1 AI & 1 Quantum Stock Beat NVIDIA in 2025, Promise More Gains Ahead

Despite U.S.-China trade headwinds, Wall Street’s most sought-after stock, NVIDIA Corporation NVDA, reported strong quarterly results throughout 2025, fueled by the artificial intelligence (AI) boom. Demand for its cutting-edge Blackwell chips and the CUDA software platform remained strong, helping NVDA stock surge 38.8% last year.  

Interestingly, two stocks — one riding the AI growth wave and another the quantum computing trend — outperformed NVIDIA in 2025 and are now showing greater momentum this year as well. They are D-Wave Quantum Inc. QBTS and Palantir Technologies Inc. PLTR, whose shares soared 181.2% and 135%, respectively, last year. 

Let us now examine the factors behind their strong performance and why their rally may not be over yet –  

D-Wave’s Advantage2 Drives Strong Revenue Growth 

D-Wave’s revenues came in at $3.7 million in the fiscal third quarter of 2025, nearly doubling year over year and up 20.8% sequentially, as cited on ir.dwavequantum.com. D-Wave’s revenues for the first nine months of last year were $21.8 million, an increase of 235% from the same period a year ago.  

Revenues improved as D-Wave rolled out its coveted Advantage2 platform to manage complex workloads and expanded its customer base, including Forbes Global 2000 companies. What’s more, D-Wave reported bookings of $2.4 million in the fiscal third quarter of 2025, up 3% year over year and 80% quarter over quarter. This means orders from customers have been received and will translate into future net revenues. 

As a result, D-Wave is expected to achieve robust earnings growth of 73.3% this year, driven by the Advantage2 system’s real-world applications, which are expected to expand bookings and reduce future losses. 

Brokers are also optimistic about the company’s prospects. They predict QBTS stock’s average short-term price target at $38.71, indicating a 47.5% increase from the last closing price of $26.25. The highest target stands at $48, suggesting a potential upside of 82.9%.

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Palantir Surges on Growing AI Platform Demand 

Palantir’s shares not only gained well in 2025 but are also poised for further growth due to the increasing adoption of its Artificial Intelligence Platform (AIP), which is in demand among both U.S. commercial and government clients.  

According to investors.palantir.com, the company’s third-quarter revenues came in at $1.18 billion, up 63% year over year and 18% sequentially, with growth in both commercial and government segments. Palantir further expects full-year 2025 sales to be at $4.396 billion to $4.400 billion, along with a positive GAAP net income. 

Palantir’s expanding commercial client base should propel future growth, while steady government contracts would create barriers to entry. Thus, the company’s expected earnings growth rate for the current year is a superb 78.1%. 

Brokers are somewhat positive about Palantir’s prospects, increasing the average short-term price target for PLTR to $192.67 (up 6.5%) from $180.84. The highest target is $255, indicating a potential 41% upside.

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

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

Zacks Investment Research