D-Wave Faces Threat from IBM and Google in Quantum

D-Wave Quantum QBTS shares have dipped 0.9% in the past month due to competition from tech giants IBM and Alphabet, who are advancing in gate-based quantum computing. D-Wave reported a 509% revenue surge in Q1 2025 but currently trades 20% below its peak. Analysts are cautious about its scalability compared to IBM and Google.

IBM unveils its “Starling” roadmap to build a fault-tolerant quantum supercomputer by 2029, while Google showcases its “Willow” chip with reduced error rates. IBM and Google’s focus on gate-based quantum platforms could challenge D-Wave’s annealing approach, potentially relegating it to a niche player in the quantum computing industry.

D-Wave’s stock is trading at a high forward price-to-sales ratio of 144.4X, surpassing its sector median of 77.54X. With a Zacks Rank #3 (Hold), investors are advised to exercise caution. Analysts suggest monitoring the evolving quantum landscape dominated by IBM and Google, potentially impacting D-Wave’s market position and growth prospects.

Read more at Nasdaq: D-Wave Slips as IBM and Google Threaten Its Quantum Edge: What Now?