D-Wave Quantum Inc. (NYSE: QBTS) is making waves in the stock market after its latest earnings report shattered expectations. The company’s stock surged following strong Q4 results, record-breaking bookings, and a bold forecast for Q1 2025 that has investors excited about its future.
Q4 Earnings: Big Wins for D-Wave
D-Wave’s fourth-quarter earnings for 2024 came in stronger than expected, with revenue reaching $2.3 million, slightly above analyst predictions of $2.2 million. While the company reported a net loss of eight cents per share—higher than the anticipated six-cent loss—the real highlight was the incredible increase in bookings.
Bookings in Q4 skyrocketed to $18.3 million, marking an astonishing 502% year-over-year growth. For the entire fiscal year, bookings totaled $23.9 million—an increase of 128% from 2023. This surge suggests a growing demand for D-Wave’s quantum computing technology and its potential real-world applications.
Quantum Supremacy: A Game-Changer
One of the biggest reasons behind the stock surge? D-Wave’s recent claim of achieving “quantum supremacy.”
The company’s Advantage2 system, powered by a quantum annealing chip, solved a highly complex simulation problem in just 20 minutes. To put that into perspective, one of the world’s fastest supercomputers would have needed nearly a million years to complete the same task!
CEO Alan Baratz called this achievement the “holy grail for quantum computing,” signaling a major step forward in the industry. If verified, this could give D-Wave a massive competitive edge over rivals like Google and IBM.
Q1 2025 Forecast: A Bold Prediction
Looking ahead, D-Wave has issued an ambitious forecast for Q1 2025, expecting revenue to surpass $10 million. This projection is particularly exciting because it exceeds the company’s total revenue for all of 2024. A major factor in this growth? The upcoming sale of an Advantage quantum computer, which could bring in substantial revenue.
Investors have taken notice, and the stock has been on a sharp upward trajectory.
Wall Street’s Reaction & Price Target Upgrades
Wall Street analysts are turning bullish on D-Wave. Investment firm Piper Sandler recently increased its price target for the company from $2.50 to $8—a clear sign of growing confidence in its future.
Unlike competitors focused on universal quantum computing, D-Wave specializes in quantum annealing, which is proving to have real-world commercial applications. This unique approach could help D-Wave carve out a leadership position in the industry.
The Bottom Line
D-Wave Quantum’s stock surge is no fluke. Between its record-breaking bookings, quantum supremacy breakthrough, and a promising revenue forecast for Q1, the company is rapidly positioning itself as a key player in the quantum computing revolution.
With more investors flocking to quantum stocks, D-Wave could be on the verge of something massive. The question now is: how high can it go?
