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How Could Federal Backing Advance D-Wave's Quantum Efforts?
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Key Takeaways
QBTS signs $100M LOI under CHIPS Act, signaling U.S. Commerce Department interest in its quantum tech.
The funding would back D-Wave's R&D facility in Florida, Connecticut and Canada to scale quantum systems.
QBTS aims for 100,000-qubit annealing and 10,000-qubit gate-model systems for AI and chemistry.
D-Wave Quantum (QBTS - Free Report) , or D-Wave, received a major boost last month that could advance its superconducting annealing and gate-model technology development. The company signed a Letter of Intent (“LOI”) for $100 million in proposed funding under the U.S. CHIPS and Science Act. The LOI signals federal interest in D-Wave’s annealing and gate-model quantum computing technologies and their potential economic impact. If the award is finalized, the company would issue $100 million in shares of its common stock to the U.S. Department of Commerce.
The funding is set to support D-Wave’s work at its forthcoming research and development (R&D) facility in Boca Raton, FL, as well as its R&D centers in New Haven, Connecticut and Burnaby, BC, Canada. Specifically, it aims to help speed up the delivery of advanced superconducting quantum computers, including a 100,000-qubit annealing system and a 10,000-qubit gate-model system.
While D-Wave’s annealing quantum computers are already commercial, its gate-model system is expected to reach commercial viability with 10,000 physical qubits, enabling 100 logical qubits.
With the larger-scale and higher coherence annealing quantum computing systems, the company expects stronger performance gains for solving computational problems in optimization, materials simulation, blockchain and artificial intelligence applications. The larger-scale dual-rail gate-model quantum computer will allow dozens of logical qubits, providing a robust application development platform for a broad range of quantum chemistry and quantum artificial intelligence use cases.
Taken together, these efforts are aimed at building a more resilient, end-to-end quantum computing ecosystem, in line with the CHIPS and Science Act objectives to build domestic capacity in critical technologies and establish a robust and reliable pipeline for the components required to bring state-of-the-art quantum computing systems into the market.
Latest Development From QBTS’ Peers
IBM (IBM - Free Report) has announced an expanded collaboration with ServiceNow to address two of the biggest barriers blocking enterprise AI at scale: the AI-ready data problem and the legacy application layer. The partnership aims to combine IBM’s AI, data and automation capabilities with the ServiceNow AI Platform to help enterprises break through outdated systems and put their data to work for AI.
IonQ (IONQ - Free Report) announced Clavis XG Multiplex, a new addition to its Clavis XG Quantum Key Distribution (QKD) portfolio to make quantum security more practical and deployable across metropolitan fiber networks. The system enables high-performance, physics-based key distribution on a customer’s existing network infrastructure without requiring operators to redesign, isolate or dedicate optical networks for quantum security. IONQ also opened a new laboratory suite in Boulder, CO, which will house Quantum Computing R&D and semiconductor chip testing facilities.
QBTS’ Price Performance, Valuation & Estimates
Year to date, QBTS shares have plunged 11.5%, underperforming the industry’s 11.6% fall.
Image Source: Zacks Investment Research
D-Wave is trading at a forward, two-year, price/sales (P/S) of 132.67X, higher than its median and industry average.
Image Source: Zacks Investment Research
Here’s how estimates for D-Wave’s 2026 and 2027 loss per share are shaping up.
View the Zacks #1 Rank List
Image: Bigstock
How Could Federal Backing Advance D-Wave's Quantum Efforts?
Key Takeaways
D-Wave Quantum (QBTS - Free Report) , or D-Wave, received a major boost last month that could advance its superconducting annealing and gate-model technology development. The company signed a Letter of Intent (“LOI”) for $100 million in proposed funding under the U.S. CHIPS and Science Act. The LOI signals federal interest in D-Wave’s annealing and gate-model quantum computing technologies and their potential economic impact. If the award is finalized, the company would issue $100 million in shares of its common stock to the U.S. Department of Commerce.
The funding is set to support D-Wave’s work at its forthcoming research and development (R&D) facility in Boca Raton, FL, as well as its R&D centers in New Haven, Connecticut and Burnaby, BC, Canada. Specifically, it aims to help speed up the delivery of advanced superconducting quantum computers, including a 100,000-qubit annealing system and a 10,000-qubit gate-model system.
While D-Wave’s annealing quantum computers are already commercial, its gate-model system is expected to reach commercial viability with 10,000 physical qubits, enabling 100 logical qubits.
With the larger-scale and higher coherence annealing quantum computing systems, the company expects stronger performance gains for solving computational problems in optimization, materials simulation, blockchain and artificial intelligence applications. The larger-scale dual-rail gate-model quantum computer will allow dozens of logical qubits, providing a robust application development platform for a broad range of quantum chemistry and quantum artificial intelligence use cases.
Taken together, these efforts are aimed at building a more resilient, end-to-end quantum computing ecosystem, in line with the CHIPS and Science Act objectives to build domestic capacity in critical technologies and establish a robust and reliable pipeline for the components required to bring state-of-the-art quantum computing systems into the market.
Latest Development From QBTS’ Peers
IBM (IBM - Free Report) has announced an expanded collaboration with ServiceNow to address two of the biggest barriers blocking enterprise AI at scale: the AI-ready data problem and the legacy application layer. The partnership aims to combine IBM’s AI, data and automation capabilities with the ServiceNow AI Platform to help enterprises break through outdated systems and put their data to work for AI.
IonQ (IONQ - Free Report) announced Clavis XG Multiplex, a new addition to its Clavis XG Quantum Key Distribution (QKD) portfolio to make quantum security more practical and deployable across metropolitan fiber networks. The system enables high-performance, physics-based key distribution on a customer’s existing network infrastructure without requiring operators to redesign, isolate or dedicate optical networks for quantum security. IONQ also opened a new laboratory suite in Boulder, CO, which will house Quantum Computing R&D and semiconductor chip testing facilities.
QBTS’ Price Performance, Valuation & Estimates
Year to date, QBTS shares have plunged 11.5%, underperforming the industry’s 11.6% fall.
Image Source: Zacks Investment Research
D-Wave is trading at a forward, two-year, price/sales (P/S) of 132.67X, higher than its median and industry average.
Image Source: Zacks Investment Research
Here’s how estimates for D-Wave’s 2026 and 2027 loss per share are shaping up.
Image Source: Zacks Investment Research
D-Wave currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.