D-Wave Quantum Inc. (NASDAQ: QBTS) is making waves in the stock market this week, bucking the broader market downturn with an impressive rally fueled by two major catalysts. Investors are piling into the stock following a groundbreaking quantum computing achievement and a bullish outlook from analysts.
Quantum Computing Breakthrough Sends QBTS Soaring
On Wednesday, D-Wave Quantum announced a significant milestone in quantum computing, leading to a sharp increase in its stock price. A research paper published in the prestigious Science journal detailed how D-Wave’s Advantage2 prototype annealing quantum computer outperformed one of the world’s most powerful classical supercomputers in solving complex magnetic materials simulation problems. This breakthrough has major implications for materials discovery and quantum computing applications, further solidifying D-Wave’s position in the quantum technology landscape.
Following the announcement, trading in QBTS was temporarily halted in the morning session. Once trading resumed, the stock spiked within a range of $5.34 to $6.39 before closing at $5.82, marking an 8% gain for the day.
Blowout Revenue Guidance Amplifies Momentum
On Thursday, D-Wave continued its bullish run after issuing first-quarter revenue guidance that exceeded expectations by at least 292%, according to Finchat-compiled consensus estimates. A key driver of this revenue surge is the sale of an Advantage annealing quantum computer, indicating strong demand for the company’s hardware solutions beyond its core Quantum Computing-as-a-Service (QCaaS) business.
Roth MKM Analyst Lifts Price Target to $10
Adding to the bullish sentiment, Roth MKM analyst Suji Desilva upgraded the stock’s price target from $7 to $10, citing strong revenue guidance, a growing order backlog, and expansion into hardware sales. This revised price target represents a potential upside of approximately 45% from current levels. Roth MKM reiterated its ‘Buy’ rating on QBTS, signaling strong confidence in the stock’s future growth.
Stocktwits Data Shows Explosive Interest in QBTS
Social sentiment surrounding D-Wave Quantum has also seen a remarkable shift. According to Stocktwits data, the sentiment score for QBTS surged to an ‘extremely bullish’ rating of 83/100 from ‘bullish’ just a day prior. Trading activity and message volume skyrocketed, with over 1,675 messages posted in the past 24 hours, reflecting a 406% surge. Watcher count for the stock has also increased by an astonishing 531% over the past year, further indicating a growing retail investor interest.
Bullish Traders Eye a High-Teens Move
With QBTS already gaining nearly 5% in Friday’s premarket session, traders are speculating on further upside, with some predicting a potential move into the high-teens. The stock is currently one of the top five trending tickers on Stocktwits and remains among the top 10 most active stocks.
As momentum builds, all eyes are on D-Wave Quantum as it continues to disrupt the quantum computing industry and attract strong investor interest.
