D-Wave Quantum Inc. (D-Wave Quantum (QBTS)) shares were climbing in Thursday's premarket trading, and it's not hard to see why. The quantum computing company has been stacking up positive developments over the past couple of weeks, and the broader market mood is giving it an extra tailwind. Nasdaq futures were up 1.62% as of Thursday morning, while S&P 500 futures gained 0.71% — a classic risk-on backdrop that tends to favor higher-growth, speculative names like D-Wave.
Even without a fresh company-specific announcement on Thursday, the stock has been riding a wave of momentum. Let's unpack what's been fueling the optimism.
The Catalyst Stack
First, there's the analyst love. Mizuho Securities raised its price target on D-Wave to $35 from $29 on June 15, keeping an Outperform rating. That followed similar moves from Rosenblatt (Buy, $43 target) and B. Riley Securities (Buy, $40 target) earlier in the month. When analysts start competing to see who can be most bullish, investors tend to take notice.
Then there's the government angle. The U.S. Department of Commerce issued a non-binding letter of intent proposing up to $100 million in funding under the CHIPS and Science Act. That money would go toward developing and commercializing D-Wave's quantum computing systems. It's not a done deal — it's a letter of intent, not a check — but it signals serious government interest in the company's technology.
And D-Wave has been giving investors plenty to look at on the technology front. The company recently unveiled a long-term roadmap targeting 100 logical qubits by 2032. That's a big number in the quantum world, where logical qubits (error-corrected qubits) are the holy grail for building truly useful quantum computers. The roadmap reinforces D-Wave's dual-platform strategy, which combines annealing and gate-model quantum computing systems.
A New Simulator Hits the Scene
On Thursday, D-Wave introduced what it calls the world's first gate-model quantum computing simulator designed for error-aware programming. Think of it as a virtual testbed for developers who want to start working with gate-model quantum systems before the actual hardware is available. Built on D-Wave's dual-rail technology, the simulator lets developers model quantum processor behavior, detect errors, prototype applications, and test error-correction workflows.
The simulator is scheduled to launch on D-Wave's Leap cloud platform in September 2026. It will support up to 21 qubits, offer hardware and ideal emulation modes, run Monte Carlo simulations of quantum system dynamics, and integrate with the Ocean software development kit. D-Wave is also introducing Starter and Premium quantum development bundles that include simulator access, monthly usage allocations, and technical support. Pricing? You'll have to ask.
What the Charts Say
D-Wave shares were trading at $23.75 in premarket action, up about 3.62% on the day. But the technical picture is a bit of a mixed bag.
The stock is currently about 8.8% below its 20-day simple moving average (SMA) of $26.02, suggesting that recent momentum has cooled. On the other hand, it's still 6.5% above its 50-day SMA of $22.28 and 16.9% above its 100-day SMA of $20.32. So the intermediate-term trend is intact, even if the short-term has gotten a bit soggy.
The moving average crossovers tell a similar story. The 20-day SMA remains above the 50-day SMA — a bullish short-term signal. But the 50-day SMA is still below the 200-day SMA following a death cross that formed back in March. That longer-term bearish signal could continue to weigh on sentiment until the 50-day crosses back above.
The relative strength index (RSI) sits at 47.25, a neutral reading that suggests the stock is neither overbought nor oversold. It's more of a consolidation signal than a breakout signal. The next key resistance level is near $25.00, which also aligns with the 20-day exponential moving average of $24.62. Initial support sits around $22.50, just above the 50-day SMA, where buyers might step in to defend the uptrend.
Earnings and the Analyst Consensus
D-Wave's next earnings report is expected on August 6. Wall Street is looking for a loss of 10 cents per share, compared with a loss of 8 cents a year earlier. Revenue is projected to rise to $4.04 million from $3.10 million — a solid growth rate, though the company is still very much in investment mode.
The stock carries a consensus Buy rating, with an average analyst price target of $39.56. That's a hefty upside from current levels, but it's worth noting that analyst targets can be a bit aspirational for early-stage tech companies. Recent analyst actions include:
- Mizuho: Outperform, price target raised to $35 from $29 on June 15.
- Rosenblatt: Buy, $43 price target on June 11.
- B. Riley Securities: Buy, price target raised to $40 on June 2.
ETF Exposure — A Double-Edged Sword
D-Wave has meaningful weight in a few exchange-traded funds, which can amplify both buying and selling pressure. The key ones are:
- SPDR S&P Software & Services ETF (XSW): 1.14% weight
- WisdomTree Quantum Computing Fund ETF (WQTM): 4.44% weight
- Tradr 2X Long QBTS Daily ETF (QBTX): 198.58% weight — yes, that's not a typo; it's a leveraged ETF that tracks QBTS with 2x daily exposure.
Because QBTS represents such a large chunk of these funds, especially the leveraged one, any big inflows or outflows from the ETFs can create outsized moves in the stock. It's something to keep an eye on if you're trading the name.
The Bottom Line
D-Wave is sitting on a pile of positive catalysts — analyst upgrades, government funding interest, a clear technology roadmap, and a new simulator that could help build the developer ecosystem. The broader market is in a risk-on mood, which helps. But the technicals suggest the stock is in a consolidation phase, and the longer-term moving average crossover is still bearish. The next few weeks, leading up to earnings on August 6, could be telling. If the stock can break above $25 and reclaim its 20-day moving average, the bulls might have something to cheer about. If not, the $22.50 support level becomes critical.
