Investors should consider pure-play quantum computing companies like D-Wave Quantum (QBTS) as a frontier for exponential value creation. QBTS’s third-quarter earnings performance demonstrates the shift of quantum technology from theory to real business use, with growing revenues and a strong pipeline, positioning it for growth similar to early-stage NVIDIA or Palantir.

D-Wave’s shares have rallied 167.8% YTD, outperforming the industry, sector, and S&P 500. The company’s commercial adoption of its quantum platform across industries like logistics and finance is driving growth. Improvements in technology, like the next-gen annealing systems, enhance its competitive edge in the quantum computing market.

Despite its success, D-Wave faces challenges in achieving operating leverage, with high expenses leading to adjusted EBITDA losses. The company’s cost structure outpaces revenue scale, hindering profitability. While D-Wave’s long-term potential is promising, investors may benefit from waiting for a better entry point due to the current technical setup and operating expenses.

D-Wave Quantum trading below its 50-day moving average but above its 200-day moving average indicates short-term weakness within a positive long-term trend. Investors should exercise patience, as the stock’s broader trend remains positive despite near-term momentum cooling. Waiting for improved margins or stock momentum could lead to a better investment opportunity.

The AI revolution has created millionaires, but lesser-known AI firms solving significant problems may offer more lucrative investments in the future. Investors should look beyond well-known stocks like NVIDIA and Palantir for potential profits. Exploring second-wave AI stocks addressing major global challenges could lead to substantial gains in the coming months and years.

Read more at Nasdaq: QBTS Soars 168% in 2025: Should You Buy for 2026 or Wait for Pullback?