D-Wave Quantum Inc. (QBTS) shares are jumping on Thursday after the company signed a Letter of Intent for $100 million in funding under the U.S. CHIPS and Science Act. This isn't just a check — it's a signal that the U.S. government is betting big on quantum computing, and D-Wave is one of its horses.
The proposed funding is expected to accelerate D-Wave's development of superconducting annealing and gate-model technologies. That's a fancy way of saying they're building faster, more powerful quantum computers. The investment is also seen as a move to bolster U.S. capabilities in quantum tech, potentially creating thousands of high-paying jobs and strengthening domestic supply chains. In exchange, D-Wave will issue shares to the government — a structure that gives Uncle Sam a stake in the company's success.
Q1 Highlights: A Mixed Bag with a Bookings Boom
Earlier this month, D-Wave reported first-quarter results that were a bit of a mixed bag. The company posted a loss of 5 cents per share, beating the consensus estimate of a 9-cent loss — so that's good. But revenue came in at $2.85 million, missing the $4.13 million analysts were looking for and representing an 81% drop from the same quarter last year. Ouch.
However, the company's cash position is looking healthy. Consolidated cash and marketable investment securities totaled $588.4 million as of March 31, a 93% increase from $304.3 million a year earlier. That's a lot of runway.
And then there's bookings. D-Wave reported first-quarter bookings of $33.4 million, up a staggering 1,994% year-over-year from $1.6 million in Q1 2025, and up 149% from $13.4 million in Q4 2025. That's the kind of growth that makes investors sit up and take notice.
Technical Analysis: Neutral Momentum, But Room to Run
D-Wave's stock has had a solid run over the past year, with a 12-month gain of 25.65%. Currently, the stock is trading 9.6% above its 20-day simple moving average (SMA) of $20.57, indicating a bullish short-term trend. The 50-day SMA is at $18.22, and the stock is 23.7% above that, suggesting strong momentum.
The Relative Strength Index (RSI) sits at 47.25, which is neutral territory — not overbought, not oversold. That means there's room for further upward movement if buying pressure picks up. Key resistance is at $25.00, a level where rebounds could stall, while support is at $18.50, where buyers have stepped in before.
Earnings & Analyst Outlook
D-Wave is slated to provide its next financial update on August 6, 2026 (estimated). Analysts are expecting a loss of 9 cents per share on revenue of $4.04 million — both slightly worse than the previous estimates, but that's the nature of the quantum game: big spending now for big payoffs later.
The stock carries a Buy rating with an average price target of $38.00. Recent analyst moves include:
- Canaccord Genuity: Buy (Lowers Target to $41.00) — May 13
- Rosenblatt: Buy (Maintains Target to $43.00) — May 13
- Cantor Fitzgerald: Overweight (Maintains Target to $40.00) — May 13
So analysts are bullish, even if they're tweaking numbers slightly.
The Verdict: Momentum Is Weak, But the Story Is Strong
According to market data, D-Wave's momentum score is weak at 37.83, meaning the stock is underperforming the broader market on that front. But the CHIPS Act funding is a game-changer — it's a government endorsement that could shift the narrative. The company's technology is applicable across logistics, artificial intelligence, and drug discovery, and this strategic investment could solidify its market position.
QBTS Price Action: D-Wave Quantum shares were up 21.76% at $23.50 at the time of publication on Thursday, according to market data.
Photo via D-Wave Quantum
