Imagine a computer so powerful it could solve problems that would take today's machines centuries to crack. That's the promise of quantum computing, and it's sending shockwaves through the investment world. D-Wave Quantum, a pioneer in this revolutionary field, just landed a massive 10-million euro deal with Swiss Quantum Technology, sending its stock soaring. But here's where it gets controversial: while most quantum computing companies are betting on the 'gate model' approach, D-Wave is doubling down on its unique 'quantum annealing' technology. Is this a bold move or a risky gamble? And this is the part most people miss: D-Wave's annealing method, though less versatile than gate models, excels at solving specific optimization problems, potentially giving it a head start in certain industries.
Founded in 1999, D-Wave has been at the forefront of quantum innovation, leveraging supercold superconductor chips to manipulate subatomic particles and tackle challenges beyond the reach of classical computers. This latest partnership with Swiss Quantum underscores D-Wave's position as a key player in Europe's growing quantum ecosystem. "As Europe extends its quantum leadership, D-Wave's production-grade annealing technology will be a critical component, driving application development and adoption now," said D-Wave CEO Alan Baratz.
On Wednesday, D-Wave's stock (QBTS) climbed over 4% to $44.94 in morning trading, capping a remarkable 412% surge in 2025—the highest among quantum computing stocks. While the company reported a wider-than-expected second-quarter loss, its revenue jumped 42% to $3.1 million, signaling strong growth potential. With nearly $800 million in cash reserves, D-Wave is well-positioned to scale its operations and compete in this high-stakes race.
But D-Wave isn't the only player making waves. IonQ (IONQ) and Rigetti Computing (RGTI) have seen their shares rise 85% and 267%, respectively, this year, while Quantum Computing (QUBT) is up 31%. For investors eyeing this space, keeping an eye on volatility metrics like the average true range (ATR) could be crucial.
Here’s the million-dollar question: Will D-Wave's annealing approach ultimately prove to be a game-changer, or will the gate model dominate the quantum computing landscape? Let us know your thoughts in the comments below.
For more insights on quantum computing, artificial intelligence, and emerging technologies, follow Reinhardt Krause on Twitter @reinhardtk_tech. And if you're looking to dive deeper into stock trading strategies, check out IBD's Investor's Corner or explore options trading basics with our video tutorials. Ready to take your investing to the next level? Unlock IBD's premium stock lists and tools with IBD Digital today!
