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Is D Wave Quantum (QBTS) Undervalued As Its Supply Chain Research Fund Expands Adoption?

Simply Wall St · 1d ago

D-Wave Quantum (QBTS) just widened its academic footprint by teaming up with the University of Arkansas’ Supply Chain Management Research Center to create the Quantum Supply Chain Initiative Support Fund focused on applied quantum research.

For investors, the timing is awkward. D-Wave Quantum’s share price has fallen 8.2% over the past 30 days and is down 45.9% year to date, yet the 3-year total shareholder return is very large at around 15x. This suggests long term holders have still seen substantial gains even as near term momentum has faded, following recent product launches and new partnerships that have not translated into sustained price strength.

Scan beyond D-Wave Quantum and compare it with 24 quantum computing stocks that are also pursuing real world use cases in logistics, supply chains and next generation computing.

D-Wave Quantum now couples sharp share price losses with very large multi year gains and fresh partnerships in supply chains and gate model hardware. Does that mix still reward new risk takers at today’s valuation?

Most Popular Narrative: 57% Undervalued

D-Wave Quantum’s most followed valuation storyline puts fair value at $35.24 against a last close of $15.22, which highlights a wide gap that only really makes sense if the growth and margin assumptions behind it hold up.

Growing global adoption of quantum optimization for high value logistics, manufacturing and defense workflows, evidenced by production grade deployments such as BASF, Davidson and North Wales Police, should expand recurring QCaaS usage and may support sustained double digit revenue growth.

See why 106 investors see D-Wave Quantum as 57% undervalued.

Result: Fair Value of $35.24 (UNDERVALUED)

Still, the bullish D-Wave Quantum story leans heavily on a small set of large contracts and on rising spend that has yet to close sizeable operating losses.

Find out about the key risks to this D-Wave Quantum narrative.

Next Steps

Mixed feelings about D-Wave Quantum after this latest move? Act while the facts are fresh and weigh both sides by checking the 1 key reward and 2 important warning signs.

Looking for more investment ideas beyond D-Wave Quantum?

If D-Wave Quantum has sharpened your curiosity, do not stop here. Use the Screener to surface fresh, data driven ideas before the crowd does.

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.