Investors are flocking to D-Wave Quantum stock as quantum computing gains popularity

From Nasdaq: 2025-07-02 11:27:00

Investors are seeing a surge in tech sectors like semiconductors and cloud computing due to growing interest in AI. Quantum computing stocks are now entering the scene as a new trend within the AI revolution, with D-Wave Quantum stock soaring 67% this year.

Although quantum computing is not yet widely commercialized, its potential benefits over traditional computers have caught the attention of tech enthusiasts. McKinsey & Company estimates that quantum computing could generate $1.3 trillion in economic value by the mid-2020s.

D-Wave Quantum has shown impressive growth in revenue and cash balance recently, with first-quarter revenue soaring by 509% year over year. However, the company’s small revenue base and high valuation make it a speculative investment at this time.

With a market capitalization of $4.5 billion and a price-to-sales ratio of about 150, D-Wave Quantum’s valuation appears unsustainable. Management’s consideration of raising an additional $400 million through stock issuance suggests they may see the stock as overbought.

The Motley Fool’s Stock Advisor team does not recommend investing in D-Wave Quantum at this time. They have identified 10 other stocks with greater potential for significant returns. Investors should consider more established companies in the AI landscape for investment opportunities.



Read more at Nasdaq: Meet the Monster Quantum Computing Stock That Continues to Crush IonQ, Rigetti Computing, and Nvidia