Jim Cramer Recommends Owning D-Wave Quantum for Its Potential to Rise Significantly

Jim Cramer recommends owning D-Wave Quantum Inc. (NYSE:QBTS) due to its potential for significant price increases based on positive news headlines. He believes the company's quantum computing systems, software, and cloud services offer opportunities in logistics, scheduling, optimization, drug discovery, and more. Cramer has a bullish sentiment on the stock, predicting it could reach $25 if it receives good news. However, he also acknowledges that certain AI stocks offer greater upside potential and carry less downside risk.

D-Wave Quantum Inc. (NYSE: QBTS) has been a focal point in the financial markets this week, following Jim Cramer's recommendation on CNBC's "Mad Money" show. The stock has seen significant price appreciation, with a nearly 14% gain at yesterday's close and a 31.4% increase so far in July [1]. Cramer highlighted QBTS as a compelling buy for investors seeking exposure to the rapidly evolving quantum computing sector.

The company has been making strides in scaling its operations and improving its financial metrics. In the first quarter of 2025, D-Wave posted a remarkable 509% year-over-year revenue jump, driven by a $12.6 million Advantage2 system sale to Germany’s Julich Supercomputing Center. This sale underscores the company's evolving model blending high-value system sales with recurring revenues from its Quantum Computing-as-a-Service platform [1].

Profitability metrics have also improved. D-Wave posted a GAAP gross margin of 92.5%, achieved its lowest net loss since becoming a public company, and cut its adjusted EBITDA loss by 53% year over year, demonstrating meaningful operating leverage as revenues scaled up [1].

In June, D-Wave raised $400 million through an at-the-market equity offering, priced at a 149% premium to its January raise, boosting cash reserves to $815 million. Management calls this the strongest balance sheet in the quantum sector, giving D-Wave ample power for acquisitions, R&D, and cloud expansion [1].

Cantor Fitzgerald analyst Troy Jensen initiated coverage on D-Wave Quantum with an Overweight rating and announced a price target of $20 [2]. This endorsement aligns with Cramer's bullish sentiment, predicting the stock could reach $25 if it receives good news.

While QBTS has seen significant growth, it is essential to consider the broader quantum computing landscape. Competitors such as Quantum Computing Inc. (QUBT) and IonQ (IONQ) are also making strides in the sector. QUBT launched its ISO-certified photonic chip foundry in May 2025, and IonQ accelerated its growth strategy with two major acquisitions in June 2025 [1, 3].

Investors should approach QBTS with a balanced perspective, considering both the potential upside and the inherent risks associated with the quantum computing sector. As Cramer acknowledged, certain AI stocks may offer greater upside potential and carry less downside risk [2].

References:
[1] https://www.nasdaq.com/articles/jim-cramer-fuels-d-wave-what-awaits-qbts-after-31-rally-july
[2] https://www.benzinga.com/analyst-stock-ratings/analyst-color/25/07/46464364/you-can-speculate-with-it-jim-cramer-on-this-financial-stock
[3] https://www.fool.com/investing/2025/07/20/2-top-quantum-computing-stocks-to-buy-in-july/