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D-Wave Quantum's Multi-Front Growth: Target Price Sees 17% Upside
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Key Takeaways
D-Wave launched an open-source Quantum AI Toolkit integrated with PyTorch for hybrid AI workflows.
Partnership with NASA targets superconducting interconnects for 100,000-qubit systems.
Shares surged 57.7% in three months, with analysts seeing 17.06% more upside.
D-Wave Quantum (QBTS - Free Report) is expanding into quantum AI with the launch of an open-source Quantum AI Toolkit, directly integrated with PyTorch. This enables developers and researchers to create hybrid quantum-classical machine learning workflows, bridging traditional AI methods with the capabilities of quantum computing. At the core is D-Wave’s new discrete latent space method, designed to align with the native discrete processing capabilities of its annealing quantum systems. This design promises faster, more energy-efficient models compared to conventional techniques.
Early adopters, including Japan Tobacco and Triumph, are already exploring optimization and generative AI applications using the toolkit. Continued R&D aims to extend quantum AI capabilities beyond the current release, positioning D-Wave at the forefront of this rapidly growing field.
Simultaneously, D-Wave is advancing its strategic infrastructure and scaling initiatives. A key project is the Cryogenic Packaging Initiative with NASA’s Jet Propulsion Laboratory to develop superconducting chip-to-chip interconnect, critical for scaling to 100,000-qubit annealing systems and for future fluxonium-based gate model processors.
To support these goals, D-Wave is scaling manufacturing with superconducting PCB advanced packaging, increasing wafer fabrication runs and developing the Advantage3 prototype. These combined efforts position the company to deliver both cutting-edge AI applications and the next generation of scalable quantum computing hardware.
During the past three months, shares of D-Wave have rallied 57.7%, outperforming the industry average and the benchmark.
QBTS - Three Months Price Performance
Image Source: Zacks Investment Research
What Other Pureplay Quantum Computing Rivals Are Doing?
IonQ (IONQ - Free Report) : The company is advancing in quantum AI through its gate-based architecture, focusing on hybrid AI model training and partnerships with cloud providers. IonQ recently completed the acquisitions of Lightsynq and Capella and announced a proposed $1.075 billion acquisition of Oxford Ionics, expanding its quantum computing and networking roadmap with ion-trap-on-chip innovation, photonic interconnects and space-based QKD.
Rigetti Computing (RGTI - Free Report) : The company has unveiled a major breakthrough with its modular 36-qubit chiplet-based system, achieving 99.5% median two-qubit gate fidelity, double the performance of its 84-qubit Ankaa-3. Rigetti plans to launch the 36-qubit system on Aug. 15, with a 100+-qubit version targeted for year-end 2025, advancing its modular superconducting architecture strategy.
Average Target Price for QBTS Suggests Near-Term Upside
Based on short-term price targets offered by 10 analysts, D-Wave Quantum’s average price target represents an increase of 17.06% from the last closing price of $17.17.
Image Source: Zacks Investment Research
D-Wave Quantum currently carries a Zacks Rank #4 (Sell).
Image: Bigstock
D-Wave Quantum's Multi-Front Growth: Target Price Sees 17% Upside
Key Takeaways
D-Wave Quantum (QBTS - Free Report) is expanding into quantum AI with the launch of an open-source Quantum AI Toolkit, directly integrated with PyTorch. This enables developers and researchers to create hybrid quantum-classical machine learning workflows, bridging traditional AI methods with the capabilities of quantum computing. At the core is D-Wave’s new discrete latent space method, designed to align with the native discrete processing capabilities of its annealing quantum systems. This design promises faster, more energy-efficient models compared to conventional techniques.
Early adopters, including Japan Tobacco and Triumph, are already exploring optimization and generative AI applications using the toolkit. Continued R&D aims to extend quantum AI capabilities beyond the current release, positioning D-Wave at the forefront of this rapidly growing field.
Simultaneously, D-Wave is advancing its strategic infrastructure and scaling initiatives. A key project is the Cryogenic Packaging Initiative with NASA’s Jet Propulsion Laboratory to develop superconducting chip-to-chip interconnect, critical for scaling to 100,000-qubit annealing systems and for future fluxonium-based gate model processors.
To support these goals, D-Wave is scaling manufacturing with superconducting PCB advanced packaging, increasing wafer fabrication runs and developing the Advantage3 prototype. These combined efforts position the company to deliver both cutting-edge AI applications and the next generation of scalable quantum computing hardware.
During the past three months, shares of D-Wave have rallied 57.7%, outperforming the industry average and the benchmark.
QBTS - Three Months Price Performance
Image Source: Zacks Investment Research
What Other Pureplay Quantum Computing Rivals Are Doing?
IonQ (IONQ - Free Report) : The company is advancing in quantum AI through its gate-based architecture, focusing on hybrid AI model training and partnerships with cloud providers. IonQ recently completed the acquisitions of Lightsynq and Capella and announced a proposed $1.075 billion acquisition of Oxford Ionics, expanding its quantum computing and networking roadmap with ion-trap-on-chip innovation, photonic interconnects and space-based QKD.
Rigetti Computing (RGTI - Free Report) : The company has unveiled a major breakthrough with its modular 36-qubit chiplet-based system, achieving 99.5% median two-qubit gate fidelity, double the performance of its 84-qubit Ankaa-3. Rigetti plans to launch the 36-qubit system on Aug. 15, with a 100+-qubit version targeted for year-end 2025, advancing its modular superconducting architecture strategy.
Average Target Price for QBTS Suggests Near-Term Upside
Based on short-term price targets offered by 10 analysts, D-Wave Quantum’s average price target represents an increase of 17.06% from the last closing price of $17.17.
Image Source: Zacks Investment Research
D-Wave Quantum currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.