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D-Wave Quantum Surges 38% in March: Is QBTS a Smart Buy Now?

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Quantum computing is rapidly emerging as the next great revolution in technology, a field that could one day outpace artificial intelligence (AI) in terms of disruptive potential. This year is proving to be a pivotal period for the industry and especially for D-Wave Quantum Inc. (QBTS - Free Report) . In March, the company made headlines with a few groundbreaking achievements. It demonstrated quantum supremacy using its Advantage2 prototype. It also unveiled a quantum-enhanced blockchain architecture garnering huge investor focus.

Meanwhile, NVIDIA’s (NVDA - Free Report) shift in stance is quite intriguing. Given the company’s influence in AI and computing, NVIDIA CEO Jensen Huang’s earlier skepticism on quantum computing had a chilling effect on niche stocks. A reversal of his opinion at the “Quantum Day” event on March 20 indicates that major players are starting to recognize the technology’s “extraordinary impact.”

In March, shares of D-Wave Quantum rallied 37.9%, outperforming the broader industry and the benchmark’s 9.4% and 2.7% dips, respectively. The company also outperformed other prominent players in quantum computing, like Rigetti Computing (RGTI - Free Report) and IonQ (IONQ - Free Report) , which rose 10.3% and 8.4%, respectively, during the same period.

Share Price Performance-March 2025

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What's Driving D-Wave Quantum Ahead of its Peers?

Groundbreaking Innovations: As we have already said, D-Wave Quantum recently gained huge investor attention while demonstrating quantum computational supremacy with its Advantage2 prototype, solving a complex magnetic materials problem exponentially faster than the world’s most powerful classical supercomputers. Shortly after, the company unveiled a new blockchain architecture leveraging quantum techniques, a move that could disrupt both cybersecurity and decentralized finance.

Strategic Collaborations: At the Qubits 2025 conference, D-Wave Quantum showcased its collaborations, including a drug discovery project with Japan Tobacco's pharmaceutical division and automotive applications with Ford Otosan. The Japan Tobacco initiative utilized quantum computing to enhance AI models for generating novel molecular structures, highlighting D-Wave's practical applications in diverse industries.

In contrast, Rigetti Computing has adopted a more cautious, research-focused approach. CEO Subodh Kulkarni suggests that meaningful commercial applications are still several years away, emphasizing the long-term nature of quantum computing development. This positions Rigetti more conservatively compared to D-Wave's active commercial engagements.  Further, IonQ's gate-based quantum systems, while promising, are yet to demonstrate comparable commercial traction or large-scale deployments.

QBTS' Financial Growth and Expanding Cash Reserves

D-Wave Quantum reported record bookings of $23.9 million in 2024, up 128% from the year-ago period. Further, as of Dec. 31, 2024, D-Wave’s consolidated cash balance totaled $178 million, and as of March 13, 2025, it exceeded $300 million, underscoring its robust market position.

D-Wave Quantum Stock Trades Above 50 and 200-Day Moving Averages

Technical indicators suggest continued strong performance for D-Wave Quantum. Notably, the 50-day SMA continues to read higher than the 200-day SMA, signaling the bullish trend. This technical strength underscores positive market sentiment and confidence in QBTS’ financial health and prospects.

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Earnings Estimates for QBTS Show Upward Trend Too

The Zacks Consensus Estimate for 2025 revenues is currently pegged at $23.39 million, indicating an increase of 163.85% from the 2024 reported figure.

The consensus mark for the bottom line is currently pegged at a loss of 25 cents per share, indicating a 66.67% improvement from the year-ago period. Over the past 30 days, the Zacks Consensus Estimate has moved north from a loss of 38 cents as analysts increased their estimates, depicting optimism over the stock’s growth potential.

 

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Average Target Price for QBTS Suggests a Strong Upside

Based on short-term price targets offered by six analysts, D-Wave Quantum is currently trading 30.5% below its average Zacks price target.

 

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Is QBTS a Buy Now?

Following Jensen Huang’s remarks at NVIDIA’s “Quantum Day” in March, quantum computing stocks have rebounded sharply, with QBTS posting significant gains last month. D-Wave Quantum is emerging as a strong investment opportunity in 2025, driven by its recent demonstration of quantum supremacy and the unveiling of a quantum-enhanced blockchain architecture.

Additionally, the global quantum computing market is projected to reach $125 billion by 2030 at a CAGR of 36.9%, indicating extremely strong long-term potential. With rising enterprise adoption and a competitive edge over peers like Rigetti Computing and IonQ in commercial quantum applications, this Zacks Rank #2 (Buy) stock presents a strategic investment opportunity. Investors should consider adding the stock to their portfolios before further advancements drive the share price higher. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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