D-Wave Quantum (QBTS) Stock: South Korea Partnership Sparks Wall Street Excitement

TLDR

Table of Contents

Benchmark analyst David Williams raised D-Wave Quantum (QBTS) price target from $14 to $20, implying 29% upside
New South Korea partnership with Yonsei University and Incheon Metropolitan City could lead to Advantage2 system installation
D-Wave reported $23 million in bookings for fiscal 2024, up 120% year-over-year with $178 million cash on hand
Recent quantum system sale to Germany’s Forschungszentrum Jülich signals growing demand for annealing-based hardware
Despite insider selling activity, analyst believes strategic partnerships justify bullish outlook

D-Wave Quantum shares got a boost today as Benchmark analyst David Williams raised his price target to $20 from $14. The new target suggests 29% upside from the current price of $15.55.

The upgrade comes after D-Wave announced a memorandum of understanding with South Korea’s Yonsei University and Incheon Metropolitan City. The partnership aims to accelerate quantum computing adoption in the region.

Williams calls the South Korea deal a strategic validation of D-Wave’s technology on the global stage. While the MOU is non-binding, it sets up a framework for future sales.

We are excited to announce that D-Wave, Yonsei University and Incheon Metropolitan City have announced a strategic partnership that includes research collaboration, development of commercial use cases, and collaborative efforts for acquisition of a D-Wave Advantage2™ system at… pic.twitter.com/U8FRQlSL33
— D-Wave (@dwavequantum) June 17, 2025

The partnership could lead to the installation of D-Wave’s Advantage2 quantum system in South Korea. This represents a potential multi-million dollar revenue opportunity for the company.

The analyst sees this as part of D-Wave’s broader ecosystem strategy in tech-forward markets. South Korea has been pushing hard into quantum technology development.

Hardware Sales Momentum Building

D-Wave’s recent hardware sales have caught Wall Street’s attention. The company sold a quantum system to Germany’s Forschungszentrum Jülich earlier this year.

This marked the first major high-performance computing center to purchase D-Wave’s technology. Williams views this as proof that demand is growing for the company’s annealing-based quantum hardware.

The German sale helped validate D-Wave’s approach in the competitive quantum computing space. Other quantum companies focus on gate-based systems, but D-Wave specializes in quantum annealing.

D-Wave’s hardware momentum extends beyond individual sales. The company is building relationships with research institutions and government entities worldwide.

These partnerships often start as research collaborations before evolving into commercial purchases. The pipeline of potential customers continues to grow.

Strong Financial Position Supports Growth

D-Wave’s financial performance has improved markedly over the past year. The company reported $23 million in bookings for fiscal 2024, representing 120% year-over-year growth.

The company ended 2024 with $178 million in cash on the balance sheet. This gives D-Wave runway to invest in research and development while pursuing growth opportunities.

Williams points to recent increases in cash and working capital as positive signs. The strong balance sheet supports D-Wave’s quantum computing-as-a-service model.

The QCaaS approach allows customers to access quantum computing power without purchasing hardware outright. This creates recurring revenue streams for D-Wave.

Not everything looks rosy for the stock, however. Insider sentiment has turned negative in recent months with increased selling activity.

The insider selling raises questions about management’s confidence in near-term prospects. Still, Williams believes the strategic partnerships outweigh these concerns.

D-Wave currently trades as a Strong Buy based on six analyst ratings. The average price target stands at $14.20, though Benchmark’s new $20 target sits well above this level.

The South Korea partnership announcement came just weeks after D-Wave’s impressive Q1 earnings report. The company continues to build momentum in the quantum computing sector.

D-Wave’s Advantage2 system represents the company’s latest quantum annealing technology. The system offers improved performance over previous generations of quantum hardware.

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