D-Wave Quantum (QBTS) Rallies 11.91% on Fed Rate Cut, New Advantage2 Launch

D-Wave Quantum (QBTS) surged 11.91% on Thursday, extending its winning streak to seven consecutive days with a cumulative gain of 67.58% over the period. The stock reached an intraday high of $28.35, its highest level since September 2025, driven by renewed investor optimism in the quantum computing sector. The rally reflects a confluence of macroeconomic easing and strategic momentum from the company.

Key tailwinds include the Federal Reserve’s 25-basis-point rate cut in September 2025, which has invigorated appetite for high-growth, speculative assets. D-Wave, as a pioneer in commercial quantum computing, benefits from reduced financing costs and enhanced liquidity, critical for a sector where valuations hinge on long-term adoption potential. Analysts highlight that the Fed’s dovish stance, with two additional cuts anticipated by year-end, has bolstered capital inflows into the stock.

The company’s recent product innovations and global visibility further reinforced its position. The launch of the Advantage2 system—a hybrid cloud/on-premises platform with improved qubit connectivity—addresses key limitations in quantum problem-solving efficiency. High-profile deployments at events like Qubits Japan 2025 and collaborations with industry leaders, including Japan Tobacco and NTT DOCOMO, showcased tangible applications in drug discovery and network optimization. These developments have shifted perceptions of quantum computing from theoretical to practical, attracting both institutional and retail investors.

Institutional confidence has grown, with major investors like Vanguard Group increasing holdings by 58.5%. Analyst ratings also turned bullish, with firms like Rosenblatt Securities upgrading QBTS to “Buy” and setting a $30.00 price target. However, valuation concerns persist, as the stock trades at a forward price-to-sales ratio of 236.93X, well above sector averages. While this premium reflects growth expectations, analysts caution that sustained revenue expansion and profitability will be critical to justify the elevated multiple.

Despite the bullish momentum, challenges remain. The company reported a quarterly loss of $0.08 per share, and insider sales by directors and the CFO have raised questions about internal valuation skepticism. Additionally, competition from peers like IonQ and Rigetti, who are securing government contracts and partnerships, underscores the need for D-Wave to maintain technological differentiation. The stock’s future trajectory will depend on its ability to scale commercial adoption and deliver on long-term roadmaps while navigating a capital-intensive industry landscape.