D-Wave Has Secured a Powerful Quantum Computing Partner. Is Now the Right Time to Invest in QBTS Shares?

Quantum Computing Industry Set for Rapid Expansion

The quantum computing sector is on track for significant growth, with worldwide revenues projected to soar to approximately $9 billion by 2030—a dramatic increase from $260 million in 2020. This trajectory suggests an annual growth rate exceeding 40% throughout the decade.

D-Wave Quantum's Major Acquisition

In this climate of accelerating expectations, D-Wave Quantum (QBTS) has revealed plans for a substantial $550 million acquisition of Quantum Circuits Inc., a company specializing in error-corrected superconducting gate-model quantum systems. The transaction will be split between $300 million in D-Wave stock and $250 million in cash. The aim is to merge D-Wave’s expertise in quantum cloud services and annealing technology with Quantum Circuits’ advanced gate-model solutions. Leadership anticipates that this combination will speed up the development of a scalable, fully error-corrected gate-model quantum computer, with the first dual-rail system anticipated to launch in 2026.

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Despite the promise, quantum computing is still several years from widespread commercial use. Wedbush has described the acquisition as a “formidable ally” for D-Wave. The question remains: does QBTS deserve a place in your portfolio at current prices, or is the recent surge in share price outpacing the company’s actual progress? Let’s take a closer look.

QBTS: Financial Overview

D-Wave Quantum generates revenue through several channels: offering cloud-based access to its annealing quantum computers, developing gate-model systems, and providing software and services for optimization and AI applications. Over the past year, QBTS shares have climbed about 360%, with a 7.5% gain year-to-date, reflecting a shift in investor sentiment.

Recent financials show quarterly revenue at approximately $3.7 million—double the figure from a year earlier and up over 20% from the previous quarter. Annual sales now total around $9 million. The company has also seen stronger bookings, exceeding $2.4 million in a single quarter and more than $12 million secured shortly after the reporting period.

Profitability metrics have improved as well. GAAP gross profit reached about $2.7 million, with gross margins rising to the low 70% range, up from the mid-50% range a year ago, thanks in part to the scaling of higher-value systems like the upgraded Advantage2.

However, expenses remain high. Operating costs topped $30 million in the latest quarter, driven by increased staffing, manufacturing, and stock-based compensation. The company continues to operate at a significant loss, with an annual net loss of roughly $144 million and an EPS near -1.35. The most recent quarter saw a net loss of about $140 million, largely due to over $120 million in non-cash warrant-related charges following a sharp move in the stock price.

QBTS’s Innovation and Expansion

D-Wave recently achieved a milestone by demonstrating scalable on-chip cryogenic control of gate-model qubits, a breakthrough that simplifies wiring without sacrificing qubit performance. This multiplexed control technology, already used to manage tens of thousands of qubits in D-Wave’s commercial annealing processors, can now be applied to gate-model systems—removing a significant barrier to building large-scale, commercially viable quantum computers.

The company is also expanding its annealing business both geographically and through real-world applications. In Italy, D-Wave is supporting the new Q-Alliance with a €10 million contract for an Advantage2 annealing quantum computer, including a five-year agreement for half of the system’s capacity and an option to purchase the entire system. This initiative aims to make D-Wave’s hardware a shared resource for Italian academia, industry, and government, fostering long-term adoption.

On the software front, D-Wave has introduced an open-source quantum AI toolkit and a demonstration that enables developers to connect its quantum processors to modern machine learning frameworks and even generate basic images—showcasing the potential of annealing quantum hardware in AI applications.

Analyst Outlook and Future Prospects

Analysts expect the current quarter (ending December 2025) to deliver an average EPS of -$0.05, a significant improvement from -$0.37 a year earlier—an 86.49% year-over-year gain. For the full fiscal year 2025, consensus estimates stand at -$0.20 versus -$0.75 last year, indicating a 73.33% improvement.

This trend toward narrowing losses helps explain why price targets remain well above current trading levels. Jefferies, for example, has set a $45 price target—about 73% higher than the stock’s price at the time of their December report—highlighting confidence in the company’s long-term potential. Wedbush also views the Quantum Circuits acquisition as a pivotal catalyst, assigning an “Outperform” rating and a $35 price target, and calling the deal a “formidable ally” that could accelerate progress toward a scalable, error-corrected gate-model system.

Among 15 analysts surveyed, 13 rate QBTS as a “Strong Buy,” one as “Moderate,” and one as “Hold,” with an average target price of $38.93. Compared to the current price of $28.11, this suggests a potential upside of 38.5%.

Conclusion

At present, QBTS appears to be a high-risk, high-reward speculative investment rather than a foundational portfolio holding. The acquisition of Quantum Circuits, advancements in cryogenic control, and expansion into quantum AI and European markets all indicate positive momentum. With Wall Street’s “Strong Buy” consensus and an implied upside of nearly 39%, the stock could continue to climb over the next year—provided the company maintains strong execution.