D-Wave Quantum Stock Forecast: Analysts See 76% Upside on Quantum-AI Breakthrough

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•  04 Aug 2025
 

•   QBTS  
   
  +0.88%

D-Wave Quantum stock $QBTS rose by 5% after the company announced a new set of tools that connect quantum computing with artificial intelligence. Unlike hollow marketing announcements, this move could position D-Wave at the center of the next decade’s biggest tech race. The company aims to prove that its quantum computing technology is capable of solving problems that classical computers simply aren’t built to handle.

The new toolkit from D-Wave allows AI developers to use quantum processors instead of traditional computers. The company even demonstrated how simple images can be generated using this technology, as proof that the integration of quantum computing and AI is not just theoretical it's working. The expected outcome: more efficient algorithms, operating at higher speed and with lower energy consumption compared to current methods.

The quantum computing market is heating up faster than it has in years. Investment firm Needham raised its price target for D-Wave from $13 to $20. Meanwhile, Kevin Garigan, an analyst at Rosenblatt, set a target of $30 a 76% potential upside. Other players in the sector, such as IonQ and Rigetti, have also benefited from bullish analyst forecasts.

What differentiates D-Wave from its competitors is its unique technological approach. While companies like IBM are developing gate-based quantum computers, D-Wave focuses on a method called quantum annealing — a technique designed to solve complex optimization problems. Analysts liken the difference to comparing a Formula 1 car to a heavy truck each is built for a different purpose.

D-Wave’s philosophy is simple: don’t wait for the technology to be perfect let customers start using it now. The company already works with commercial clients and is showing measurable results in the field. Unlike others still working on lab experiments, D-Wave aims to deliver real-world value here and now. Garigan described D-Wave as “the most practical way to profit from the quantum revolution,” noting the company’s advantage as an early mover. In emerging technology, those who start early often lead the pack over time.

Garigan’s analysis also points to an expected annual growth rate of 66% for D-Wave over the next five years, a pace that could outstrip the growth rate of the entire quantum computing sector. That means D-Wave could capture a significant market share relative to its size, which is an ideal position for any tech company.

Still, not everyone is convinced by D-Wave’s approach. Jay Gambetta, IBM’s VP of Quantum, claims that only IBM’s architecture can deliver true exponential acceleration over classical computers. According to him, the real question isn’t who is faster, but who can go the distance. In his view, IBM is building a technology that will go far beyond classical computers, not just slightly improve on them.

D-Wave CEO Alan Baratz didn’t stay silent. In response, he pointed out that only D-Wave’s computer has demonstrated actual superiority over classical computers in solving useful problems. “What’s more important?” he asked, “Scientists writing equations on a whiteboard in a side room, or someone delivering real value in the real world?”

Major tech firms are now being forced to decide which quantum technologies to back and the decisions they make today will shape the innovation landscape of the next decade. The key issue isn’t which company has the theoretically best technology, but who can bring their solutions to market in a timely way that delivers immediate business value. D-Wave is betting that customers will prefer working products today, even if they aren’t perfect over futuristic promises that might never materialize.