D-Wave Quantum saw a difficult month in November as its stock price dropped 38.8%, marking one of the steepest declines among quantum computing companies. Only Rigetti Computing reported a bigger fall. The company’s shares have recovered slightly in early December, but they still trade more than 36.5% their October peak, raising questions about what lies ahead for the quantum computing firm.
The broader market faced pressure in November as fears of an artificial intelligence bubble led investors to re-evaluate valuations. Many questioned whether the heavy investment in AI could justify its real-world impact. Although D Wave is not an AI company, it was caught in the same wave of caution. Quantum computing remains in its early stage, and unlike AI companies generating significant revenue, most quantum firms, including D Wave, report minimal sales. Investors became doubtful about whether a business earning tens of millions of dollars each year could be valued at USD 10 billion, prompting many to exit their positions.
Sentiment shifted in recent days as expectations of interest rate cuts surfaced, and speculation around possible government investment resurfaced. Earlier, a report suggested that the administration in power was considering direct funding for quantum technology companies, though officials denied it. This week, an interview in a common publication with a Nobel Prize winning physicist revived those discussions. The researcher said the administration is concerned about China’s progress in quantum technology and that policymakers are “now moving on to quantum,” exploring ways to support the sector.
This renewed attention has boosted investor hope, yet most of the enthusiasm appears to be driven by speculation. D Wave currently holds a market capitalization of nearly USD 9 billion, despite generating USD 24 million in revenue over the past 12 months and reporting a net loss of almost USD 400 million during the same period. Analysts warn that many challenges remain and that it is still unclear whether commercial quantum computing can be achieved at scale, adding to the uncertainty surrounding the stock’s long-term outlook.
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