Key Points

D-Wave shares have climbed with the wider market, supported by Nvidia's fresh Ising AI models and a $100 million government funding grant.
Even after the rally, D-Wave's financial results stay weak, showing just $24.6 million in revenue last year while posting an operating loss over $70 million.
Practical commercial quantum computing remains years off, so the stock holds high speculative risk and could drop sharply if markets turn down.

Quantum stocks appear to be gaining traction again, and D-Wave Quantum stands out as a focused name in the field. Its shares have risen 109 percent over the past two months.

A general market advance has played a role, with the S&P 500 gaining 15.6 percent in the past month and the Nasdaq Composite advancing 23.8 percent, yet specific developments have restored some confidence in the sector.

First, Nvidia introduced Ising, a new set of open-source AI models meant to speed up quantum computing studies. The U.S. Department of Commerce also launched a $2 billion quantum initiative, from which D-Wave will obtain $100 million in support.

The stock now trades just under $30. Does this mark a good entry point?

These developments are positive, yet they do not alter the core outlook in any major way.

Right now D-Wave's results are far from strong, with $12.5 million in sales over the trailing twelve months and a normalized loss exceeding $100 million in that span.

Even so, the company's market value now tops $11 billion. This price reflects substantial optimism. Such pricing could hold if D-Wave achieves major technical progress quickly, but genuine commercial quantum applications are probably many years, perhaps decades, from reality.

Should a broad market pullback occur during that period, investors are likely to exit high-risk names like D-Wave, sending its price lower. Attractive entry points may appear later, so it seems wise to steer clear of the stock at present.

Should you purchase D-Wave Quantum shares today?

Before making any decision on D-Wave Quantum, keep this in mind.

The Motley Fool Stock Advisor team recently named what they view as the 10 strongest stocks for investors to consider now, and D-Wave Quantum did not appear on that list. The ten selections could deliver strong gains over the years ahead.

Recall that Netflix joined the list on December 17, 2004. A $1,000 investment then would be worth $449,393 today. Nvidia joined on April 15, 2005, and the same $1,000 would now equal $1,366,006.

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Johnny Rice holds no positions in the stocks discussed. The Motley Fool maintains positions in and recommends Nvidia. A disclosure policy is in place.

The opinions stated here belong to the author and may not reflect those of Nasdaq, Inc.