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D-WAVE QUANTUM QBTS shares have surged 420.3% in the trailing six months compared with the broader Zacks Computer and Technology sector’s return of 3.7% and Internet - Software industry’s appreciation of 14.2%.
QBTS has outperformed its peers, which includes International Business Machines IBM and Alphabet GOOGL. These companies are also making strong efforts in the quantum computing space.
In late 2024, IBM launched its most advanced quantum computers, while Google’s Willow quantum chip demonstrated exceptional computational efficiency, solving tasks in minutes that would take supercomputers a much longer time. IBM and GOOGL have gained 26.4% and 2.6% in the trailing six-month period, respectively.
QBTS’ outperformance can be attributed to an expanding clientele and its growing influence in the quantum computing space.
QBTS Shares Beat Sector, Industry
Image Source: Zacks Investment Research
QBTS Benefits From Expanding Quantum Computing Market
QBTS’ expanding portfolio in the quantum computing space has been a key catalyst. Quantum Computing-as-a-Service revenues grew 41% year over year, totaling $1.6 million in the third quarter of 2024. This was largely driven by a higher average revenue per customer, reflecting increasing demand for D-Wave’s cloud-based quantum computing services.
QBTS’ commitment to maintaining high service standards and ensuring the security of customer data has been noteworthy. In December 2024, QBTS successfully completed its second SOC 2 Type 2 audit, reaffirming its commitment to customer data security and protection while enhancing its service offerings, including tailored SLAs for the Leap quantum cloud service to support commercial-grade quantum and hybrid-quantum applications.
Further expanding its portfolio in November, QBTS announced the completion of the calibration and benchmarking of its 4,400+ qubit Advantage2 processor, marking significant performance improvements over the Advantage system in areas like optimization, AI and materials science.
Expanding international footprint has also been noteworthy. D-WAVE recently announced that Japan’s largest mobile phone operator, NTT DOCOMO, plans to deploy a hybrid-quantum application using D-Wave technology to optimize mobile network performance and reduce signal congestion.
As the quantum computing market continues to evolve, QBTS is poised to benefit from its growth. Per a Grand View Research report, the global quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030.
QBTS’ Strong Partner Base Aids Prospects
QBTS’ partnerships with Zapata Computing Holdings, Japan Tobacco and Staque have been major growth drivers for its success.
D-Wave Quantum and Zapata AI expanded their commercial partnerships to accelerate the development of integrated quantum and generative AI solutions in D-Wave’s Leap cloud platform, focusing on improved model training, energy efficiency and optimized business processes.
D-Wave continued to broaden its customer base, including 132 customers across commercial, government and research sectors. The company saw a 66% increase in revenues from government customers and a 47% increase from research customers in the third quarter of 2024, highlighting the growing demand and recognition of quantum computing solutions across multiple industries and sectors.