D-Wave Quantum shares surge 13.32% after hours on Evercore ISI's outperform rating and strategic government focus.

D-Wave Quantum surged 13.32% in after-hours trading following Evercore ISI’s initiation of coverage with an "outperform" rating and a $44 price target (96% upside), alongside a strategic pivot to U.S. government contracts. Evercore highlighted D-Wave’s first-mover advantage as the first commercial quantum computing firm with $830M in R&D funding, now expanding into gate-model systems and establishing a dedicated government solutions unit led by veteran Jack Sears Jr. The company’s Advantage2™ quantum computer is already deployed in Huntsville, Alabama, targeting defense applications, while the analyst cited a potential 12% market share in a $15B–$30B 2035 quantum sector. The move reflects renewed institutional optimism amid a 206% annual stock rally, though execution risks remain tied to hardware costs and ROI demonstration.