D-Wave's Advantage2 Gains Traction: More Upside Ahead for QBTS Stock?

Yahoo

5 hours ago

D-Wave Quantum's QBTS standout growth catalyst this quarter is the successful launch and commercial deployment of its next-generation Advantage2 quantum annealer. In the last-reported quarter, the company posted 509% year-over-year growth in revenues, driven mainly by the first Advantage2 sale to the Julich Supercomputing Center. Now generally available via D-Wave Quantum's Leap cloud, it's gaining traction in real-world applications, from U.S. defense to AI-driven drug discovery.
Shares of D-Wave Quantum have soared 67.4% over the past three months, largely outperforming the broader industry, sector and the benchmark.
Image Source: Zacks Investment Research
Commercialization of the Advantage2 Quantum System
A major driver of D-Wave Quantum's record first-quarter 2025 performance is the rapid commercialization of its next-gen Advantage2 quantum system. Featuring over 4,400 qubits, the platform delivers significant performance gains, 2x coherence time, 40% higher energy scale, and enhanced qubit connectivity, enabling more complex real-world optimization in AI, logistics, finance and materials science.
The system's first commercial sale to Julich Supercomputing Center contributed heavily to the first quarter in revenues. A second deployment is underway at Davidson Technologies for U.S. defense applications, highlighting Advantage2's expanding relevance in government sectors.
Following its general availability in May 2025 via the Leap cloud, D-Wave introduced new hybrid solvers for both continuous and integer variables, broadening the scope of use cases to include budgeting, scheduling and resource optimization. Beyond hardware, D-Wave also launched a quantum AI toolkit integrated with PyTorch, positioning Advantage2 as a platform for innovation in machine learning.
IonQ IONQ: It is rapidly scaling up through major moves, including its $1.075 billion acquisition of Oxford Ionics to accelerate fault-tolerant quantum development. It also launched a quantum networking hub via a $22 million Forte Enterprise deal with EPB and acquired Lightsynq and Capella Space to support its quantum internet vision. On the application side, IonQ partnered with AstraZeneca, AWS and NVIDIA NVDA to achieve a 20× speedup in simulating a pharmaceutical reaction, showcasing growing real-world impact.
Rigetti Computing RGTI: It has emphasized improvements in qubit fidelity and error mitigation, partnered with government entities for testing and calibration of its superconducting processors, and is reportedly advancing its roadmap toward hybrid quantum-classical cloud services. Although not yet celebrated through headline-making releases, Rigetti is positioning itself as a 'complete-stack' provider, integrating software infrastructure like its Quil programming framework and Forest SDK to support developer adoption alongside its next-gen hardware.
The Zacks Consensus Estimate for QBTS' 2025 earnings implies a 72% improvement over 2024.
Image Source: Zacks Investment Research
D-Wave Quantum currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NVIDIA Corporation (NVDA) : Free Stock Analysis Report
IonQ, Inc. (IONQ) : Free Stock Analysis Report
Rigetti Computing, Inc. (RGTI) : Free Stock Analysis Report
D-Wave Quantum Inc. (QBTS) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
Zacks Investment Research