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QBTS in Focus Amid Quantum Launches, Competition With IBM, HON
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Key Takeaways
QBTS Advantage2 boosts qubit coherence, energy and connectivity.
QBTS adoption is strong with 1,300 Leap Quantum LaunchPad applicants.
Analysts project 37.5% near-term price upside for D-Wave Quantum.
In the second quarter of 2025, D-Wave Quantum (QBTS - Free Report) reached a key milestone with the launch of its Advantage2 quantum computer, the company’s latest annealing system. Designed to tackle complex problems in optimization, material simulation and artificial intelligence, the Advantage2 processor delivers significant performance improvements over its predecessor, including double the qubit coherence time, a 40% increase in energy scale, and expanded connectivity from 15-way to 20-way. Further, D-Wave’s quantum AI toolkit integrated with PyTorch enables hybrid quantum-classical workflows, including demonstrations like simple image generation, marking a step forward in quantum AI development.
Beyond hardware and AI tooling, D-Wave is investing heavily in scalable quantum architecture and advanced cryogenic packaging. Collaborating with NASA’s Jet Propulsion Laboratory, the company has demonstrated superconducting interconnects between chips, which serve as a foundation for both annealing and gate-model systems. These efforts are vital to D-Wave’s roadmap toward a 100,000-qubit annealing system.
D-Wave’s technology is gaining traction across industries. Customers, including E.ON, GE Vernova, Nikon, NTT Data, Sharp, the University of Oxford and North Wales Police, are using Advantage2 and hybrid solutions to solve real-world optimization challenges. The Leap Quantum LaunchPad program, offering three-month trial access to quantum cloud systems, has drawn over 1,300 applications, highlighting strong adoption and D-Wave’s growing ecosystem.
Larger Competitors in the Market
International Business Machines (IBM - Free Report) : It is advancing its quantum leadership through infrastructure and ecosystem initiatives. In June 2025, it announced plans for the world’s first large-scale, fault-tolerant quantum computer at its Yorktown Heights Quantum Data Center. The company is also partnering with Advanced Micro Devices (AMD) to integrate quantum processors with classical supercomputing architectures, thus enhancing practical and scalable quantum solutions.
Honeywell International (HON - Free Report) : Its subsidiary, Quantinuum, raised $600 million in funding, boosting its valuation to $10 billion. Investors include NVIDIA’s (NVDA - Free Report) NVentures, Quanta Computer, QED Investors, JPMorgan Chase and Mitsui. The capital raised will accelerate Quantinuum's development of integrated quantum technologies, encompassing hardware, software, and algorithms. The company is progressing toward the upcoming launch of "Helios," its next-generation quantum computing system expected later this year.
Over the past 30 days, shares of D-Wave have lost 7%.
Image Source: Zacks Investment Research
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 37.5% from the last closing price of $15.42.
Image: Bigstock
QBTS in Focus Amid Quantum Launches, Competition With IBM, HON
Key Takeaways
In the second quarter of 2025, D-Wave Quantum (QBTS - Free Report) reached a key milestone with the launch of its Advantage2 quantum computer, the company’s latest annealing system. Designed to tackle complex problems in optimization, material simulation and artificial intelligence, the Advantage2 processor delivers significant performance improvements over its predecessor, including double the qubit coherence time, a 40% increase in energy scale, and expanded connectivity from 15-way to 20-way. Further, D-Wave’s quantum AI toolkit integrated with PyTorch enables hybrid quantum-classical workflows, including demonstrations like simple image generation, marking a step forward in quantum AI development.
Beyond hardware and AI tooling, D-Wave is investing heavily in scalable quantum architecture and advanced cryogenic packaging. Collaborating with NASA’s Jet Propulsion Laboratory, the company has demonstrated superconducting interconnects between chips, which serve as a foundation for both annealing and gate-model systems. These efforts are vital to D-Wave’s roadmap toward a 100,000-qubit annealing system.
D-Wave’s technology is gaining traction across industries. Customers, including E.ON, GE Vernova, Nikon, NTT Data, Sharp, the University of Oxford and North Wales Police, are using Advantage2 and hybrid solutions to solve real-world optimization challenges. The Leap Quantum LaunchPad program, offering three-month trial access to quantum cloud systems, has drawn over 1,300 applications, highlighting strong adoption and D-Wave’s growing ecosystem.
Larger Competitors in the Market
International Business Machines (IBM - Free Report) : It is advancing its quantum leadership through infrastructure and ecosystem initiatives. In June 2025, it announced plans for the world’s first large-scale, fault-tolerant quantum computer at its Yorktown Heights Quantum Data Center. The company is also partnering with Advanced Micro Devices (AMD) to integrate quantum processors with classical supercomputing architectures, thus enhancing practical and scalable quantum solutions.
Honeywell International (HON - Free Report) : Its subsidiary, Quantinuum, raised $600 million in funding, boosting its valuation to $10 billion. Investors include NVIDIA’s (NVDA - Free Report) NVentures, Quanta Computer, QED Investors, JPMorgan Chase and Mitsui. The capital raised will accelerate Quantinuum's development of integrated quantum technologies, encompassing hardware, software, and algorithms. The company is progressing toward the upcoming launch of "Helios," its next-generation quantum computing system expected later this year.
Read More: Quantum Pact: NVIDIA, Honeywell Raise Stakes for IonQ, Rigetti, D-Wave
Over the past 30 days, shares of D-Wave have lost 7%.
Image Source: Zacks Investment Research
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 37.5% from the last closing price of $15.42.
Image Source: Zacks Investment Research
D-Wave Quantum currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.