Key Takeaways
- Mizuho Securities boosted its D-Wave Quantum price target to $35 from $29 while keeping an Outperform rating
- D-Wave held its inaugural Analyst Day event on June 1, 2026, at the New York Stock Exchange
- Company unveiled updated technology roadmap featuring 10 logical qubits by 2030, expanding to 100 by 2032
- D-Wave projects long-term gross margins of 65–75% for its Quantum Computing as a Service offering
- Wall Street consensus rates QBTS as Strong Buy with $38.27 average price target on TipRanks
Mizuho Securities analyst Vijay Rakesh increased his D-Wave Quantum (QBTS) price objective to $35 from $29 this Monday after the quantum computing company hosted its inaugural Analyst Day presentation. His Outperform rating remains unchanged.
At the time Rakesh issued his note, QBTS shares were changing hands at $23.37, making his updated target represent approximately 50% potential upside. The stock currently trades about 50% beneath its 52-week peak of $46.75 and has declined 10.6% since the start of the year.
Rakesh carries significant credibility in the analyst community — he’s ranked #4 among 12,304 analysts monitored by TipRanks, boasting a 73% accuracy rate and delivering an impressive average return of 83.20% per recommendation.
D-Wave convened its Analyst Day on June 1, 2026, at the New York Stock Exchange, where the company detailed a comprehensive two-pronged quantum computing approach encompassing both its established annealing technology and an emerging gate-based quantum initiative.
The company’s development timeline includes launches of 17-qubit and 49-qubit systems slated for late 2026 and 2027, respectively, culminating in a 181-qubit system arriving in 2028. This 2028 system marks a crucial milestone as it will feature D-Wave’s initial error-corrected logical qubits.
Executives outlined plans to reduce error rates by more than 2,000-fold, with fault-tolerant quantum algorithms anticipated by 2030. Practical quantum chemistry and quantum AI applications are scheduled for 2032.
The revised gate-based roadmap now targets achieving 10 logical qubits by 2030, with expansion to 100 logical qubits by 2032. Previously announced milestones continue as planned.
Unique Dual-Platform Approach and Market Potential
D-Wave currently stands as the sole provider delivering both annealing and gate-based quantum computing solutions. Rakesh identifies this dual capability as a significant competitive advantage in an increasingly competitive sector.
The overall quantum computing addressable market is projected to reach $450–850 billion by 2040. Gate-based architectures are anticipated to capture approximately 75% of this opportunity, representing expansion beyond annealing applications.
Regarding annealing technology, D-Wave’s Advantage2 platforms are already deployed commercially and utilized for optimization challenges including scheduling and routing operations. System uptime exceeds 99.9%.
The company showcased quantum error correction cycle times below 5 microseconds and emphasized superior error-reduction scaling compared to alternative methodologies.
Revenue Projections and Profitability Outlook
D-Wave presented long-term gross margin objectives of 65–75% for Quantum Computing as a Service, 40–50% for Professional Services offerings, and 75–90% for Computing Systems sales.
The company presently maintains a 66% gross profit margin and holds more cash than debt on its financial statements. Each QCaaS system is projected to produce $25–30 million in annual recurring revenue. D-Wave currently operates four quantum systems accessible via cloud infrastructure.
Research and development spending will continue representing the company’s largest operational expense category as it pursues its 2030 qubit objectives.
In additional recent news, D-Wave revealed plans to obtain $100 million in funding through the U.S. CHIPS and Science Act, with equity issuance to the U.S. Department of Commerce as part of this program.
Rosenblatt and Stifel both reaffirmed Buy recommendations following the Analyst Day presentation, establishing price targets of $43 and $35 respectively.
QBTS currently holds a Strong Buy consensus rating on TipRanks based on 12 Buy recommendations and one Hold rating. The average analyst price target of $38.27 suggests 63.8% upside potential from present trading levels.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
