D-Wave Quantum Inc. (QBTS): A Bull Case Theory

We came across a bullish thesis on D-Wave Quantum Inc. on X.com by crowntradingllc. In this article, we will summarize the bulls’ thesis on QBTS. D-Wave Quantum Inc.'s share was trading at $18.30 as of August 5^th.

Quantum computing company D-Wave ($QBTS) is gaining attention for its development of room-temperature photonic quantum processing units (QPUs), which differentiate it from traditional quantum systems that rely on superconducting circuits. This approach offers several advantages: faster deployment, lower costs, and easier integration with existing AI models, making it highly relevant for accelerating AI workloads. In 2024, the company executed a strategic pivot from being a general quantum software provider to a hardware-first business model focused on three core areas: quantum AI acceleration, quantum sensing for applications in biotechnology, defense, and space, and building an end-to-end quantum platform for both enterprise and government clients.

This shift positions QBTS at the intersection of quantum computing and artificial intelligence, two transformative technologies with significant long-term potential. However, the opportunity comes with substantial risks. The company’s ability to secure meaningful contracts will determine its trajectory; success could result in significant upside, while failure would increase the likelihood of dilution and financial strain, given its limited revenue base.

QBTS remains a speculative play, attracting strong interest among quantum-focused investors who view it as a high-risk, high-reward bet. With its innovative photonic architecture and emphasis on practical quantum-AI integration, the company could emerge as a leader in next-generation computing if execution aligns with expectations, but the path forward will be highly volatile.

Previously we covered a bullish thesis on IonQ, Inc. (IONQ) by Maestroszq in October 2024, which highlighted the company’s leadership in quantum computing, strong patent portfolio, and the upcoming Forte Enterprise system launch. The company’s stock price has appreciated approximately by 287% since our coverage. This is because the thesis played out with strong growth and commercialization progress. crowntradingllc shares a similar view but emphasizes D-Wave’s pivot to photonic QPUs and AI integration.

D-Wave Quantum Inc. is not on our list of the 30 Most Popular Stocks Among Hedge Funds. As per our database, 13 hedge fund portfolios held QBTS at the end of the first quarter which was 15 in the previous quarter. While we acknowledge the potential of QBTS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.