Could These 3 New-to-Market Quantum Computing Firms Threaten D-Wave?

Key Points

• D-Wave Quantum shares have plunged this year, but it remains one of the leading quantum computing firms based on its strong technology and growing (though modest) revenue.
• Still, in a highly-speculative environment, investors may be swayed by newer entrants to the quantum space.
• Companies like Horizon Quantum, Infleqtion, and Xanadu each only began trading publicly in recent months, but they have various ways of appealing to investors bullish on quantum overall.

With quantum computing firms making bigger and bigger headlines thanks to their technological achievements in recent quarters, it's no wonder that enthusiasm for these companies has skyrocketed. However, the reality that many firms are far from profit and widespread marketability has depressed share prices across the board. Is it time for major players like D-Wave Quantum Inc. NYSE: QBTS to move to the side to make way for new-to-market firms with fresh momentum?

The pure-play quantum space is small but growing at a rapid pace, and a handful of firms have undergone the IPO process just in the last several months. By nature, these companies are new to investors and largely untested. On top of that, they exist in a cutthroat and developing industry that is highly speculative—that's all to say, the companies below are high-risk plays. However, quantum computing bulls may also see tremendous potential in them, possibly even eclipsing D-Wave and other established rivals.

Quantum Infrastructure Firm Builds Partnerships With IonQ and AQT

Horizon Quantum Holdings Ltd. NASDAQ: HQ builds quantum software infrastructure and only began trading publicly in March 2026. Where Horizon stands out is its unique approach to building quantum tools, which may allow for greater scalability than some preexisting models.

Even with its short history as a publicly traded company, Horizon is making big moves. The company announced in early April a partnership with IonQ Inc. NYSE: IONQ, another established leader in the quantum space and a primary rival of D-Wave's.

It is also breaking ground in the interaction of hardware and software in the quantum computing industry, thanks to another new partnership with European quantum firm Alpine Quantum Technologies (AQT).

HQ is significantly limited in its commercialization at this point and may have a long timeline to even generate revenue, so this company is a purely speculative play for investors.

Another Hybrid Approach, But Still Early to Assess

With only slightly more history than Horizon as a publicly traded firm, Infleqtion Inc. NYSE: INFQ is a hybrid quantum company, putting it in more direct competition with D-Wave. However, Infleqtion's focus on neutral-atom quantum computing gives it a unique approach, and one that may end up appealing to enterprise customers.

Taking on established, pre-existing firms so directly puts Infleqtion at an elevated risk level and forces it to differentiate its products more aggressively. It may be able to do so with its focus on sensing and timing opportunities.

The company's neutral-atom technology is already proving to be scalable—it reported two logical qubits in 2024, 12 last year, and aims for 100 by 2028.

This promise may be one reason why two early analysts, with BTIG Research and Citigroup, have both rated INFQ favorably, including price targets of $22 and $20, respectively, which translates to upside potential of around 40%.

Unproven Technology But Strong Potential

Canadian firm Xanadu Quantum Technologies Ltd. NASDAQ: XNDU builds photonics-based quantum components.

Driven by the potential for novel designs that could lead to strong support and partnerships from existing players, Xanadu could disrupt the industry more broadly. However, the firm is still highly speculative and has minimal revenue from a technology that remains largely untested in real-world applications.

Like the firms above, Xanadu may fall into a binary category: the company may end up being incredibly disruptive to the quantum space, or it may fade into obscurity.

In a landscape that is already highly speculative, investors may be more tempted than usual to take a chance on a new firm like this one.

D-Wave's Commercial Strengths and Dual Platform Help to Retain Benchmark Status

Despite threats from these newly-listed firms and a 15% decline year to date, D-Wave is still a strong benchmark for the industry. The company's annealing-based quantum systems have demonstrated real-world usefulness in multiple cases involving logistics mapping, scheduling, manufacturing, and other applications.

Where the firm really stands out, though, is in its recent pivot toward gate-model tech, which could allow D-Wave to offer a holistic approach to quantum at a time when other firms are more narrowly focused on a single strategy.

Even after the selloff so far this year, 14 out of 16 analysts support D-Wave with a bullish rating. Wall Street also expects it to rebound, assigning a predicted upside of more than 60% to the current share price. Still, concerns about a high valuation relative to low revenue base, a lack of profitability, dilution, and more persist. The question investors may want to ask is whether D-Wave becomes less speculative in light of the newer entrants to the quantum space above, or if it still presents too much of a risk for all but the most enthusiastic investors.