D-Wave Quantum (QBTS) Stock: One Analyst Sees 50% Upside — Here’s Why

TLDR

• Mizuho raised its QBTS price target from $29 to $35, maintaining an Outperform rating
• D-Wave hosted its first Analyst Day on June 1, 2026, at the NYSE
• The company updated its roadmap to 10 logical qubits by 2030, scaling to 100 by 2032
• QBTS targets long-term gross margins of 65–75% for its QCaaS business
• The stock has a Strong Buy consensus on TipRanks with an average price target of $38.27

Mizuho Securities analyst Vijay Rakesh raised his price target on D-Wave Quantum (QBTS) from $29 to $35 on Monday, following the company’s first-ever Analyst Day. He kept his Outperform rating intact.

D-Wave Quantum Inc., QBTS

QBTS was trading at $23.37 at the time of the note, meaning the new target implies roughly 50% upside from that level. The stock sits about 50% below its 52-week high of $46.75 and is down 10.6% year-to-date.

Rakesh is no small voice here — he ranks #4 out of 12,304 analysts tracked on TipRanks, with a 73% success rate and an average return per rating of 83.20%.

The Analyst Day was held on June 1, 2026, at the New York Stock Exchange. D-Wave used the event to lay out a dual-platform quantum computing strategy covering both its existing annealing systems and a new push into gate-based quantum computing.

D-Wave plans to launch 17-qubit and 49-qubit systems in late 2026 and 2027, followed by a 181-qubit system in 2028. That 2028 system is expected to deliver the company’s first error-corrected logical qubits.

Management is targeting a reduction in error rates by more than 2,000 times, with fault-tolerant quantum algorithms expected by 2030. Real-world quantum chemistry and quantum AI applications are on the roadmap for 2032.

The company updated its gate roadmap to include 10 logical qubits by 2030, scaling to 100 by 2032. Prior milestones remain on track.

Dual-Platform Strategy and Market Opportunity

D-Wave is currently the only company offering both annealing and gate-based quantum computing platforms. Rakesh views this as a key differentiator in a crowded space.

The total addressable market for quantum computing is estimated at $450–850 billion by 2040. Gate-based systems are expected to account for roughly 75% of that opportunity, incremental to annealing.

On the annealing side, D-Wave’s Advantage2 systems are already commercially available and used for optimization tasks like scheduling and routing. Uptime sits above 99.9%.

The company demonstrated quantum error correction cycle times of under 5 microseconds and highlighted strong error-reduction scaling versus competing approaches.

Financial Targets and Margin Profile

D-Wave laid out long-term gross margin targets of 65–75% for Quantum Computing as a Service, 40–50% for Professional Services, and 75–90% for Computing Systems.

The company currently holds a 66% gross profit margin and more cash than debt on its balance sheet. Each QCaaS system is estimated to generate $25–30 million in annual revenue. D-Wave has four quantum systems available through the cloud today.

R&D will remain the largest operating expense as the company works toward its 2030 qubit targets.

In other recent developments, D-Wave announced plans to secure $100 million in funding under the U.S. CHIPS and Science Act, issuing stock to the U.S. Department of Commerce as part of the initiative.

Rosenblatt and Stifel both maintained Buy ratings following the Analyst Day, with price targets of $43 and $35 respectively.

QBTS now carries a Strong Buy consensus on TipRanks based on 12 Buy ratings and one Hold. The average price target of $38.27 implies 63.8% upside from current levels.

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