D-Wave Quantum (QBTS) Descending Wedge Breakout and Strategic Partnerships Signal a Buy Below $14.70

D-Wave Quantum (QBTS) is positioned at a critical inflection point, with its shares hovering near $7.34 as of June 19, 2025, and its technical pattern and strategic partnerships suggesting a potential breakout. The company's deepening collaborations with industry leaders like Aramco and the University of Southern California (USC), combined with surging revenue growth and a compelling technical setup, make QBTS a compelling buy for investors willing to dip below $14.70—a key resistance level. Here's why the time to act is now.

Technical Setup: The Descending Wedge Breakout

The stock's recent price action has formed a descending wedge pattern, a classic consolidation formation that often precedes a sharp upward breakout. The descending wedge is characterized by narrowing price swings and declining resistance levels, typically signaling a pause before a renewed upward move.

Key observations:
- Pattern Confirmation: QBTS has been consolidating within a descending wedge since mid-May 2025, with the lower boundary near $6.10 and the upper boundary declining from $8.09 to $7.70.
- Volume Surge: On June 19, trading volume spiked to 41.38M shares, a 15% increase from June 18, suggesting accumulating buying pressure as the stock approached the upper boundary of the wedge.
- Breakout Target: A sustained close above $7.70 (the wedge's upper trendline) could trigger a rally toward the $14.70 resistance level, which has been a key psychological barrier in prior quarters.

Strategic Partnerships: Fueling Growth and Credibility

QBTS's partnerships with Aramco and USC are not just academic collaborations—they're proof points of the company's leadership in quantum computing's most promising applications.

Aramco: Quantum-Driven Geophysical Breakthroughs

D-Wave's collaboration with Aramco has yielded tangible results in quantum-enhanced seismic imaging, a critical tool for oil and gas exploration. Using D-Wave's Advantage2 system, Aramco's researchers have:
- Processed tens of gigabytes of seismic data, with plans to tackle terabyte-scale datasets in 2025.
- Achieved 20x faster time-to-solution for optimization problems compared to classical systems.
- Demonstrated quantum supremacy in simulating magnetic materials, a milestone published in Science.

This partnership not only secures recurring revenue but also positions QBTS as a critical partner in the energy sector's digital transformation.

USC: A Hub for Quantum Innovation

The USC partnership, renewed in 2024, has become a cornerstone of QBTS's ecosystem:
- Hosted the first U.S.-based D-Wave Advantage system since 2022, solving 25 million customer problems to date.
- Advanced research in quantum annealing error correction and AI-driven drug discovery, with applications for Japan Tobacco and Ford Otosan.
- Supported quantum education initiatives, ensuring a pipeline of talent for the growing quantum workforce.

These collaborations underscore QBTS's ability to monetize its technology across industries, from logistics to national defense.

Revenue Growth and Financial Momentum

QBTS's financials are accelerating:
- Q1 2025 Revenue: $15 million, a 509% year-over-year increase, driven by system sales to institutions like the Jülich Supercomputing Centre.
- Gross Margin: 92.5%, reflecting the high profitability of quantum system sales.
- Cash Reserves: $304 million as of March 2025, enabling R&D investment and scaling operations.

Analysts project 183% revenue growth in 2026, with QBTS targeting $50 million in annual revenue by 2027—a realistic goal given its expanding client base and hybrid quantum-classical tools.

Industry Catalysts: Quantum Computing's Tipping Point

The quantum computing sector is entering its productivity phase, with enterprises like Ford Otosan and Japan Tobacco demonstrating quantum's real-world value. QBTS's leadership in quantum annealing—a niche but commercially viable approach—gives it an edge over broader but less application-focused competitors.

Investment Thesis: Buy the Dip Below $14.70

QBTS is primed for a sustained rally, driven by:
1. Technical Breakout: A close above $7.70 could catalyze a move toward $14.70, with strong support at $6.10.
2. Strategic Momentum: Partnerships with Aramco and USC validate QBTS's commercial viability.
3. Analyst Support: A Zacks Rank #2 and recent analyst upgrades (e.g., Cowen's $25 price target) reflect growing confidence.

Action Items:
- Buy: Accumulate positions on dips below $7.30, with a target of $14.70.
- Hold: Retain positions above $6.10, with a stop-loss below $5.70.

Conclusion

D-Wave Quantum (QBTS) is a rare combination of technical precision and strategic execution. With a descending wedge breakout looming and partnerships that are delivering quantum's promised value, QBTS is a buy at current levels. Investors should act swiftly—this is a company poised to lead the quantum revolution.