D-Wave Quantum (NASDAQ:QBTS) Shares Up 9.7% - Should You Buy?

Key Points

• QBTS shares jumped 9.7% to $17.85 as enthusiasm spread across quantum-computing stocks following an IonQ, NVIDIA and Oak Ridge National Laboratory breakthrough that sharply reduced quantum-circuit compilation time.
• D-Wave secured potential access to up to $100 million in CHIPS Act funding to support planned large-scale annealing and gate-model systems, while its upcoming Qubits Asia conference may highlight commercial adoption.
• Despite a consensus “Moderate Buy” rating and $36.27 price target, investors face significant risks: D-Wave remains unprofitable, recently missed revenue and EPS estimates, has recorded insider selling without purchases, and faces securities-law investigations.

D-Wave Quantum Inc. (NASDAQ:QBTS - Get Free Report) rose 9.7% on Thursday . The stock traded as high as $17.86 and last traded at $17.85. Approximately 15,581,150 shares traded hands during mid-day trading, a decline of 43% from the average session volume of 27,472,875 shares. The stock had previously closed at $16.27.

Key D-Wave Quantum News

Here are the key news stories impacting D-Wave Quantum this week:

• Positive Sentiment: Quantum stocks rallied broadly after IonQ, NVIDIA and Oak Ridge National Laboratory demonstrated an AI-based method that reduced quantum-circuit compilation time from roughly 11 minutes to 28 seconds. Although the breakthrough does not directly involve D-Wave, it strengthened investor enthusiasm for the broader quantum-computing theme. IonQ, NVIDIA and D-Wave quantum stocks article
• Positive Sentiment: Investors are also focusing on D-Wave’s finalized agreement with the U.S. Department of Commerce for access to as much as $100 million under the CHIPS and Science Act. The funding is intended to support a potential 100,000-qubit annealing system and 10,000-qubit gate-model system, reinforcing the company’s long-term roadmap.
• Positive Sentiment: D-Wave announced that it will host the Qubits Asia 2026 conference in Seoul on October 28, where it plans to showcase customer deployments and quantum-computing adoption across the Asia-Pacific region. The event could provide evidence of commercial traction, although it does not immediately add revenue. D-Wave Qubits Asia conference announcement
• Neutral Sentiment: Analyst sentiment remains favorable but limited: the supplied data shows one Buy rating and a median price target of $40. These targets imply substantial upside, but they were issued months ago and may not reflect current execution risks.
• Negative Sentiment: Two law firms, including Pomerantz, announced investigations into potential securities-law claims involving D-Wave. The announcements do not establish wrongdoing, but they add headline and litigation risk. Pomerantz D-Wave investigation
• Negative Sentiment: Recent insider activity is a cautionary signal: the supplied data lists 15 insider sales and no purchases during the past six months. D-Wave also remains unprofitable, with its latest reported revenue below analyst expectations, leaving QBTS highly dependent on future commercialization and government support.

Analyst Upgrades and Downgrades

Several brokerages recently commented on QBTS. Canaccord Genuity Group set a $35.00 price target on D-Wave Quantum in a research report on Thursday, August 6th. Wall Street Zen upgraded shares of D-Wave Quantum from a "strong sell" rating to a "sell" rating in a research note on Saturday, August 8th. Rosenblatt Securities reaffirmed a "buy" rating and issued a $43.00 target price on shares of D-Wave Quantum in a report on Friday, August 7th. BMO Capital Markets started coverage on shares of D-Wave Quantum in a research note on Thursday, August 20th. They issued an "outperform" rating and a $35.00 target price for the company. Finally, Benchmark started coverage on D-Wave Quantum in a report on Monday, July 27th. They set a "buy" rating and a $30.00 price target for the company. Thirteen analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat.com, D-Wave Quantum has a consensus rating of "Moderate Buy" and a consensus price target of $36.27.

D-Wave Quantum Trading Up 9.1%

The company has a debt-to-equity ratio of 0.03, a quick ratio of 20.42 and a current ratio of 20.55. The business has a fifty day simple moving average of $18.39 and a 200 day simple moving average of $19.93. The stock has a market capitalization of $6.57 billion, a price-to-earnings ratio of -25.04 and a beta of 2.15.

D-Wave Quantum (NASDAQ:QBTS - Get Free Report) last announced its earnings results on Thursday, August 6th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.02). The business had revenue of $3.08 million during the quarter, compared to the consensus estimate of $4.03 million. D-Wave Quantum had a negative net margin of 2,001.59% and a negative return on equity of 26.67%. The company's revenue was down 0.6 compared to the same quarter last year. During the same period in the previous year, the firm posted ($0.08) EPS. As a group, research analysts expect that D-Wave Quantum Inc. will post -0.46 EPS for the current year.

Insider Buying and Selling at D-Wave Quantum

In related news, VP Sophie Ames sold 3,070 shares of the business's stock in a transaction that occurred on Monday, July 20th. The stock was sold at an average price of $16.95, for a total value of $52,036.50. Following the completion of the sale, the vice president directly owned 589,009 shares in the company, valued at approximately $9,983,702.55. The trade was a 0.52% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders own 1.30% of the company's stock.

Institutional Trading of D-Wave Quantum

Several large investors have recently modified their holdings of QBTS. BlackRock Inc. bought a new stake in D-Wave Quantum during the second quarter worth about $795,206,000. Geode Capital Management LLC grew its position in D-Wave Quantum by 11.5% in the fourth quarter. Geode Capital Management LLC now owns 8,394,726 shares of the company's stock valued at $220,085,000 after acquiring an additional 866,405 shares during the last quarter. Bank of America Corp DE bought a new position in D-Wave Quantum in the second quarter valued at about $104,183,000. Clear Street Group Inc. raised its stake in D-Wave Quantum by 40.4% during the fourth quarter. Clear Street Group Inc. now owns 4,281,254 shares of the company's stock worth $111,955,000 after acquiring an additional 1,232,106 shares in the last quarter. Finally, Goldman Sachs Group Inc. lifted its holdings in shares of D-Wave Quantum by 311.6% in the fourth quarter. Goldman Sachs Group Inc. now owns 3,548,013 shares of the company's stock worth $92,781,000 after acquiring an additional 2,685,980 shares during the last quarter. 42.47% of the stock is owned by institutional investors and hedge funds.

About D-Wave Quantum

D-Wave Quantum Inc develops quantum computing systems, software, and services for commercial, government, and research customers. The company is best known for its quantum annealing technology, which is designed to help solve complex optimization problems involving areas such as logistics, scheduling, manufacturing, artificial intelligence, and financial modeling.

D-Wave also develops gate-model quantum computing technology and provides access to its systems through cloud-based services, including the Leap quantum application environment.

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