TLDR
- D-Wave Quantum launched new AI tool kit for developers, demonstrating quantum-AI integration with image generation capabilities
- Multiple analysts upgraded targets: Needham raised to $20, Rosenblatt set $30 target, Stifel initiated at $26
- Company trades at $17.09 with analysts seeing 13.5% to 76% upside potential across different price targets
- D-Wave reports Q2 earnings August 7 with expected loss of $0.05 per share on $2.54 million revenue
- Stock holds Strong Buy rating from nine analysts based on quantum annealing technology and commercial traction
D-Wave Quantum unveiled its quantum AI tool kit Monday, marking another push into the intersection of artificial intelligence and quantum computing. The collection of developer tools includes a demo showing how to generate images using the company’s quantum processors.

The announcement comes as the quantum computing race intensifies across the sector. D-Wave stressed this represents an early step toward integrating quantum computers into machine-learning systems.
Wall Street took notice of the development. Needham analysts raised their price target to $20 from $13 while maintaining a Buy rating on the stock.
The firm also lifted targets on competitors IonQ to $60 and Rigetti Computing to $18. Needham noted increased capital market activity among quantum computing companies in recent months.
Analyst Upgrades Drive Stock Higher
Rosenblatt analyst Kevin Garrigan initiated coverage last week with a Buy rating and $30 price target. Shares climbed 4.3% to $17.09 Monday following the quantum AI announcement.
Garrigan’s target suggests nearly 76% upside from current levels. He views D-Wave as offering differentiated exposure to the growing quantum computing market.
The analyst believes D-Wave’s first-mover advantage in quantum annealing positions it well. Quantum annealing uses quantum physics to find optimal solutions to complex problems.
This approach differs from gate-based quantum computing used by competitors like IBM. D-Wave CEO Alan Baratz defended the annealing approach in recent comments.
Stifel Sees Strong Q2 Setup
Stifel Nicolaus initiated coverage with a Buy rating and $26 price target ahead of Q2 earnings. The company reports results August 7.
Analysts expect a loss of $0.05 per share on revenue of $2.54 million for the quarter. Five-star analyst Ruben Roy called D-Wave a first mover in commercial quantum computing.
Roy pointed to D-Wave’s work since 1999 and current paying commercial customers. He highlighted a key system sale to Germany’s Julich Supercomputing Centre this year.
The analyst sees this as evidence of rising interest from global research institutions. D-Wave ended Q1 with about $320 million in cash following a $150 million equity raise.
Market Position and Growth Outlook
Roy believes the total quantum computing market could reach $10 billion by 2030. He sees D-Wave positioned to capture growth in this expanding market.
The company’s quantum annealing technology already solves real-world problems for commercial clients. This gives D-Wave an edge over purely theoretical approaches, according to supporters.
However, not everyone agrees on the best quantum computing approach. IBM’s Jay Gambetta argues gate architecture offers the only provable exponential speedup over classical computers.
Baratz responded by noting D-Wave’s quantum computer has demonstrated supremacy on useful problems. He questioned whether theoretical work or delivered value matters more to customers.
Wall Street Consensus
D-Wave Quantum stock carries a Strong Buy consensus rating from Wall Street analysts. Nine Buy ratings have been assigned in the past three months.

The average price target of $19.50 implies 13.5% upside potential from current levels. Individual targets range from $20 to $30 across different firms.
Garrigan projects D-Wave could achieve over 66% compound annual growth over the next five years. This would exceed growth rates for the broader quantum computing market.
The company’s funding position provides runway to reach profitability according to analysts. Strong cash reserves from recent equity raises support continued development efforts.
D-Wave’s quantum annealing systems currently serve a range of commercial clients across various industries. The new AI tool kit represents another step in expanding these capabilities into machine learning applications.
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