Once dismissed as a moonshot, D-Wave Quantum ( QBTS ) is now emerging as one of the most commercially grounded players in the quantum computing race—and Wall Street is starting to take notice.

On Wednesday, Cantor Fitzgerald analyst Troy Jensen initiated coverage on the company with an “Overweight” rating and a $20 price target, citing D-Wave's leadership in Quantum Annealing technology, its growing list of enterprise use cases, and a surge in demand from sectors such as logistics, aerospace, and national defense.

Jensen noted that D-Wave is the first commercial quantum computing company and a leader in Quantum Annealing technology with over 30+ proven business use cases.

The analyst noted that companies are utilizing D-Wave’s Annealing technology in optimization problems, such as scheduling and logistics routing, and achieving productivity improvements.

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Moreover, D-Wave has demonstrated quantum computational supremacy on real-world problems.

Ford Otosan, a joint venture with Ford Motor Co ( F ) and Koç Holding in Turkey, has deployed a hybrid-quantum application in production that has improved scheduling time by a factor of six, Jensen noted.

It recognized its first Advantage system sale with Jülich Supercomputing Centre purchasing its own D-Wave Advantage Annealing Quantum computing system. It announced the physical assembly of an Advantage2 Annealing system at Davidson Technologies’ (private) headquarters in Alabama in its support of the U.S. Department of Defense, intelligence community, and the aerospace industry, the analyst said.

After a challenging 2022 and 2023, D-Wave’s share price has rallied since late 2024, up ~1,326% in the last 52 weeks and up ~74% year-to-date compared to an ~6% advance in the previous 52 weeks and a ~3% decline year-to-date for the Russell 2000 index, Jensen pointed out.

D-Wave is in the very early innings of commercializing its technology, the analyst highlighted.

He noted D-Wave can capture 15% of the quantum hardware, software, and services market by 2035E, which equates to $477 million in present value terms, using a 10% discount rate.

Jensen projected second-quarter revenue of $2.3 million and EPS of $(0.05).

QBTS Price Action: D-Wave Quantum shares were up 7.1% at $15.88 at last check Wednesday.

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