Can D-Wave Hold Its Own Against 2 Fast-Growing Rivals?

Key Points

• D-Wave is a leader in the pure-play quantum computing space, but threats are growing from both smaller and larger companies.
• On the smaller side, an innovative quantum-focused cybersecurity company, Arqit, has plenty of hurdles to overcome but may signal a new face of the industry.
• A larger rival, Qualcomm, is not traditionally thought of as a quantum firm, but its investments in certain quantum companies could play an increasingly important role over time.

As Q2 2026 wraps up, the quantum computing race is as fierce as ever, and established pure-play companies like D-Wave Quantum Inc. NYSE: QBTS are facing new pressures. On one hand, D-Wave has to contend with increased activity in the quantum space by larger tech companies like Intel Corp. NASDAQ: INTC and IBM Corp. NYSE: IBM, both of which have made big pushes with new investments or major partnerships that leverage their size and operational advantages. This is made more complicated by an infusion of about $2 billion in funding across the industry from the Commerce Department, only a small portion of which is slated to go to D-Wave.

On the other hand, D-Wave also faces often-overlooked threats from smaller, up-and-coming quantum companies. One in particular—Arqit Quantum Inc. NASDAQ: ARQQ—may stand out in the field as a new rival. Below, we look at Arqit and a larger company traditionally outside of the quantum space, Qualcomm Inc. NASDAQ: QCOM, that may also threaten D-Wave's status as a leader in the field.

A Highly Speculative Quantum Cybersecurity Play Ahead of Its Time

Arqit takes a unique approach within the quantum ecosystem in that it is a cybersecurity firm focused on quantum-safe encryption solutions. As quantum computing technology continues to develop, it may introduce new security threats that classical computing systems are not equipped to handle—the risks may even extend to cryptocurrencies. Arqit is now preparing for future security threats that harness quantum tech thanks to its key distribution architecture.

For the first half of its fiscal 2026 (ending Sept. 30, 2026), revenue soared by some 830% year over year (YOY) on the strength of 11 unique contracts, up from seven a year prior. The company is breaking key ground with telecom network operators, government agencies, defense contractors, and other enterprise organizations, all of which could be vital client constituencies as the firm continues to grow.

By May 20, 2026, Arqit had amassed nearly $36 million in cash—while this remains modest, it is up about $7 million in the span of under two months. Supporting Arqit's growth is a collaboration with Intel that sees the former's encryption software pre-installed on select Intel hardware, as well as other partnerships that are emerging.

Investors may be concerned, however, that Arqit has missed some of its sales projections and that the company has diluted shares multiple times in recent years. These are reasons why it gets a Hold rating overall, with one Wall Street analyst suggesting ARQQ is a Buy and another calling it a Sell. Still, the price target of $60 is nearly 230% above current price levels. ARQQ is certainly a speculative and high-risk play, but it represents an early entrant to an industry that could end up being transformative—and which may eventually draw investor attention away from firms like D-Wave.

A Non-Quantum Company With an Important Role in Quantum Development

While Arqit has a market capitalization of only around $280 million, Qualcomm is nearly 850 times larger at roughly $238 billion. And though Qualcomm is not a pure-play quantum company—it is a wireless communications and semiconductor firm—it is nonetheless an emerging player in quantum technology through its Qualcomm Ventures arm.

Qualcomm Ventures is a venture capital branch of Qualcomm that invests in quantum computing firms, among others. Notably, Qualcomm Ventures has made a significant investment in control system creator Quantum Machines, the maker of a platform used to control quantum processors.

For Qualcomm, the interest in quantum computing is at least two-fold. For one, the company has significant capital and leverage to deploy to participate in the quantum race, despite its traditional focus elsewhere. Beyond that, though, Qualcomm will benefit from the development of quantum-safe communications hardware. The threat of future quantum-based hacking will no doubt have an impact on the rollout of future 6G networks and beyond, and Qualcomm's products will be safer for customers if the company can play a role in the development of key algorithms and cryptography.

In its latest earnings report, Qualcomm posted a modest 3.5% YOY decline in revenue, even as sales reached $10.6 billion and beat analyst predictions. EPS of $2.65 also beat expectations and came in at the high end of guidance. Some of Qualcomm's non-quantum businesses helped to drive performance—including, most notably, its automotive revenue and its data center business. For investors interested in Qualcomm's potential within the quantum space, the buffer provided by this operational diversification may be a strong draw.