D-Wave Quantum (QBTS) shares surged 7.2% through 12:15 p.m. ET Friday after BMO Capital initiated coverage of the quantum computing company with a bullish rating.
BMO Capital analyst Harsh Kumar assigned D-Wave an outperform rating, arguing the stock could climb from $20 to $35 within a year.
Kumar described D-Wave as “a revolutionary quantum computing company and one of the few in the world that currently has true commercial revenues,” setting it apart from most quantum peers.
The analyst noted that D-Wave is the only quantum computing company currently pursuing both annealing and gate model approaches to the technology simultaneously.
Annealing is a method best suited to solving problems with an enormous number of possible solutions, using qubits that begin in quantum superposition before gradually transitioning toward classical binary states.
Gate model quantum computing, by contrast, more closely resembles traditional computing, where algorithms control circuits to identify the correct solution to a given problem.
Kumar believes 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 enthusiasm, D-Wave is not currently profitable and is not expected to reach profitability by 2030, according to analyst projections.
The company is expected to continue burning cash through the end of the decade, even as revenues are forecast to grow significantly over the next four years.
Sales are projected to more than 10x over that period, surpassing $444 million in 2030, offering a revenue growth story even without a clear path to earnings.
The gap between rapid revenue expansion and persistent losses raises questions about whether D-Wave’s commercial momentum can ultimately translate into shareholder value.
Investors buying into QBTS are wagering that a dominant early market position in quantum computing justifies the current valuation, despite an extended timeline to profitability.
The stock’s Friday rally reflects renewed investor appetite for quantum computing names as the sector attracts growing institutional attention heading into the second half of 2026.
