D-Wave Quantum (QBTS) Soars 23.02% to 2025 High on Strategic Shift, Quantum Computing Momentum

D-Wave Quantum (QBTS) surged 23.02% on Monday, reaching its highest level since October 2025, with an intraday gain of 27.10%. The stock’s rally reflects renewed investor enthusiasm for quantum computing, a sector marked by speculative momentum and high valuation multiples. Despite a recent quarterly revenue of $3.05 million, the company’s shares trade at a price-to-sales ratio of 1,279.8x, underscoring the market’s focus on long-term potential over near-term profitability.

The stock’s meteoric rise has been fueled by D-Wave’s strategic shift toward gate model quantum computing, a more versatile technology compared to its traditional quantum annealing approach. This pivot aims to broaden applications across industries such as logistics, agriculture, and law enforcement. Recent partnerships with entities like North Wales Police and Verge Ag have demonstrated practical use cases, including crime prediction and resource optimization, lending credibility to the company’s commercial viability.

However, D-Wave’s financials remain a point of contention. While revenue grew 42% year-over-year, the company’s adjusted EBITDA losses widened by 44%, highlighting the challenges of scaling R&D and operational costs. Critics, including short-sellers like Kerrisdale Capital, argue that the stock’s valuation relies heavily on speculative growth narratives rather than proven revenue streams. Analysts caution that a 40% correction could occur if growth expectations fail to materialize.

The competitive landscape adds further complexity. Rivals in the quantum sector, such as Rigetti Computing, have also seen rapid valuation gains, creating a crowded market where differentiation is difficult. D-Wave’s ability to secure government and enterprise contracts—such as Rigetti’s recent Air Force deal—will be critical to maintaining its edge. Meanwhile, its $819.31 million in liquid assets provides flexibility for innovation but does not offset negative EBIT and EBITDA margins.

Investor sentiment remains tied to the sector’s collective momentum, with quantum computing stocks often moving in unison. However, as the industry matures, scrutiny of individual company fundamentals is expected to intensify. For D-Wave, the path forward hinges on converting partnerships into recurring revenue and demonstrating financial efficiency. While technological advancements are promising, the sustainability of its valuation will ultimately depend on its ability to balance innovation with profitability in a rapidly evolving market.