Rigetti and D-Wave Just Got $100 Million Each. 1 Quantum Stock Has More Upside From Here.
D-Wave received $100 million in funding to advance its quantum computing technology and commercial applications. The company reported a 120% increase in its sales pipeline and aims to deliver 2-3 annealing systems annually, each generating $20-40 million. Despite being unprofitable, with a Q2 adjusted EBITDA loss of $37.1 million, D-Wave has a growing commercial pipeline and a consensus 'Strong Buy' rating from analysts, with an average price target of $34.81.
How this was made
The 30-second read
Why it matters
The capital infusion strengthens D-Wave's cash position and could accelerate its annealing and gate‑model product pipelines, supporting higher bookings and revenue growth.
Market read
First‑report $100 M funding for a listed quantum‑computing company, likely to affect its stock and the sector.
What to watch
Potential competition from larger cloud providers and the risk that the funding may not translate into commercial revenue quickly.
Background
D-Wave Quantum Inc. (QBTS) and private Rigetti each received $100 million from the U.S. Department of Commerce to advance quantum‑computing technology.
Ticker impact
D-Wave received a $100 million Department of Commerce award to fund technology development and commercial expansion.
Short-term upside as investors price in the new capital and longer-term upside if bookings materialize.
A fresh $100M government award is a material, first‑report event for a listed quantum‑computing firm.
Market effects
May lift sentiment for the broader quantum‑computing and advanced‑technology sector.
Positive for U.S. tech stocks benefiting from federal R&D funding.
Highlights U.S. leadership in quantum research, could attract foreign investor interest.
Counterpoint
The award does not address D-Wave's ongoing profitability challenges; the stock may remain volatile.
Key entities
- companyD-Wave Quantum Inc.
Public quantum‑computing firm receiving $100 M government award.
- companyRigetti Computing
Private quantum‑computing firm also receiving $100 M award.
