D-Wave Rises on Advantage2 Launch, Solid Roadmap: More Upside Ahead?

D-Wave Quantum QBTS is steadily advancing its technology and expanding its applications. In the second quarter of 2025, the company released its Advantage2 system, its latest version of an annealing quantum computer. Advantage2 has longer coherence times, a higher energy scale and better qubit connections than the previous system. Using this system, D-Wave demonstrated quantum supremacy by solving a real-world materials simulation problem that classical computers cannot handle.

To scale further, D-Wave is working toward building systems with 100,000 qubits. It is developing multichip designs and advanced cryogenic packaging, which helps keep the chips cold and maintain quantum performance. The company is collaborating with NASA’s Jet Propulsion Laboratory to create superconducting interconnects between chips, which will support both annealing and gate-model quantum systems. Future Advantage3 prototypes will benefit from these manufacturing advances.

D-Wave is also focused on quantum AI. It introduced a developer toolkit that works with PyTorch and allows hybrid quantum-classical machine learning applications. Using this toolkit, customers like Japan Tobacco and Triumph are testing AI applications, including simple image generation. The company is also exploring more advanced AI models, such as transformers and diffusion models, for future use.

On the commercial side, D-Wave is deploying Advantage2 systems on-premises at institutions like Julich Supercomputing Center and soon at Yonsei University in South Korea. Its Leap Quantum LaunchPad program is helping more than 1,300 businesses, governments and universities test quantum solutions in real-world problems.

With $819 million in cash, D-Wave is investing in R&D, wafer fabrication, superconducting control and quantum AI, while exploring strategic acquisitions. The company’s roadmap focuses on scaling both annealing and gate-model systems as well as building practical hybrid quantum applications that solve real-world problems.

Three Months Price Performance

What Other Pureplay Quantum Computing Rivals Are Doing?

IonQ IONQ: The company is advancing in quantum AI through its gate-based architecture, focusing on hybrid AI model training and partnerships with cloud providers. IonQ recently completed the acquisitions of Lightsynq and Capella, as well as the $1.075 billion acquisition of Oxford Ionics, expanding its quantum computing and networking roadmap with ion-trap-on-chip innovation, photonic interconnects and space-based QKD.

Rigetti Computing RGTI: Rigetti launched its 36-qubit Cepheus-1-36Q on Aug. 14, 2025, with a 99.5% two-qubit fidelity. Accessible via Quantum Cloud Services, a 100+ qubit system is planned by year end.

Average Target Price for QBTS Suggests Limited Upside Potential

Based on short-term price targets offered by 10 analysts, D-Wave Quantum’s average price target represents a decline of 21.13% from the last closing price of $26.88.

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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