QBTS Stock Up 47% in a Month: More Upside Ahead With Advantage2?

D-Wave Quantum QBTS, as a pure play quantum computing player, is focusing on annealing systems, while most of its competitors pursue gate-model approaches. Its latest system, Advantage2, launched in May 2025, is a commercial-grade quantum computer designed for real-world use. It improves significantly over the earlier Advantage system with longer coherence times, higher energy scale and expanded qubit connectivity, enabling customers to solve larger and more complex optimization problems.

The company emphasizes the importance of annealing, citing research that shows its advantages in solving optimization problems where gate-model systems are less effective. These include practical applications such as workforce scheduling, logistics, resource allocation and AI workflows. At the same time, D-Wave is also advancing gate-model development, recognizing that both approaches will be needed to address different categories of problems.

Commercial traction is a major differentiator. D-Wave has signed customers across industries, from Nikon, Sharp and GE Vernova to research institutions like the University of Oxford and the U.K.’s National Quantum Computing Center. The Julich Supercomputing Center’s purchase of an Advantage2 unit highlights growing demand for on-premises systems. Meanwhile, its Leap Quantum LaunchPad program has attracted more than 1,300 applications in just six months, expanding early adoption.

Unlike peers such as IonQ IONQ and Rigetti RGTI, which are largely focused on gate-model platforms, D-Wave generates revenues from both system sales and cloud-based subscriptions. This commercial focus, combined with strong cash reserves, positions the company as a practical leader in applying quantum to enterprise challenges. D-Wave’s distinct path makes it a central player in the evolving quantum landscape.

Competitive Landscape at a Glance

IonQ: It is expanding beyond core quantum hardware through acquisitions and partnerships. IonQ agreed to acquire Oxford Ionics in a $1.075 billion stock deal and Vector Atomic, a specialist in quantum sensors for positioning and navigation. These moves broaden IonQ’s reach into sensing, networking and security. The company also signed a memorandum of understanding (MOU) with the U.S. Department of Energy to explore quantum-secure satellite communications, strengthening its role in quantum infrastructure.

Rigetti: The company is advancing superconducting gate-model quantum computing with the launch of its 36-qubit multi-chip system (Cepheus-1-36Q), featuring four chiplets and improved modular design. The system achieved a median two-qubit gate fidelity of 99.5%, doubling error-rate performance over prior versions. On the financial side, Rigetti raised $350 million through an equity offering, ending the quarter with strong cash reserves and no debt. The company also partnered with India’s Centre for Development of Advanced Computing to co-develop hybrid quantum systems, marking a step toward global collaboration.

Over the past 30 days, shares of D-Wave have gained 47.2%.

One Month QBTS Share Performance

Average Target Price for QBTS Suggests Near-Term Upside

Based on short-term price targets offered by 10 analysts, D-Wave Quantum’s average price target represents an increase of 11.7% from the last closing price of $18.98.

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

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

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