D-Wave Quantum Shares Experience a Turbulent Week

The stock of quantum computing pioneer D-Wave Quantum has been on a rollercoaster ride, marked by extreme volatility. A powerful surge on Thursday was swiftly followed by a corrective pullback on Friday as investors took profits. This price action unfolds against a backdrop where market analysts foresee a renewed technological arms race between the United States and China, raising the question of whether the company stands to benefit from escalating geopolitical tensions.

The substantial 14% leap on Thursday was largely ignited by commentary from Nobel laureate in physics, John Martinis. The former Google researcher warned in an interview that China has nearly closed the technological gap with the U.S. in the quantum arena, describing the dynamic as a genuine race between the two superpowers.

Martinis anticipates that following its intense focus on artificial intelligence, a potential Trump administration would likely turn greater attention to quantum computing. These remarks fueled market hopes for increased government spending in the sector.

Wall Street Maintains a Bullish Stance

Despite the short-term price correction, optimism on Wall Street remains intact. Investment bank Evercore ISI initiated coverage of D-Wave on Wednesday with an "Outperform" rating, attaching a price target of $44. This suggests significant upside potential from current levels.

Should investors sell immediately? Or is it worth buying D-Wave Quantum?

Analyst Mark Lipacis based his positive assessment on the company's unique technological position. He noted that D-Wave is the sole commercial provider developing both annealing and gate-model quantum computers. This view finds broad support: of the 14 analysts covering the stock, 12 currently recommend buying the shares.

Strategic Pivot Toward Government Contracts

Aligning with the geopolitical climate, D-Wave announced the formation of a dedicated business unit focused on U.S. government contracts. The unit will be led by Jack Sears Jr., a veteran with over 25 years of experience in the defense and aerospace industries. CEO Alan Baratz emphasized that complex national challenges increasingly demand more powerful computing resources.

The company's recent fundamentals underscore its ambitions. Third-quarter revenue doubled to $3.7 million, while cash reserves swelled to a record $836.2 million. Growing institutional interest mirrors this progress; for instance, UBS increased its stake by over 540% in the last quarter.

Investors now have a key date circled on their calendars: the user conference "Qubits 2026" is scheduled for January 27-28, 2026, in Florida. The event will likely provide insight into how quickly technological advances and the new government-focused strategy can translate into concrete contracts.