A $550 Million Reason to Buy This Quantum Computing Stock Now

Quantum computing stocks are set to come back into play starting in 2026, and D-Wave Quantum (QBTS) is once again at the center of it all. This time, the focus is on a deal to acquire Quantum Circuits for a total of $550 million through a combination of stock and cash. For QBTS stock investors, it’s a game that’s not just about size.

The acquisition comes as governments, companies and research institutions shift their focus from the experimental phase to the implementation phase of quantum computing. D-Wave is trying to do something that few other companies of its kind can claim: stay relevant in the current era and be ready for the future. D-Wave’s Quantum Cloud platform is already generating revenue from production-grade technology that is being expanded to gate model systems.

This ambition has not escaped the attention of the market. Shares of QBTS stock have surged in the last year, signaling a newfound confidence that the adoption of quantum computing is finally moving from theory to practice.

D-Wave Quantum is a quantum computing company headquartered in Palo Alto, California, that specializes in developing, operating and managing commercial quantum computing systems, software and cloud-based services. D-Wave is primarily known as the manufacturer of annealing-based quantum computing systems that are used by several companies, governments, and research institutions around the world. D-Wave’s current market capitalization is $10.6 billion.

The share price of QBTS stock is highly volatile. Currently, after a multi-week rally, the stock is trading around $30, well above its 52-week low of $3.74 (although QBTS is still below its 52-week high of $46.75). QBTS performed significantly better than the market as a whole last year.

However, valuations remain aggressive. D-Wave remains unprofitable, with negative margins and returns, and a price-to-sales ratio of 364x. This is not unusual for early leaders in the quantum field. Valuations typically rely less on earnings and more on balance sheet strength, customer adoption, and technology. In these terms, having $836 million in cash is an extremely important factor for D-Wave.

The acquisition of Quantum Circuits is of great significance to D-Wave’s management. Because it involves gate-type superconducting quantum technology and error correction capabilities. The technology will now co-exist with D-Wave’s solutions platform to help customers solve a variety of computing problems.

However, it’s also important to consider the human capital of the deal. The agreement brings in top quantum experts such as Dr. Rob Schoelkopf and will help open a new research and development center in New Haven, Connecticut. The agreement enhances D-Wave’s reputation in the field of door model development – an area where competition has traditionally dominated.

On the operational front, the company has been making positive progress. Third-quarter revenue doubled from a year ago to $3.7 million. Gross profit margin also increased significantly due to increased system sales. In the first nine months of fiscal 2025, revenue grew 235% year over year, while GAAP gross margin reached nearly 85%. Although the company suffered larger losses, the loss rate has eased.

Analysts covering QBTS stock tend to view the company as a high-risk/high-reward company embracing the potential of quantum technology, and give the stock a “Strong Buy” consensus rating. Current price targets range from a low price target of $22 to a high price target of $48, with the average price target being $38.71. At current prices, that average target implies potential gains of about 29%. This positivity stems from D-Wave’s strong cash position, growing customer base and early monetization advantage in quantum computing.

On the date of publication, Yiannis Zourmpanos did not hold (either directly or indirectly) any securities mentioned in this article. All information and data in this article are for reference only. This article was originally published on Barchart.com