously searching for multiple solutions, which, while not suitable for general-purpose computing, shows unique advantages in areas like AI training and logistics networks, thereby securing a leading position in specific markets.
- Financial Performance Comparison: D-Wave Quantum recently announced several early-stage system sales, including a $20 million system to Florida Atlantic University, while Rigetti Computing's flagship system sale was only $8.4 million, highlighting D-Wave's clear advantage in financial growth.
- Partnerships: D-Wave Quantum has established early partnerships with several companies in the manufacturing sector, whereas Rigetti failed to secure the crucial DARPA contract, indicating its technology is lagging behind competitors and potentially affecting its future market position.
- Market Outlook: Although quantum computing may take years to become mainstream, D-Wave Quantum demonstrates stronger market potential by focusing on specific areas and building robust partnerships, attracting investor interest in its long-term growth opportunities.
See More
D-Wave Quantum Faces Challenges and Opportunities Amid Market Volatility
- Market Volatility Impact: D-Wave Quantum's stock has plummeted by about two-thirds from its high last fall, although it has risen over 35% since its IPO; the combination of high valuations and uncertainty surrounding AI has led to significant investor sell-offs, reflecting market caution towards quantum computing.
- Deteriorating Financials: The company anticipates $25 million in revenue for 2025, a 180% increase year-over-year, yet it faces a staggering net loss of $355 million, up from $144 million the previous year, indicating a need for substantial funding to remain competitive in a challenging market.
- Customer Base Expansion: D-Wave Quantum has attracted over 70 commercial clients, leveraging quantum annealing technology to address real-world issues such as portfolio optimization in finance and minimizing downtime in manufacturing, marking a successful shift from research to practical applications.
- Shareholder Dilution Risk: The number of outstanding shares increased by 27% last year, suggesting the company raised funds through stock issuance at high prices; despite having $884 million in liquidity, shareholders face a daunting price-to-sales ratio of around 180, highlighting the high risks and costs of investing in this stock.
See More
Investment Outlook in Quantum Computing Sector
- D-Wave Performance Growth: D-Wave achieved $24.6 million in sales for 2025, marking a 179% year-over-year increase, and secured over $30 million in customer bookings in January 2026, indicating enhanced market traction and potential for further revenue growth.
- Rigetti Financial Challenges: Rigetti reported $7.1 million in sales for 2025, a 34% decline, with an operating loss of $84.7 million; despite having $443.5 million in cash and short-term investments, the company faces significant profitability pressures.
- Acquisition Strategy Impact: D-Wave's acquisition of Quantum Circuits in 2026 strengthens its competitive position in quantum computing, particularly in solving optimization problems, thereby filling a critical gap in its product offerings and enhancing market competitiveness.
- Investment Choice Analysis: Between D-Wave and Rigetti, D-Wave is viewed as the superior investment due to its higher cash reserves and growing revenue, along with a lower price-to-sales ratio, reflecting stronger investor confidence in its future growth prospects.
See More
D-Wave and Rigetti Quantum Stocks Drop Double Digits Year-to-Date
- Poor Market Performance: D-Wave and Rigetti stocks have dropped 47% and 40% year-to-date, respectively, indicating a decline in investor confidence in the quantum computing sector, particularly following Wall Street's shift towards lower-valued stocks in the 'great rotation' of 2026.
- Financial Strain: Rigetti reported $7.1 million in sales for 2025, a 34% decline year-over-year, with an operating loss of $84.7 million; despite holding $443.5 million in cash and short-term investments, the company faces significant profitability challenges.
- Rapid Growth for D-Wave: D-Wave's customer bookings exceeded $30 million in January 2026, a substantial increase from $13.4 million in Q4 2025, indicating accelerating market demand, although it recorded an operating loss of $100.4 million in 2025.
- Acquisition Strategy Enhances Competitiveness: D-Wave's acquisition of Quantum Circuits in 2026 fills a gap in its offerings related to gate-model technology, which is expected to strengthen its position in solving optimization problems, thereby enhancing its competitive edge.
See More
D-Wave Quantum Stock Sell-Off Raises Concerns
- Stock Price Plunge: D-Wave Quantum's stock has fallen by about two-thirds from its high last fall, and despite a 35% increase since its IPO, high valuations and market uncertainty have led to significant sell-offs, reflecting investor concerns about the quantum computing sector.
- Revenue Growth vs. Losses: The company is projected to generate $25 million in revenue by 2025, marking a 180% increase year-over-year; however, it is also expected to incur a net loss of $355 million, up from $144 million last year, indicating financial strain amid fierce competition.
- Intensifying Market Competition: Competing against tech giants like Alphabet and IBM, D-Wave Quantum's use of quantum annealing to solve real-world problems is overshadowed by its astronomical price-to-sales ratio of around 180, compelling investors to pay a hefty premium and increasing investment risks.
- Uncertain Profitability Outlook: While D-Wave Quantum has made strides in practical applications of quantum computing, analysts generally believe it may take years to achieve profitability, prompting investors to reassess its investment value, especially in light of well-funded competitors in the market.
See More
Analysis of Quantum Computing Investment Prospects
- Technology Comparison: Rigetti Computing utilizes superconducting technology by cooling particles to near absolute zero for computing, while D-Wave Quantum employs quantum annealing, focusing on searching multiple solutions simultaneously; although the latter has limited adaptability for general computing, it excels in specific applications.
- Financial Health Assessment: D-Wave Quantum shows healthier financials with announced early-stage system sales, including a $20 million contract with Florida Atlantic University and a €10 million ($11.5 million) booking in Italy, whereas Rigetti's flagship sale was only $8.4 million, indicating a declining business trend.
- Importance of Partnerships: Rigetti was eliminated in the DARPA contract bid, indicating its technology is lagging behind competitors, while D-Wave has established partnerships with several manufacturing companies, enhancing its market competitiveness and positioning for future growth.
- Investment Recommendation: Despite D-Wave Quantum outperforming Rigetti in various aspects with a final score of 2-1, its strategy of specializing in specific areas is deemed wise, making it the more attractive stock to invest in at this time.
See More
D-Wave Quantum's Market Advantage in Quantum Computing
- Technological Differentiation: D-Wave Quantum utilizes quantum annealing technology, focusing on simultaneously searching for multiple solutions, which, while not suitable for general-purpose computing, shows unique advantages in areas like AI training and logistics networks, thereby securing a leading position in specific markets.
- Financial Performance Comparison: D-Wave Quantum recently announced several early-stage system sales, including a $20 million system to Florida Atlantic University, while Rigetti Computing's flagship system sale was only $8.4 million, highlighting D-Wave's clear advantage in financial growth.
- Partnerships: D-Wave Quantum has established early partnerships with several companies in the manufacturing sector, whereas Rigetti failed to secure the crucial DARPA contract, indicating its technology is lagging behind competitors and potentially affecting its future market position.
- Market Outlook: Although quantum computing may take years to become mainstream, D-Wave Quantum demonstrates stronger market potential by focusing on specific areas and building robust partnerships, attracting investor interest in its long-term growth opportunities.
See More
