D-Wave Quantum Leads After Profit-Taking – QBTS Stock Breaks $40 Milestone
Despite doubters, QBTS computer shares are once again on the rise as investors rekindle their interest in one of the market's most...
Quick overview
- Quantum computing stocks, led by D-Wave Quantum Inc., have surged over 8% recently, with QBTS climbing nearly 19% intraday.
- D-Wave's remarkable rise from a penny stock to a multi-billion-dollar company has been fueled by technological advancements and increased government funding.
- Despite the excitement, analysts express caution over high valuations and potential profit-taking, with a key support level identified at $20.
- D-Wave is expanding internationally and enhancing its quantum technology offerings, aiming to solidify its position in the competitive landscape.
Despite doubters, QBTS computer shares are once again on the rise as investors rekindle their interest in one of the market’s most promising growth stories for 2025.
Quantum Rally Reignites
After a short pause, quantum computing stocks stormed higher to start the week. The sector climbed more than 8% on Monday, while D-Wave Quantum Inc. (NASDAQ: QBTS) surged nearly 24% intraday as renewed buying erased last week’s profit-taking dip.
The stock was once again flirting with record highs near $40—just below its all-time peak from last Wednesday—and momentum pushed it to a decisive breakout, reaching $41. Year-to-date, QBTS has skyrocketed 325%, and over the past 12 months, its share price has risen an astonishing 3,945%, propelling its market capitalization to roughly $14.07 billion.
From Penny Stock to Market Phenomenon
D-Wave’s transformation from a penny stock into a multi-billion-dollar quantum powerhouse stands as one of the most remarkable runs in recent memory. From just $1 in late 2024 to $27.70 by September 2025, the rally—over 2,600% in less than a year—has captivated both retail traders and institutional investors.
Several forces have fueled this ascent: a string of technological breakthroughs, increased U.S. government funding for quantum research, and a speculative frenzy reminiscent of early AI-stock mania.
Still, last week’s pullback reflected a healthy bout of profit-taking and growing caution over overheated valuations. Analysts now view the $20 level as key technical support should the rally face renewed pressure.
Valuation Jitters and Policy Tailwinds
The rapid surge in quantum stocks has also drawn skepticism. Many market participants caution that the rally could be overextended, with rising short interest signaling that some traders are positioning for a correction.
Despite the exuberance, D-Wave’s fundamentals remain a blend of promise and risk. Its recent capital raise bolstered cash reserves, but its sky-high valuation leaves little margin for error if growth slows.
Adding intrigue, a CyberScoop report revealed that the Trump administration may expand its national quantum policy framework, including measures to safeguard U.S. infrastructure from quantum-enabled cyber threats. Such a move could reinforce the strategic importance of companies like D-Wave within the broader tech-security landscape.
Technical Strength Still Intact
From a technical perspective, D-Wave’s chart continues to show resilience. The stock has consistently rebounded off its 20-day Simple Moving Average (SMA)—a trend that underscores persistent speculative demand even amid volatility.
QBTS Chart Weekly – The 20 SMA Held As Support
In early September, two bullish doji candlesticks appeared following a soft August and disappointing Q2 results. This setup preceded a 75% rally in two weeks, showcasing D-Wave’s trademark volatility and appeal among short-term traders. The rally has resumed today, and QBTS has broken the $40 level.
Explosive Growth, Lingering Losses
While growth is impressive, profitability remains elusive for D-Wave and the broader quantum sector. In its latest quarter, the company reported:
- Revenue: $3.1 million (up 41% year-over-year, beating the $2.55 million consensus)
- Earnings per share: –$0.08 (missing estimates by $0.03)
- Return on equity: –118.87%
- Net margin: –1,263.92%
These figures highlight the challenge of scaling commercial quantum technology profitably. Analysts expect a full-year loss of –$0.41 per share, but many remain optimistic that rising enterprise demand will narrow losses in coming quarters.
Strategic Expansion and Global Push
Looking forward, D-Wave is accelerating its international expansion to strengthen its technological and commercial lead. The company recently announced its first Qubits Japan 2025 user conference in Tokyo, marking an 83% year-over-year increase in Asia-Pacific bookings.
D-Wave also unveiled its Advantage2 system, a next-generation quantum platform boasting 4,400 qubits, designed to enhance computational power for enterprise clients. These initiatives signal a continued commitment to scaling real-world quantum applications—an essential step as competitors race to commercialize their own systems.
Outlook: Momentum Meets Caution
The quantum sector’s resurgence reflects a renewed appetite for innovation-driven growth, but valuation pressures remain a constant shadow. For now, bullish momentum appears intact, with D-Wave positioned as the flagship name in quantum computing’s next frontier.
If the stock manages to break cleanly above $40, it could invite another wave of speculative inflows. But for investors, the challenge will be distinguishing between sustainable technological progress and short-term euphoria in a market still defined by extremes.
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
Save