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D-Wave Quantum (QBTS) stock was almost unheard of on the Street one year ago. Even in the quantum computing space, it was not seen as a serious contender. The company’s niche tech, plus the unsustainable cash burn, made investors avoid investing in an unsustainable business. However, a year later, it is up 3,070% today.

Wall Street went on the hunt for the “next big thing” after AI, and quantum computing was the obvious next step. QBTS stock started soaring in late 2024. But what caused QBTS stock to really soar was the relentless PR offensive D-Wave’s management successfully executed.

In February, the company’s CEO wrote an open letter in The Wall Street Journal. The next month, the company published a paper reporting that the company’s processor could solve a simulation problem in far less time than the classical approach they benchmarked. This isn’t a major leap forward ahead of its competitors, but the company framed this by claiming “Quantum Supremacy”. To the average Joe, this gave them the idea that D-Wave was now spearheading the industry.

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The feedback loop

Management took full advantage of the resulting share price increase by issuing more shares. This made the balance sheet much healthier and increased the cash runway. In turn, the whole company became much more investable, as the additional cash made it likely that D-Wave would make real breakthroughs as it had more cash to invest into its own business.

If you add the broader stock market’s enthusiasm about quantum computing, you get to where QBTS stock is at today.

And more gains may be ahead.

A large number of traders expect the stock to cross $30, or even $40 and this year. If you are willing to buy into the speculation for significant near-term gains, it might be worth taking a position in QBTS stock.

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