Key Points
The promise of quantum computing has fueled strong investor interest.
Shares of D-Wave Quantum have climbed more than 1,700% over the past year.
Yet the modest company generates only a few million dollars each quarter.
Similar to other quantum computing firms, D-Wave Quantum (NYSE: QBTS) ranks among the strongest stock market performers over the past year. The shares have risen 1,711% as of Aug. 15, driven by excitement for the emerging field even though D-Wave Quantum remains a development-stage business with limited revenue.
Events that boosted interest include President Donald Trump's election victory, which lifted many speculative names, and Alphabet's December announcement that its Willow quantum chip reached a new benchmark by completing calculations that would require a conventional supercomputer 10 septillion years.
Now in 2025 several prominent technology executives, including Nvidia's Jensen Huang and Microsoft's Satya Nadella, have highlighted their progress and offered forecasts about quantum computing's potential impact. Huang initially stated early in the year that practical quantum systems remained 15 years away, yet later revised his view and noted the field is approaching an inflection point.
D-Wave Quantum stands as one of four quantum computing equities drawing market attention. The following sections examine what sets the company apart and whether the shares merit purchase.
Image source: Getty Images.

What is D-Wave Quantum?

D-Wave Quantum sets itself apart from rival quantum computing companies through its emphasis on quantum annealing. The firm claims to be the first to offer commercial-grade annealing quantum systems, which excel at solving optimization challenges.

Its client list includes Mastercard, the accounting firm Deloitte, and steel producer ArcelorMittal. The company has also reported notable technical progress, such as demonstrating quantum supremacy on a practical real-world task in March 2025.

D-Wave Quantum remains a small enterprise. Second-quarter revenue rose 42% to $3.1 million. More telling may be the 93% increase in bookings to $1.3 million, along with more than 100 revenue-generating customers across the prior four quarters.

During the period the company launched its sixth-generation system, the Advantage2 quantum computer, capable of addressing complex problems beyond the reach of classical machines.

On the earnings side the firm posted an adjusted net loss of $25.3 million, yet it holds a strong cash position of $819 million following a $400 million raise in the quarter. Free cash flow usage totaled $36 million through the first half of the year.

Should you buy D-Wave Quantum stock?

After advancing more than 1,700% in twelve months while still posting minimal revenue, D-Wave Quantum trades at a premium valuation. Market capitalization now stands at $5.8 billion, implying a price-to-sales ratio near 200.

Purchasing the shares at present amounts to a speculative wager on quantum computing. Despite more than 25 years in operation and meaningful technical milestones, the company has little financial scale to show. Timing for substantial revenue expansion remains uncertain, and management indicated in the latest report that operating costs will rise alongside additional acquisitions this year.

D-Wave Quantum and its peers also appear to benefit from broad market optimism amid record stock levels.

Given elevated valuations for early-stage names such as D-Wave Quantum and limited visibility into future growth, investors may prefer to await a more attractive entry point or clearer signs of business momentum. Although quantum computing holds promise, meaningful revenue contributions for companies like D-Wave Quantum likely remain years away.

Should you invest $1,000 in D-Wave Quantum right now?

Before purchasing shares consider the following:

The Motley Fool Stock Advisor team recently named the 10 best stocks for investors to buy now, and D-Wave Quantum did not appear on that list. The selected names could deliver substantial gains over the coming years.

For context, when Netflix joined the list on December 17, 2004, a $1,000 investment would now be worth $671,466. Likewise, Nvidia's addition on April 15, 2005, would have turned $1,000 into $1,115,633.

Stock Advisor's overall average return reaches 1,077%, far outpacing the S&P 500's 185% over the same span. The latest top-10 list is available upon joining Stock Advisor.

Jeremy Bowman holds shares of Nvidia. The Motley Fool holds positions in and recommends Alphabet, Mastercard, Microsoft, and Nvidia. The Motley Fool recommends long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. A disclosure policy applies.

The views expressed are those of the author and do not necessarily reflect those of Nasdaq, Inc.