This analyst loves D-Wave quantum stock

In a January 28 note, Roth Capital Markets analyst Suji Desilva reiterated a “Buy” rating and $40.00 12-month price target on D-Wave Quantum (D-Wave Quantum Stock Quote, Chart, News, Analysts, Financials NYSE:QBTS), following the company’s annual Qubits 2026 conference.

Desilva said the event reinforced D-Wave’s differentiated dual-platform roadmap spanning both quantum annealing and gate-model computing, which he views as expanding the company’s addressable market and supporting growing customer traction across cloud services and hardware.

“We believe the significant customer traction across both cloud services and hardware is indicative of the traction QBTS is gaining in the marketplace for its quantum offerings,” he said.

D-Wave, based near Vancouver with U.S. operations historically in Palo Alto, develops and supplies quantum computing systems focused on annealing and gate-model architectures, with applications across logistics, AI and materials science. Founded in 1999, the company serves customers including Volkswagen, Lockheed Martin and NEC, and employs roughly 200 people, about 70% of whom are in R&D.

Desilva attended the Qubits 2026 conference in Boca Raton, Florida, where D-Wave also announced plans to relocate its U.S. headquarters. He said attendance was strong both in person and online, and that management provided additional detail on its integrated roadmap, including its Advantage annealing system alongside Leap and Stride hybrid solvers. He said that this “full platform” approach materially broadens the company’s opportunity set. D-Wave expects to commercialize an eight-qubit gate-model system later in calendar 2026, followed by a seventeen-qubit version the year after.

He also pointed to progress on the technology side, highlighting management’s discussion of proprietary superconducting control-chip integration and built-in error detection as key to performance and scalability. On the commercial front, Desilva said customer momentum is building. D-Wave announced Florida Atlantic University as a new Advantage annealing hardware customer, with expected revenue of about $20-million from the system sale, and disclosed its first $10-million QCaaS contract, a two-year agreement with an unnamed Fortune 100 customer.

Desilva said increasing deal sizes and longer contract durations are encouraging indicators for future cloud services growth, while early interest is also emerging for higher-qubit gate-model systems. He said that progress with defence-related customers, including through the company’s partnership with Davidson and presentations from customers such as Anduril, further supports adoption.

“We are particularly encouraged by customer testimonials showing higher-quality optimization results in materially faster run-times versus traditional compute approaches,” he said.

Based on the breadth of the platform, expanding customer engagement and improving visibility on commercial deployments, Desilva said Roth remains constructive on D-Wave’s outlook.

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