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D-Wave's Advantage2 Gains Traction: More Upside Ahead for QBTS Stock?
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Key Takeaways
QBTS posted 509% revenue growth in Q1, led by the first Advantage2 sale to Julich Supercomputing Center.
The Advantage2 system boasts 4,400 qubits and key upgrades, enabling advanced real-world applications.
A second Advantage2 deployment at Davidson Technologies highlights traction in the U.S. defense sector.
D-Wave Quantum’s (QBTS - Free Report) standout growth catalyst this quarter is the successful launch and commercial deployment of its next-generation Advantage2 quantum annealer. In the last-reported quarter, the company posted 509% year-over-year growth in revenues, driven mainly by the first Advantage2 sale to the Julich Supercomputing Center. Now generally available via D-Wave Quantum’s Leap cloud, it's gaining traction in real-world applications, from U.S. defense to AI-driven drug discovery.
Shares of D-Wave Quantum have soared 67.4% over the past three months, largely outperforming the broader industry, sector and the benchmark.
Year-to-Date Price Comparison of QBTS
Image Source: Zacks Investment Research
Commercialization of the Advantage2 Quantum System
A major driver of D-Wave Quantum’s record first-quarter 2025 performance is the rapid commercialization of its next-gen Advantage2 quantum system. Featuring over 4,400 qubits, the platform delivers significant performance gains, 2x coherence time, 40% higher energy scale, and enhanced qubit connectivity, enabling more complex real-world optimization in AI, logistics, finance and materials science.
The system’s first commercial sale to Julich Supercomputing Center contributed heavily to the first quarter in revenues. A second deployment is underway at Davidson Technologies for U.S. defense applications, highlighting Advantage2’s expanding relevance in government sectors.
Following its general availability in May 2025 via the Leap cloud, D-Wave introduced new hybrid solvers for both continuous and integer variables, broadening the scope of use cases to include budgeting, scheduling and resource optimization. Beyond hardware, D-Wave also launched a quantum AI toolkit integrated with PyTorch, positioning Advantage2 as a platform for innovation in machine learning.
Where Do QBTS' Competitors Stand Today?
IonQ (IONQ - Free Report) : It is rapidly scaling up through major moves, including its $1.075 billion acquisition of Oxford Ionics to accelerate fault-tolerant quantum development. It also launched a quantum networking hub via a $22 million Forte Enterprise deal with EPB and acquired Lightsynq and Capella Space to support its quantum internet vision. On the application side, IonQ partnered with AstraZeneca, AWS and NVIDIA (NVDA - Free Report) to achieve a 20× speedup in simulating a pharmaceutical reaction, showcasing growing real-world impact.
Rigetti Computing (RGTI - Free Report) : It has emphasized improvements in qubit fidelity and error mitigation, partnered with government entities for testing and calibration of its superconducting processors, and is reportedly advancing its roadmap toward hybrid quantum-classical cloud services. Although not yet celebrated through headline-making releases, Rigetti is positioning itself as a “complete-stack” provider, integrating software infrastructure like its Quil programming framework and Forest SDK to support developer adoption alongside its next-gen hardware.
Estimates for D-Wave
The Zacks Consensus Estimate for QBTS’ 2025 earnings implies a 72% improvement over 2024.
Image: Bigstock
D-Wave's Advantage2 Gains Traction: More Upside Ahead for QBTS Stock?
Key Takeaways
D-Wave Quantum’s (QBTS - Free Report) standout growth catalyst this quarter is the successful launch and commercial deployment of its next-generation Advantage2 quantum annealer. In the last-reported quarter, the company posted 509% year-over-year growth in revenues, driven mainly by the first Advantage2 sale to the Julich Supercomputing Center. Now generally available via D-Wave Quantum’s Leap cloud, it's gaining traction in real-world applications, from U.S. defense to AI-driven drug discovery.
Shares of D-Wave Quantum have soared 67.4% over the past three months, largely outperforming the broader industry, sector and the benchmark.
Year-to-Date Price Comparison of QBTS
Image Source: Zacks Investment Research
Commercialization of the Advantage2 Quantum System
A major driver of D-Wave Quantum’s record first-quarter 2025 performance is the rapid commercialization of its next-gen Advantage2 quantum system. Featuring over 4,400 qubits, the platform delivers significant performance gains, 2x coherence time, 40% higher energy scale, and enhanced qubit connectivity, enabling more complex real-world optimization in AI, logistics, finance and materials science.
The system’s first commercial sale to Julich Supercomputing Center contributed heavily to the first quarter in revenues. A second deployment is underway at Davidson Technologies for U.S. defense applications, highlighting Advantage2’s expanding relevance in government sectors.
Following its general availability in May 2025 via the Leap cloud, D-Wave introduced new hybrid solvers for both continuous and integer variables, broadening the scope of use cases to include budgeting, scheduling and resource optimization. Beyond hardware, D-Wave also launched a quantum AI toolkit integrated with PyTorch, positioning Advantage2 as a platform for innovation in machine learning.
Where Do QBTS' Competitors Stand Today?
IonQ (IONQ - Free Report) : It is rapidly scaling up through major moves, including its $1.075 billion acquisition of Oxford Ionics to accelerate fault-tolerant quantum development. It also launched a quantum networking hub via a $22 million Forte Enterprise deal with EPB and acquired Lightsynq and Capella Space to support its quantum internet vision. On the application side, IonQ partnered with AstraZeneca, AWS and NVIDIA (NVDA - Free Report) to achieve a 20× speedup in simulating a pharmaceutical reaction, showcasing growing real-world impact.
Rigetti Computing (RGTI - Free Report) : It has emphasized improvements in qubit fidelity and error mitigation, partnered with government entities for testing and calibration of its superconducting processors, and is reportedly advancing its roadmap toward hybrid quantum-classical cloud services. Although not yet celebrated through headline-making releases, Rigetti is positioning itself as a “complete-stack” provider, integrating software infrastructure like its Quil programming framework and Forest SDK to support developer adoption alongside its next-gen hardware.
Estimates for D-Wave
The Zacks Consensus Estimate for QBTS’ 2025 earnings implies a 72% improvement over 2024.
Image Source: Zacks Investment Research
D-Wave Quantum currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.