D-Wave Quantum Inc. (QBTS), amidst a volatile market that has seen its stock plummet 36% over the last five trading sessions, stands out with a year-over-year gain of 679.43%, signaling significant investor interest in quantum computing. Today the company announced a robust performance for fiscal year 2024, with bookings exceeding $23 million, marking a 120% increase from the previous year. This growth is further underscored by the landmark sale of the first D-Wave Advantage™ annealing quantum computing system, expanding D-Wave’s revenue model to include on-premise sales.
The company emphasized that the D-Wave Advantage system, with its 5,000+ qubits and 15-way connectivity, represents the pinnacle of current quantum computing technology. Its sale to a customer not only signifies growing adoption but also the broadening of D-Wave’s market strategy. Customers now have unprecedented control over the quantum computer, enabling customization and integration that were previously out of reach. This move is particularly appealing to research institutions, academia, high-performance computing centers, and forward-thinking businesses aiming to leverage quantum computing for competitive edges, national security enhancements, and tackling energy consumption challenges posed by AI.
D-Wave’s on-premise offering complements its Leap™ quantum cloud service, which remains a preferred choice for application-focused customers. The company’s success in Q4 of fiscal 2024, with bookings at least $18 million, reflects a 500% increase over the same quarter in the previous year, highlighting a sharp acceleration in demand. Ending the fiscal year with a cash position of about $178 million, D-Wave demonstrates financial health and stability in a sector often criticized for its speculative nature.
Dr. Alan Baratz, CEO of D-Wave, emphasized the practical utility of their quantum systems in the market today, contrasting with the broader industry’s focus on research and development. His statement reflects a confidence in D-Wave’s technology to address real-world computational challenges efficiently and with lower energy consumption.
However, this optimistic narrative for D-Wave and the quantum computing sector at large was recently challenged. Nvidia’s CEO, Jensen Huang, at CES 2025, suggested that practical quantum computing applications might still be 15 to 30 years away. This comment led to a significant drop in stocks across the quantum computing landscape, including D-Wave, highlighting the market’s sensitivity to expert opinions on the sector’s timeline to commercial viability.
Despite this, developments like Alphabet’s (GOOG, GOOGL) Willow chip, which aims to address long-standing issues in quantum error correction, suggest that some segments of quantum technology might be closer to practical application than Huang’s timeline implies. This juxtaposition of optimism from within the industry, like IonQ Inc. (IONQ) or D-Wave’s advancements, against external skepticism provides a complex picture of the quantum computing market’s current state and future potential.
D-Wave’s performance and strategic moves towards on-premise solutions alongside cloud services paint a picture of a company actively shaping the quantum computing market. Yet, the broader industry’s path to widespread adoption remains uncertain, with investor sentiment swayed by pivotal statements from tech leaders like Huang, underlining the speculative and volatile nature of investing in groundbreaking technology.
Price Action: At the time of writing, QBTS was trading down 0.48% at $6.03, with a market cap of $1.64 billion. Opening the trading session at $6.34, the stock has fluctuated within an intraday range of $5.75 to $6.76.
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