D-Wave Quantum (NASDAQ: QBTS) shares surged 7.2% through 12:15 p.m. ET on Friday after a major Wall Street firm initiated coverage with a bullish outlook.
BMO Capital analyst Harsh Kumar assigned an outperform rating to the quantum computing company, sending investors rushing into the stock.
Kumar set a price target that implies dramatic upside, suggesting the $20 stock could climb to $35 within the next twelve months.
In his initiation note, Kumar described D-Wave as “a revolutionary quantum computing company and one of the few in the world that currently has true commercial revenues.”
The analyst also highlighted a key structural advantage, noting that D-Wave is the only quantum computing company currently pursuing both annealing and gate model approaches simultaneously.
Annealing-based quantum computing is particularly suited to optimization problems involving enormous numbers of possible solutions, using quantum superposition and entanglement to find the lowest-energy outcome.
Gate model quantum computing more closely resembles traditional computing architecture, using algorithms to control circuits and arrive at the correct solution through a different technical pathway.
Kumar argued that D-Wave’s dual-track strategy gives the company a first-mover advantage in both approaches, making it “best positioned in the quantum space to have commercial success.”
Despite the bullish analyst sentiment, D-Wave is not currently profitable and is not expected to reach profitability by 2030, according to analyst projections.
The company is, however, projected to grow revenues substantially, with sales expected to surpass $444 million by 2030, representing more than a tenfold increase over the next four years.
That revenue trajectory reflects strong commercial momentum, even as the company continues burning cash to fund its expansion and technology development.
D-Wave’s dual-technology approach sets it apart from pure-play rivals, most of whom have committed exclusively to either annealing or gate model architectures.
The quantum computing sector broadly has attracted significant investor interest as enterprises explore practical applications for the technology across logistics, finance, and pharmaceuticals.
For investors focused purely on revenue growth rather than near-term profitability, D-Wave’s projected sales trajectory presents a compelling case for long-term positioning in the quantum space.
