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Here's Why D-Wave Stock Promises High Growth and Is a Buy
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After Alphabet Inc.’s (GOOGL - Free Report) quantum computing chip, Willow, claimed superiority over non-quantum chips, quantum computing stocks came into the forefront. Notable among them is D-Wave Quantum Inc. (QBTS - Free Report) , whose latest earnings results show a promising path to profitability. Let’s see in detail what makes the stock a good buy.
Why D-Wave Stock Has High Growth Potential?
D-Wave’s first-quarter earnings indicated a path to profitability that could boost its stock price. D-Wave’s first-quarter loss decreased significantly to $5.4 million from $17.3 million year over year. Revenues, on the other hand, totaled $15 million in the first quarter, up a whopping 509% from $2.5 million a year earlier, and topped analysts’ estimate of $10.5 million.
D-Wave’s decreasing deferred revenues show it meets customer obligations and reduces liabilities. The company, anyhow, set a new revenue record by selling a $12.2 million quantum computing system. The company sold an Advantage quantum machine to Germany’s Jülich Supercomputing Centre, showcasing quantum computing’s superiority over classical computing in a real-life problem.
Meanwhile, D-Wave's Advantage2 system can solve problems in 20 minutes, a task that would take supercomputers nearly 1 million years. This impressive assertion was challenged by scientists, although many concurred with the argument. D-Wave’s quantum supremacy generated interest among customers, including the mobile gaming and airline industries, bolstering the company’s growth prospects.
D-Wave, which has customers such as NTT Docomo and Mastercard Incorporated (MA - Free Report) , and a strong consolidated cash balance of $304.3 million, can become profitable and expand. Additionally, President Donald Trump’s trade deal with the United Kingdom, focusing on intellectual property protection and lowering tariffs on China, will positively influence quantum computing stocks such as D-Wave in the long run.
QBTS Stock to Buy Hand Over Fist
D-Wave’s niche in the quantum computing space, reduced losses, and record first-quarter revenues suggest positive long-term prospects for the stock, making it an enticing buy.
The company does face competition from its well-funded rivals, but D-Wave’s emphasis on its quantum annealing platform for solving complicated optimization problems could lead to substantial revenue growth and enhance the returns on your investments.
D-Wave is well-positioned to capitalize on the growing superconducting quantum chip market size, estimated to witness a 17.2% CAGR from 2025 to 2034, per Global Market Insights. Hence, D-Wave’s expected earnings growth rate for the current year is 66.7%, and the stock flaunts a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Further, the QBTS stock is at the moment trading above both the short-term 50-day moving average (DMA) and long-term 200-DMA, signaling a bullish trend, making it a smart investment choice.
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Here's Why D-Wave Stock Promises High Growth and Is a Buy
After Alphabet Inc.’s (GOOGL - Free Report) quantum computing chip, Willow, claimed superiority over non-quantum chips, quantum computing stocks came into the forefront. Notable among them is D-Wave Quantum Inc. (QBTS - Free Report) , whose latest earnings results show a promising path to profitability. Let’s see in detail what makes the stock a good buy.
Why D-Wave Stock Has High Growth Potential?
D-Wave’s first-quarter earnings indicated a path to profitability that could boost its stock price. D-Wave’s first-quarter loss decreased significantly to $5.4 million from $17.3 million year over year. Revenues, on the other hand, totaled $15 million in the first quarter, up a whopping 509% from $2.5 million a year earlier, and topped analysts’ estimate of $10.5 million.
D-Wave’s decreasing deferred revenues show it meets customer obligations and reduces liabilities. The company, anyhow, set a new revenue record by selling a $12.2 million quantum computing system. The company sold an Advantage quantum machine to Germany’s Jülich Supercomputing Centre, showcasing quantum computing’s superiority over classical computing in a real-life problem.
Meanwhile, D-Wave's Advantage2 system can solve problems in 20 minutes, a task that would take supercomputers nearly 1 million years. This impressive assertion was challenged by scientists, although many concurred with the argument. D-Wave’s quantum supremacy generated interest among customers, including the mobile gaming and airline industries, bolstering the company’s growth prospects.
D-Wave, which has customers such as NTT Docomo and Mastercard Incorporated (MA - Free Report) , and a strong consolidated cash balance of $304.3 million, can become profitable and expand. Additionally, President Donald Trump’s trade deal with the United Kingdom, focusing on intellectual property protection and lowering tariffs on China, will positively influence quantum computing stocks such as D-Wave in the long run.
QBTS Stock to Buy Hand Over Fist
D-Wave’s niche in the quantum computing space, reduced losses, and record first-quarter revenues suggest positive long-term prospects for the stock, making it an enticing buy.
The company does face competition from its well-funded rivals, but D-Wave’s emphasis on its quantum annealing platform for solving complicated optimization problems could lead to substantial revenue growth and enhance the returns on your investments.
D-Wave is well-positioned to capitalize on the growing superconducting quantum chip market size, estimated to witness a 17.2% CAGR from 2025 to 2034, per Global Market Insights. Hence, D-Wave’s expected earnings growth rate for the current year is 66.7%, and the stock flaunts a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Further, the QBTS stock is at the moment trading above both the short-term 50-day moving average (DMA) and long-term 200-DMA, signaling a bullish trend, making it a smart investment choice.
Image Source: Zacks Investment Research