RGTI Jumps after Wedbush Upgrade, QBTS Stock Taps $20 on D-Wave and Nasdaq Verafin Partnership to Detect Financial Crime
Quantum stocks have started August on firmer footing, but the latest rebound in Rigetti Computing and D-Wave Quantum does little to erase concerns surrounding stretched valuations, limited revenues and the long road toward commercial profitability.
Quick overview
- Quantum stocks, including Rigetti Computing and D-Wave Quantum, have rebounded in August after a sharp correction in July, but concerns about valuations and profitability persist.
- D-Wave's recent partnership with Nasdaq Verafin aims to enhance fraud detection using quantum-hybrid applications, although the commercial impact remains uncertain.
- Rigetti has received a positive outlook from Wedbush, which initiated coverage with an Outperform rating and a $40 price target, emphasizing technological fidelity.
- Despite recent gains, the quantum sector faces ongoing challenges, including a gap between market valuations and revenue, as well as sensitivity to broader technology market trends.
Quantum stocks have started August on firmer footing, but the latest rebound in Rigetti Computing and D-Wave Quantum does little to erase concerns surrounding stretched valuations, limited revenues and the long road toward commercial profitability.
RGTI and QBTS Reclaim Some Lost Ground
Quantum computing stocks have staged a notable rebound in recent sessions after suffering a sharp correction in July. Rigetti Computing (RGTI) and D-Wave Quantum (QBTS) both jumped more than 10% on Monday, giving the sector a stronger start to August.
The recovery comes after significant selling pressure pushed RGTI below the $15 level and sent QBTS below the psychologically important $20 mark, with D-Wave trading near $16 lows.
The latest bounce has lifted QBTS back above $20, while RGTI has reclaimed the $15 area. However, investors should be careful about interpreting the move as evidence that the broader correction is over.
The quantum sector remains highly sensitive to changes in risk appetite, particularly when technology and semiconductor shares come under pressure.
D-Wave Gains From Financial Crime Partnership
The latest strength in QBTS stock is partly linked to D-Wave’s work with Nasdaq Verafin to develop quantum-hybrid applications for financial crime detection.
The initiative is initially focused on a proof of concept designed to improve fraud detection and anti-money-laundering models. The objective is to identify complex patterns across large datasets while potentially reducing false positives and improving risk identification.
The technology could eventually have applications in large-scale AML network analysis and the detection of unusual account activity.
However, the commercial significance of the project remains something investors will need to monitor. A proof of concept is an encouraging technological development, but it does not automatically translate into substantial near-term revenue.
Wedbush Turns More Positive on Rigetti
Rigetti has also received a boost after Wedbush initiated coverage with an Outperform rating and a $40 price target.
Wedbush highlighted technological fidelity rather than simply qubit count as an important milestone for Rigetti during 2026. The company’s Cepheus-1-108Q system, built from twelve 9-qubit chiplets, became generally available during the first quarter through Rigetti Quantum Cloud Services and platforms including Amazon Braket, Microsoft Azure Quantum and qBraid.
Management is targeting approximately 99.5% median two-qubit gate fidelity by year-end, while prototypes have reportedly reached 99.9%.
Wedbush expects fourth-quarter 2026 revenue of $14.8 million and full-year revenue of approximately $30.5 million. Rigetti’s first-quarter 2026 revenue also increased sharply year over year, although the comparison was made against a relatively small base.
That remains an important consideration. Strong percentage growth can look impressive while the underlying revenue base remains modest.
The Downtrend Is Back On
Shares of D-Wave Quantum were on a downward trajectory until October but reversed back then and fall below $13 in late March. However we saw a rebound off the 100 SMA in green in April which revived again in May.
QBTS Chart Weekly – The 50 SMA Turns into Resistance
After a brief recovery above $30, the stock came once again come under pressure in June, continuing the downtrend that has seen it decline nearly 75% from its October peak and is falling low $16 lows last week. But the 100 SMA held as support again and we has seen a rebound to $20. Meanwhile the RGTI stock couldn’t climb above $30 and also reversed down in June, slipping below the 50 SMA, and tested the 100 weekly SMA at $13 lows and climbed above $16 again.
RGTI Chart Weekly – Testing the 200 SMA
Semiconductor Weakness Remains a Threat
The quantum rebound is occurring against a difficult backdrop for the broader technology sector.
Renewed weakness in semiconductor shares recently pushed South Korea’s KOSPI sharply lower and sent Japan’s Nikkei 225 down more than 2%. Selling subsequently spread into other markets, affecting memory manufacturers, technology infrastructure companies and other high-growth stocks.
Even some major chipmakers experienced negative market reactions despite delivering strong results.
That environment matters for quantum stocks because investors often treat the sector as a high-risk extension of the broader technology trade. When market participants reduce exposure to speculative growth companies, quantum shares can experience disproportionately large declines.
Valuations Remain Difficult to Ignore
The biggest concern remains the gap between market valuations and current commercial revenue.
D-Wave delivered revenue growth of 179% during 2025, but annual revenue was only around $25 million. That highlights how early the commercial quantum industry remains.
Rigetti faces a similar challenge. The company continues to announce technological advances and strategic partnerships, including its expanded collaboration with HPE and the Pittsburgh Supercomputing Center on hybrid quantum-classical computing infrastructure.
Yet investors are increasingly demanding more than technological announcements. They want evidence that these developments can eventually produce sustainable revenue, stronger cash flow and a credible path toward profitability.
Government Support Is Not Enough
Government funding has also become a less powerful catalyst for quantum stocks.
D-Wave secured a $1.56 million U.S. National Science Foundation grant, while Rigetti could potentially receive up to $100 million under the CHIPS Act. However, Rigetti’s potential funding remains linked to development milestones and is based on a non-binding letter of intent.
That distinction is important.
Markets are becoming increasingly selective about the difference between potential government support and guaranteed commercial revenue.
Conclusion: Rebound Does Not Remove the Risk
The recent recovery in RGTI and QBTS provides some relief after July’s heavy selling, but the underlying challenges facing quantum stocks remain.
Technological progress is continuing, partnerships are expanding and commercial applications are beginning to emerge. Nevertheless, valuations remain demanding relative to current revenues, while profitability and large-scale adoption are still some distance away.
For now, the August rebound should therefore be viewed with some caution. If technology stocks regain momentum, quantum shares could extend their recovery. But another deterioration in risk appetite could quickly expose the sector’s vulnerabilities.
The long-term potential of quantum computing remains significant, but investors are increasingly asking a more difficult question: when will that technological potential translate into revenues large enough to justify today’s valuations?
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