Does D-Wave's Quantum Supremacy Make the Stock a Buy Now?

D-Wave Quantum Inc. QBTS is making major waves this month. The stock has skyrocketed 59.6% so far in May, significantly outperforming the broader Internet Software industry’s 16.2% and the S&P 500’s 5.7% gains. The company also outperformed other prominent players in quantum computing, like Rigetti Computing RGTI and IonQ IONQ, which rose 30.1% and 18.5%, respectively, during the same period.

This rally has been fueled largely by solid first-quarter 2025 financial results and significant technological achievements. Adding to the momentum is D-Wave CEO Dr. Alan Baratz’s last week’s discussion of the company’s recent quantum supremacy demonstration.

Share Price Performance

After this level of rally in May, is D-Wave Quantum still a smart buy, or has the stock already peaked? Let's take a closer look.

Strong Q1 With Record New Clients

D-Wave Quantum’s first-quarter 2025 revenues jumped 509% year over year, mainly driven by the Advantage2 system sale to the Julich Supercomputing Center. This lifted GAAP and non-GAAP gross profit by 736% and 644%, respectively. While bookings declined 64%, the company grew its customer base to 133, including 69 commercial clients comprising a number of Forbes Global 2000 companies.

Net loss shrank to 2 cents per share (compared with a net loss of 11 cents per share in the first quarter of 2024), the lowest since D-Wave’s 2022 public debut. Adjusted EBITDA loss narrowed 53% year over year.

Successful Demonstration of Quantum Supremacy

The market is buzzing after D-Wave Quantum's recent achievement of quantum supremacy on a real-world problem. Its 1,200-qubit Advantage2 prototype simulated complex magnetic materials in minutes, a task that would take the Oak Ridge National Laboratory’s exascale supercomputer nearly a million years. This breakthrough validates the supremacy of D-Wave’s quantum annealing systems and their real-world applicability, setting the company apart in an industry often dominated by theoretical claims.

On May 9, 2025, CEO Dr. Alan Baratz appeared on Fox Business’ The Claman Countdown to discuss the achievement, noting the growing interest from supercomputing circles and national labs. Baratz also addressed D-Wave’s high-value system sales, ranging from $20 to $40 million, emphasizing that while sales cycles are long, momentum is building as enterprises and governments increasingly turn to quantum-powered solutions. He reiterated the company’s view that annealing quantum computing is becoming the key driver for commercial adoption, especially in solving real-world optimization challenges.

Significant Commercial Progress Paving Way for Long-Term Growth

D-Wave currently remains the only company with production-level quantum applications actively in real-world use. Major global companies like Ford Otosan, NTT DOCOMO and Japan Tobacco are using D-Wave’s technology for mission-critical workloads such as manufacturing scheduling, logistics optimization, and early-stage drug discovery. While the majority of its competitors are currently confined to lab research and experimental setups, this latest development, while generating tangible business value, is significantly attracting investors.

At its Qubits 2025 conference, D-Wave reported record attendance, with in-person participation up 23% and virtual attendance nearly doubling year over year. The event featured real-world use cases from customers, including Davidson Technologies, Japan Tobacco, Julich Supercomputing Center, NTT DOCOMO and others.

D-Wave Quantum Stock Trades Above 50 and 200-Day Moving Averages

Technical indicators suggest continued strong performance for D-Wave Quantum. Notably, the 50-day SMA continues to read higher than the 200-day SMA, signaling a bullish trend. This technical strength underscores positive market sentiment and confidence in QBTS’ financial health and prospects.

50-And -200-Day SMAs

QBTS is a Buy Now

D-Wave Quantum delivered a record-breaking first quarter highlighted by a 509% year-over-year revenue surge and its lowest net loss since going public. The quarter also marked a technical breakthrough with D-Wave demonstrating quantum supremacy. Additionally, the global quantum computing market is projected to reach $125 billion by 2030 at a CAGR of 36.9%, indicating extremely strong long-term potential. With rising enterprise adoption and a competitive edge over peers like Rigetti Computing and IonQ in commercial quantum applications, this Zacks Rank #2 (Buy) stock presents a strategic investment opportunity. Investors should consider adding the stock to their portfolios before further advancements drive the share price higher. 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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