D-Wave Quantum Stock: Why Analysts Say "Moderate Buy" in December 2025

• Why Is D-Wave Quantum’s Stock Gaining Momentum?
• Government Contracts: A Game Changer?
• Analysts Upbeat Despite Recent Pullback
• Institutional Confidence: Vanguard and UBS Double Down
• Financial Health: Cash-Rich but Not Yet Profitable
• Risks: Quantum’s "Wild West" Phase
• FAQ: Quick Answers for Investors

D-Wave Quantum (NYSE: QBTS) is making waves in the quantum computing sector, with its stock showing a 19% weekly gain before settling at $27.00 on December 5, 2025. Analysts are bullish, citing strong government contracts, surprising Q3 earnings, and institutional backing. Vanguard and UBS have significantly increased their stakes, while Rosenblatt Securities and Cantor Fitzgerald raised price targets to $40.00. With $836.2M in cash and a strategic focus on national security applications, D-Wave is poised for growth—but volatility remains. Here’s what you need to know.

Why Is D-Wave Quantum’s Stock Gaining Momentum?

The stock’s recent surge stems from two key drivers: a new government-focused division and better-than-expected Q3 results. D-Wave appointed Jack Sears Jr., a public-sector veteran, to lead its push into federal contracts for quantum logistics and defense. Meanwhile, Q3 revenue hit $3.74M (vs. $3.03M estimates), and the loss per share narrowed to $0.05. Institutional investors are taking notice—Vanguard boosted its stake by 41.2%, and UBS quintupled its position.

Government Contracts: A Game Changer?

D-Wave’s new "Advantage2" systems target high-value government use cases, from supply chain optimization to classified projects. This pivot triggered a double-digit stock bounce post-announcement. "The U.S. is racing to lead in quantum," says BTCC analyst Liam Chen. "D-Wave’s hybrid approach is gaining traction faster than pure-play competitors." The firm’s $836.2M cash reserve provides runway to scale without dilution fears.

Analysts Upbeat Despite Recent Pullback

After a 6% Friday dip (likely profit-taking), 14 analysts reaffirmed a "Moderate Buy" rating. Rosenblatt and Cantor Fitzgerald see 48% upside to $40.00, while Evercore ISI initiated coverage with a $44.00 target. "Their tech is transitioning from lab to real-world use," notes Evercore’s Priya Kapoor. Still, quantum stocks remain volatile—D-Wave’s beta of 2.3 means twice the market’s swings.

Institutional Confidence: Vanguard and UBS Double Down

Big money is betting big. Vanguard’s Q3 filing revealed a 41.2% stake increase, while UBS grew its position by 500%+. "Institutions smell scalability," says TradingView data head Mark Russo. The stock’s 30-day average volume spiked to 2.1M shares (up 37%), signaling retail interest too.

Financial Health: Cash-Rich but Not Yet Profitable

D-Wave’s $836.2M war chest dwarfs peers like Rigetti ($120M). However, gross margins linger at 42%, reflecting R&D costs. "They’re investing ahead of revenue," explains BTCC’s Chen. "2026 could be their inflection year." For context, Boston Consulting Group projects the quantum market to hit $850B by 2035—D-Wave aims to carve out a niche in hybrid solutions.

Risks: Quantum’s "Wild West" Phase

Competition is fierce. IBM and Google lead in gate-model quantum, while startups like Atom Computing challenge D-Wave’s annealing approach. Regulatory hurdles also loom—Congress is debating export controls on quantum tech. "This isn’t a set-and-forget stock," warns Kapoor. "Expect turbulence."

FAQ: Quick Answers for Investors

What’s D-Wave’s consensus rating?

14 analysts rate it "Moderate Buy" as of December 2025.

Why did the stock drop 6% on December 5?

Short-term profit-taking after a 19% weekly rally.

How much cash does D-Wave have?

$836.2M as of Q3 2025—enough for ~5 years at current burn rates.