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D-Wave Quantum (QBTS) Is Up 26.1% After Launching U.S. Federal-Focused Quantum Computing Unit – What's Changed

Simply Wall St · 2d ago
  • D-Wave Quantum Inc. recently created a dedicated business unit, led by government-sector veteran Jack Sears Jr., to expand adoption of its quantum computing products and services across U.S. federal agencies.
  • The move positions D-Wave to pursue mission-focused applications in defense, national security, and logistics at a time when U.S.–China quantum competition is intensifying and government interest in the technology is rising.
  • Next, we’ll examine how this focused U.S. government unit could reshape D-Wave’s investment narrative around federal demand and commercialization.

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What Is D-Wave Quantum's Investment Narrative?

To own D-Wave, you really have to believe that today’s small, volatile business can turn cutting‑edge quantum hardware and software into sticky, paying customers before cash and patience run thin. The story has always revolved around two catalysts: converting proofs of concept like BASF’s scheduling pilot into larger commercial deals, and convincing deep‑pocketed partners in defense and AI/HPC that D-Wave’s hybrid quantum approach is worth backing despite heavy losses. The new U.S. government unit fits directly into that second pillar, potentially sharpening the company’s focus on federal contracts at a time when Washington is ramping up attention to quantum in the context of U.S.–China competition. That said, the stock’s very large one‑year run, rich price‑to‑book multiple, ongoing dilution and insider selling mean execution risk and downside volatility remain front and center.

However, recent insider selling and ongoing losses are key issues investors should be aware of. Upon reviewing our latest valuation report, D-Wave Quantum's share price might be too optimistic.

Exploring Other Perspectives

QBTS Community Fair Values as at Dec 2025
QBTS Community Fair Values as at Dec 2025
Investors in the Simply Wall St Community have 90 fair value views on D-Wave, spanning from just US$0.23 to nearly US$38, underlining how far apart opinions sit on this high‑risk quantum story. Set against soaring recent returns and a business still losing over US$300 million a year, that spread shows why many market participants are watching federal contract progress and cash needs so closely.

Explore 90 other fair value estimates on D-Wave Quantum - why the stock might be worth as much as 40% more than the current price!

Build Your Own D-Wave Quantum Narrative

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.