3 Key Ways D-Wave Is Developing an Advantage in Quantum Computing

Key Points

• D-Wave's 358% trailing-12-month return might scare some investors worried that the company is overhyped, but a number of key developments could continue to position it favorably.
• The company's recent achievement of an important technological milestone with the first scalable on-chip cryogenic control of qubits gives it a key advantage in the push toward commercialization.
• D-Wave's acquisition of Quantum Circuits will also cement its status as a dual provider of both annealing and gate-model tech, at a time when rivals like Rigetti have suffered setbacks.

D-Wave Quantum Inc. NYSE: QBTS, the $10-billion quantum computing company with a share price that has soared by more than 358% in the last 12 months, is working to position itself as the go-to quantum firm in a crowded field that also includes competitors like IonQ Inc. NYSE: IONQ, Rigetti Computing NASDAQ: RGTI, and others.

Each of these companies faces an uphill battle demonstrating to the broader public that quantum tech is useful for everyday applications. However, three recent developments—two key gains for D-Wave and one setback for major rival Rigetti—could position QBTS as the stock to beat this year.

D-Wave Has Entered the Gate-Model Arena

A longtime critique of D-Wave compared to its peers was that the company was too narrowly focused on quantum annealing technology. Annealing may be ideally positioned to solve certain types of complex problems involving optimization, but a consensus among many analysts and investors is that it could be a relative dead-end compared to gate-model technology, which likely has broader applications.

D-Wave is attempting to quash these concerns with its recent pivot to also include gate-model tech in its R&D. A major announcement at the start of the year—that the company had achieved the first scalable on-chip cryogenic control of qubits—suddenly makes D-Wave a major competitor in gate-model tech. This on-chip control could also be significant when it comes to eventual marketability, as it could reduce the need for large amounts of wiring and cryogenic controls that would make scaling quantum chips prohibitive.

With this recent advancement, D-Wave is positioning itself to be dominant in two different quantum approaches, a feat that other pure-play quantum firms have not yet been able to match to the same degree.

Putting the Cash Reserves to Good Use

After amassing well over $800 million in cash reserves by late 2025, D-Wave started this year with an announcement of a major acquisition. The $550-million purchase of Quantum Circuits Inc., slated for completion in January 2026, helps put D-Wave on an accelerated path toward large-scale, error-corrected gate-model systems and also contributes to its growing position in gate-model quantum tech.

D-Wave management expects that the acquisition will also facilitate its bringing gate-model products and services to market sometime in 2026. Although details about this have so far been few, the company is clearly pushing to widen its product lineup with an eye toward appealing to a broader customer base. This could go a long way toward boosting revenue—which in the most recent quarter sat at a low $3.7 million—and achieving consistent profits.

Rigetti's Delay Could Mean a New Opportunity for D-Wave

A third emerging advantage for D-Wave is external: in early January, Rigetti announced that it would delay the date for general availability of its Cepheus-1-108Q system 108-qubit quantum computing system. In order to achieve its stated goal of 99.5% median two-qubit gate fidelity, Rigetti has pushed back the launch of the system until the end of the first quarter of 2026.

By itself, this delay is likely not a major hindrance for Rigetti. It's not uncommon for companies preparing to unveil new technology to adjust their timelines in order to better ensure quality. However, the fact that Rigetti's delay comes at the same time that D-Wave is making significant progress from a technological standpoint—and just after Rigetti's sales declined by about 18% year-over-year for the most recent quarter—means that it could be enough to sway investor opinion in D-Wave's favor.

To be sure, Rigetti remains a powerful competitor of D-Wave's and a popular choice among analysts and investors. However, as short interest in RGTI stock climbed by 9.4% in the last month (while D-Wave's fell by 2.4%) it is possible that this combination of developments could provide an opportunity for D-Wave to break away.

D-Wave's overall rating among analysts sits at Moderate Buy, based on 14 Buys out of 16 total ratings. However, investors should note that the company remains a speculative investment—D-Wave has a massive valuation relative to its sales (yielding a price-to-sales ratio of more than 1,143)—despite calls for shares to climb by another 16.8%.