D-Wave Quantum Stock: Are Advantage2 Gains Here to Stay?

It's difficult for even the most pessimistic of investors to overlook the sudden sharp rise in QBTS shares late in May 2025; however, the stock surged by about 133% throughout the first four weeks of the month.

After a fairly stagnant first few months of the year, D-Wave's precipitous rise came in multiple waves. The first surge occurred after a strong earnings report early in May. Still, the more significant jump took place surrounding S-Wave's announcement later in the month of the general availability of its Advantage2 computer.

The firm has managed to sustain its elevated trading level for several days following the announcement, but it will likely need further good news for investors to feel confident in its ability to maintain this price into the future.

Is Advantage2 a Game-Changer?

D-Wave's Advantage2 system is among the company's most advanced quantum computers available to date and is specifically designed for commercial use in applications including optimization, materials simulation, and AI. The system has numerous advantages over prior iterations of D-Wave's commercial line of quantum products—perhaps most notably, the company says Advantage2 has a two-fold increase in coherence, which speeds up its time to solution.

Two other critical factors could help Advantage2 to drive demand as well as hype. First, the computer has achieved notable energy efficiency, always a concern industry-wide when companies unveil new technology. Second, Advantage2 will be available via D-Wave's Leap cloud service, meaning that companies do not necessarily need to invest millions to install an on-premises physical computer.

Investors were clearly impressed by D-Wave's announcement, as evidenced by the optimism reflected in the company's share price. The decision of whether to sell now while the shares are just shy of an all-time high or to hold on and hope for further increases may come down to the company's financials and valuation.

Short-Term Risk, Long-Term Uncertainty

In the short term, D-Wave offers a high-risk, high-reward prospect for investors. The company's recent earnings report was encouraging in some ways: revenue surged, and losses per share came in better than expected by analysts, but the company still faces an uphill battle to achieve sustained profitability, and its cash burn may be concerning in the meantime.

One big question will be whether the Advantage2 system fuels a continued increase in customer base. D-Wave has managed to court new customers in recent months, slowly adding to its base and winning over clients in industries ranging from automotive to drug development and more.

Still, the total number of customers remains very low, perhaps because companies do not yet know exactly how to best utilize D-Wave's tools or because the cost of installing a physical quantum computer is prohibitively high for many businesses. Advantage2's inclusion in D-Wave's Leap portfolio could be a game-changer in this case, but investors will want to follow closely to see if it does, in fact, lead to an increase in customer figures.

Investors should also keep in mind that the stakes are quite high for QBTS shares in the near term, owing to a massive increase in short interest in recent weeks. In the last month, short interest in the stock has ballooned by a concerning 17% to more than 56 million shares. There is clearly a sizable pool of investors expecting the stock price to decline. This is understandable, as QBTS is massively overvalued according to traditional metrics like price-to-sales ratio (239.76).

Taking a longer view of the quantum industry, there are again mixed views as to how D-Wave compares against its rivals. The company seems to be one of the most-hyped quantum firms today and has achieved noteworthy advances. Still, a pessimistic view suggests that the quantum revolution may still be years away, and some bears feel that D-Wave is pursuing a technological path that is ultimately a dead-end. For most investors at this point, caution is warranted when considering an action on D-Wave stock.

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The article "D-Wave Quantum Stock: Are Advantage2 Gains Here to Stay?" first appeared on MarketBeat.