D-Wave Quantum or NVIDIA: Which Stock Is a Better Buy Now?

NVIDIA Corporation’s NVDA shares have risen 27.1% so far this year, mainly due to its advances in artificial intelligence (AI). Meanwhile, D-Wave Quantum Inc. QBTS has seen an even larger increase in its share price, fueled by the benefits of quantum computing over traditional computing, making it a notable contender in the tech sector. Now, let’s examine which of these two stocks might present a better investment opportunity. 

Reasons to Be Bullish on D-Wave Quantum Stock 

D-Wave Quantum’s shares have gained an impressive 141.7% year to date, following an 854% surge last year. Of course, D-Wave Quantum stock experienced volatility in early 2025 after NVIDIA CEO Jensen Huang expressed skepticism about the growth of quantum computing. However, later, when he acknowledged being wrong about the timeline of quantum computing growth, D-Wave Quantum’s stock saw a significant rally. 

On Wednesday, D-Wave Quantum’s value increased due to new reports from analysts at Canaccord and B. Riley. Both maintained a buy rating, with B. Riley raising its D-Wave Quantum price target to $22 from $20. Recently, D-Wave Quantum’s stock rose after announcing that its Advantage2 quantum computer, with over 400 qubits, is now accessible to commercial clients. 

D-Wave Quantum’s ability to sell its Advantage2 quantum computer to the Jülich Supercomputer Center in Germany helped the company post outstanding first-quarter results. Its revenues for the quarter reached $15 million, a massive 509% increase year over year. This surpassed the total sales for all of 2024, which were $8.8 million. 

D-Wave Quantum had 133 customers in the quarter, in contrast to 128 last year. These included government clients. Separately, private companies using D-Wave Quantum’s services include Lockheed Martin Corporation LMT. 

Reasons to Be Bullish on NVIDIA Stock 

NVIDIA exceeded Apple Inc. AAPL and Microsoft Corporation MSFT in terms of market capitalization, as it surged to $4 trillion in a brief period. The company's strong position in AI contributed to its recent stock price rise, and it announced $44.1 billion in revenues for the first quarter of its fiscal year, marking a 69% increase year over year. A large part of these revenues came from the data center industry, driven by increased demand from cloud service companies improving their AI systems. 

Even with the U.S. imposing restrictions on H20 chip exports to China, NVIDIA reported a net income of $18.8 billion for the quarter, up 26% from the same period last year. Nevertheless, the recent openness of U.S. officials to resume H20 sales in China could enhance NVIDIA’s results in upcoming quarters. The growing demand for NVIDIA’s next-generation Blackwell chips and CUDA software platform is expected to strengthen its financial performance and drive its stock price upward. 

Which Stock, QBTS or NVIDIA, Is the Better Investment Now? 

With Jensen Huang believing quantum computing is approaching an inflection point and D-Wave’s quantum solutions boosting its revenue and expanding its customer base, shareholders may feel encouraged to hold onto QBTS shares. 

However, new investors should exercise caution when buying D-Wave Quantum shares, as the company reported a net loss of $5.4 million in the first quarter. Quantum computing remains in its early stages, and its practical applications may take years to develop. Additionally, major players like Microsoft and Alphabet Inc. GOOGL are showing interest in the sector, and D-Wave Quantum could become a target for acquisition. 

Regarding NVIDIA, the company’s strategy of integrating quantum processing units and graphics processing units (GPUs) could facilitate a low-risk transition into quantum computing, potentially posing challenges for D-Wave Quantum.  

NVIDIA, in itself, is poised for growth, banking on demand for Blackwell chips and AI GPUs, prompting stakeholders to retain their shares. But for new investors, NVIDIA’s price-to-earnings (P/E) ratio of 40.1 times forward earnings makes it no longer a bargain, suggesting waiting before investing now. 

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Both NVIDIA and D-Wave Quantum currently have a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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