10 Best Quantum Computing Stocks to Buy According to Analysts

2. D-Wave Quantum Inc. (NYSE:QBTS)

Median Upside Potential: 108.33%

Number of Analysts: 7

Insider Monkey Weighted Score: 47.5

D-Wave Quantum Inc. (NYSE:QBTS) is a leading company in the industry that develops and supplies quantum-computing systems and related software services. The company has been gradually scaling the number of Qubits in its systems. The first system was launched in 2011, with a 128-qubit chipset. The company has gone all the way from there to Advantage, which it launched in 2020, with over 5,000 qubits.

D-Wave Quantum Inc. (NYSE:QBTS) announced in early 2024 that the prototype of Advantage2 had been developed with 1200+ qubits and 10,000+ couplers, double the number of the previous prototype for the same system, and with substantial performance gains over the original Advantage system.

Even though QBTS has a number of customers, the fact that the commercial usefulness of early quantum computers is hotly debated doesn’t do the company any favors. It’s operating in a capital-intensive industry, with annual net cash being in negative figures since 2021.

Even though it’s growing its revenue on a sustained basis, the company struggles with profitability, which could make it hard for it to innovate. QBTS faced the threat of getting de-listed by the NYSE on October 2nd for the third time after its stock price went below $1 for 30 consecutive days.

Regardless, a number of analysts remain bullish on the stock, leading to a median 12-month upside potential of 108.3%. It’s on the back of the company’s growing customer base, especially after their announcement of potential quantum supremacy in March 2024. The qubit density for the company’s Advantage2 has increased to 4,800 from 1,200 earlier in the year, further growing optimism around D-Wave’s goal to reach 7,000+ qubits for Advantage2. A major catalyst for the company is the fast annealing technology that was launched in April this year, which saw high levels of adoption.