Shares of quantum computing specialist D-Wave Quantum are extending a significant recovery rally, posting substantial gains once again. The stock advanced approximately 9% in Friday’s session, building on a jump of more than 14% the previous day. This momentum has investors questioning whether a sustained trend reversal is underway following a recent correction. The current buying pressure appears driven by an exceptionally bullish initiation report from investment bank Evercore ISI, which has bolstered sector confidence.
Fundamental Performance and Geopolitical Catalysts
Beyond analyst sentiment, concrete operational results and broader geopolitical developments are supporting the share price advance. Commentary from Nobel laureate John Martinis regarding a tight technological race between the U.S. and China has fueled speculation about increased government investment in the sector. D-Wave has already taken strategic action, establishing a dedicated business unit for U.S. government contracts on December 2.
The company’s latest financial metrics provide a solid foundation for the optimistic narrative:
* Revenue Growth: For the third quarter of fiscal 2025, revenue doubled year-over-year to $3.74 million, surpassing expectations.
* Profitability: The gross margin saw marked improvement, rising to 71.4%.
* Financial Strength: D-Wave holds over $836 million in cash reserves, the highest level in its history.
Should investors sell immediately? Or is it worth buying D-Wave Quantum?
Evercore ISI Initiates with High Conviction
In a significant sector move, Evercore ISI has commenced coverage of D-Wave Quantum with an “Outperform” rating. Analyst Mark Lipacis issued a price target of $44 per share, implying an upside potential of roughly 54% from the prior closing price. This report marks Evercore’s first coverage of a quantum computing company. Lipacis emphasized in his analysis that investors could benefit from D-Wave on multiple fronts.
This new assessment joins a growing chorus of positive analyst commentary. Previously, both Cantor Fitzgerald and Canaccord Genuity raised their price targets to $40 and $41, respectively. The broader market consensus now clearly leans toward a buy recommendation.
Looking Ahead to 2026
The next major event for investors is the “Qubits 2026” user conference, scheduled for January 27-28 in Florida. Market observers anticipate gaining further insight into the company’s technology roadmap and the commercialization path for its Advantage2 systems. Analysts project revenue for fiscal 2025 to reach approximately $25.5 million, which would represent growth of 188%. Despite ongoing net losses, the aggressive scaling of the business remains the primary driver behind a valuation that now approaches $10 billion.
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