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May 19 - D-Wave Quantum (NYSE:QBTS) stock climbed more than 11% on Friday after the company posted a 507% year-on-year revenue increase and unveiled a major quantum computing milestone.
Revenue jumped to $15 million in the quarter, driven by the first commercial sale of its Advantage system. Gross margin reached 93.6%, while net loss narrowed to $5.4 million from $17.3 million a year earlier.
Beyond the financials, D-Wave demonstrated quantum supremacy with its new 1,200-qubit Advantage2 prototype, solving a materials simulation problem in minutes that would take classical supercomputers millions of years.
The company also rolled out a quantum-powered blockchain hashing solution, which could cut energy use in blockchain operations by up to 1,000-fold compared to traditional methods.
Analyst sentiment has turned positive. Benchmark's David Williams raised his price target on QBTS shares from $8 to $14, describing the quarter as arguably the most significant in D-Wave's history.
With over $300 million in cash and a proven commercial product, D-Wave appears to be shifting from experimental to essential in the race for quantum advantage.
Is D-Wave Stock a Buy Now?
Based on the one year price targets offered by 5 analysts, the average target price for D-Wave Quantum Inc is $12.60 with a high estimate of $13.00 and a low estimate of $12.00. The average target implies a upside of +2.86% from the current price of $12.25. For deeper insights, visit the QBTS Forecast page.
This article first appeared on GuruFocus.