This analyst just raised his target on D-Wave to $40.00

Roth Capital Partners analyst Suji Desilva says D-Wave Quantum’s (D-Wave Quantum Stock Quote, Chart, News, Analysts, Financials NYSE:QBTS) first investor analyst day strengthened his confidence in the company’s competitive position and growth outlook.

In a June 1 report, Desilva maintained his “Buy” rating on D-Wave and raised his target price to $40.00 from $30.00

Desilva said D-Wave’s positioning across both quantum annealing and gate-model quantum computing gives the company access to a broad range of expected market opportunities, including machine learning, cryptography and simulation.

“We believe QBTS’s unique positioning offering both quantum annealing and gate model provides access to the full range of expected quantum market opportunities across machine learning/crypto/simulation with the company very well positioned for optimization from its production Advantage 2 quantum annealing computers,” he said.

The company highlighted its gate-model roadmap, including post-NISQ systems of up to 181 physical qubits by 2028 and next-generation fault-tolerant systems of up to 100 logical qubits by 2032.

“We have confidence in QBTS’s roadmap execution given the company’s homegrown technology coupled with technology acquired recently with QCI,” Desilva said.

Desilva said D-Wave has the pieces needed to execute, including fast superconducting-based compute systems, efficient error correction capabilities helped by the acquired QCI dual-rail technology and interconnect scalability that reduces control-line intensity per qubit.

The analyst said customer interest should expand in the near term, pointing to a customer testimonial from AT&T and management’s emphasis on enterprise engagement, hardware sales and commercial use cases.

Following D-Wave’s previously announced $10-million enterprise QCaaS win, Desilva expects additional Fortune 500 companies to pursue multi-year, multi-application deals for quantum-based applications. He said D-Wave also reaffirmed expectations for at least two hardware deals in 2026.

Longer term, management expects revenue to be roughly evenly split between QCaaS and systems, supporting product gross margins of more than 65%.

Desilva said growth could come from AI, blockchain, U.S. government agencies and channel sales, with early quantum annealing applications driving near-term revenue and more complex gate-model applications supporting future opportunities. He also expects $100-million of government CHIPS funding support over the next five years.

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