D-Wave Quantum Stock Scores a New Street-Hight Price Target

Business Insider

6 hours ago

Quantum computing stock D-Wave Quantum (NYSE:QBTS) has been turning plenty of heads over the past year with its unique approach to quantum computing.
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Instead of relying on the traditional 'gate model' used by most quantum computers – which mimics classical logic systems – D-Wave employs quantum annealing, a method particularly suited for solving intricate optimization problems, such as streamlining logistics routes or improving industrial workflows.
According to Roth's Sujeeva De Silva, an analyst ranked in the top 2% of Wall Street stock experts, D-Wave has seen an uptick in customer interest in recent months. He believes this growing engagement is expanding the company's revenue streams, not just from hosted services but also from direct hardware sales.
'We expect both commercial and AI-related customer interest to intensify in the coming quarters,' the 5-star analyst confidently said.
That, De Silva argues, is being driven by a broader push among commercial and institutional players to ramp up their quantum initiatives in 2025. Given D-Wave's head start in real-world quantum deployments, the analyst sees the company as well-positioned to capitalize on this trend.
Particularly notable is the interest coming from the AI sector, where quantum computing is increasingly seen as a tool to boost performance. De Silva highlights this crossover potential as a key growth vector for D-Wave.
At the same time, hardware sales remain a critical piece of the story. While D-Wave has already booked initial Advantage system sales to its primary hardware customer, De Silva says talks around additional deals are 'picking up.' With the recent rollout of the more advanced Advantage2 system – now broadly available – the analyst expects those conversations to accelerate, potentially unlocking higher-margin hardware sales going forward.
All of this underpins De Silva's upgraded price target on QBTS, from $12 to a Street-high $18, implying ~16% upside from current levels and reinforcing his Buy rating. While the valuation may seem rich, the analyst believes it will be easier to justify as annual hardware sales gain momentum. (To watch Desilva's track record, click here)
All other analysts agree with that assessment; based on a total of 6 unanimous Buy recommendations, QBTS stock claims a Strong Buy consensus rating. However, the $14.20 average price target implies a ~9% drop from current levels. Given that discrepancy, keep an eye out for either upward price target adjustments or potential downgrades in the near future. (See QBTS stock forecast)
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