D-Wave Quantum's stock (NYSE:QBTS) is pulling back a little in the pre-market, down 1.74% in the early stages of the session after a bullish run that had seen QBTS add 136% in the past month alone. Today's dip comes despite a significant price target increase from Roth Capital .
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Roth Capital's decision to raise its price target on D-Wave Quantum to $50 from $20, reaffirming a “Buy” rating on the shares could yet provide bulls with some confidence. Roth Capital's optimism is fueled by D-Wave's recent acquisition of a new European customer, a deal that incorporates a pathway to a potential hardware sale. This development is seen as a validation of D-Wave's expanding market presence and the growing adoption of its quantum annealing technology
D-Wave's recent financial performance has also contributed to the positive market sentiment. In the first quarter of 2025, the company reported a revenue of $15 million, representing a remarkable 509% year-over-year increase. This surge was primarily driven by D-Wave's first major hardware sale, notably to Germany's Jülich Supercomputing Centre.
The company's net loss narrowed significantly to $5.4 million ($0.02 per share) from $17.3 million ($0.11 per share) in the same period last year. The gross profit also witnessed a substantial increase, reaching $13.9 million, fueled by high-margin system sales. Furthermore, D-Wave's customer base has expanded to 133 clients, including 25 Forbes Global 2000 companies, showcasing growing market traction.
Commitment to Technological Innovation
D-Wave's commitment to technological innovation is also playing a role in its stock performance. The company's introduction of new developer tools to advance quantum AI exploration, including an open-source quantum AI toolkit that integrates with PyTorch, a widely-used machine learning framework, demonstrates its dedication to pushing the boundaries of quantum computing capabilities.
The recent price target increase from Roth Capital, coupled with D-Wave Quantum's improving financial performance and strategic advancements, suggests a positive outlook for the company, yet valuation is very stretched. There is a huge amount factored in as far as future expectations, and the company will need to execute efficiently in order to being to turn the tide on traditional value metrics.Â
