Key Takeaways
- Mizuho Securities lifted QBTS price target to $35 from $29 while keeping Outperform rating
- D-Wave unveiled its quantum computing strategy at inaugural Analyst Day held June 1, 2026, at NYSE
- Updated development plan targets 10 logical qubits by 2030, expanding to 100 by 2032
- Company projects gross margins between 65–75% for QCaaS operations long-term
- Wall Street consensus stands at Strong Buy with $38.27 average target on TipRanks
Mizuho Securities analyst Vijay Rakesh boosted his price objective for D-Wave Quantum (QBTS) to $35 from $29 this Monday, maintaining his Outperform stance after attending the company’s inaugural Analyst Day presentation.
With QBTS shares changing hands at $23.37 when the research note published, Rakesh’s revised target represents approximately 50% appreciation potential. The stock currently trades about 50% beneath its $46.75 52-week peak and has declined 10.6% since the start of the year.
Rakesh brings considerable credibility to his analysis — he’s positioned at #4 among 12,304 analysts monitored by TipRanks, sporting a 73% accuracy rate and delivering an impressive 83.20% average return per recommendation.
D-Wave convened its Analyst Day on June 1, 2026, at the New York Stock Exchange, where it outlined a comprehensive dual-platform quantum computing approach encompassing both its current annealing technology and an emerging gate-based quantum computing initiative.
The company’s development timeline calls for introducing 17-qubit and 49-qubit platforms in late 2026 and 2027, respectively, before unveiling a 181-qubit system in 2028. This 2028 release is projected to feature D-Wave’s inaugural error-corrected logical qubits.
Executives aim to slash error rates by over 2,000-fold, anticipating fault-tolerant quantum algorithms arriving by 2030. Practical quantum chemistry and quantum AI implementations are scheduled for 2032.
The revised gate development roadmap now specifies achieving 10 logical qubits by 2030, with expansion to 100 by 2032. Earlier developmental benchmarks remain unchanged.
Twin-Platform Approach and Industry Potential
D-Wave stands alone as the sole provider delivering both annealing and gate-based quantum computing solutions. Rakesh identifies this dual capability as a significant competitive advantage.
The total accessible quantum computing market is projected to reach $450–850 billion by 2040. Gate-based architectures are anticipated to capture approximately 75% of this opportunity, supplementing annealing applications.
Regarding annealing technology, D-Wave’s Advantage2 platforms are presently commercially deployed for optimization challenges including scheduling and routing operations. System uptime exceeds 99.9%.
D-Wave showcased quantum error correction cycle durations below 5 microseconds and emphasized superior error-reduction performance compared to rival methodologies.
Revenue Projections and Profitability Outlook
D-Wave established long-range gross margin objectives of 65–75% for Quantum Computing as a Service, 40–50% for Professional Services, and 75–90% for Computing Systems.
The organization presently maintains a 66% gross profit margin and possesses more cash than outstanding debt. Each QCaaS platform is projected to produce $25–30 million in yearly revenue. D-Wave currently operates four quantum systems accessible via cloud infrastructure.
Research and development expenditures will constitute the primary operating cost as D-Wave pursues its 2030 qubit objectives.
In additional recent news, D-Wave disclosed intentions to obtain $100 million through the U.S. CHIPS and Science Act, allocating equity to the U.S. Department of Commerce within this framework.
Rosenblatt and Stifel both sustained Buy recommendations after the Analyst Day, establishing price targets at $43 and $35 respectively.
QBTS currently holds a Strong Buy consensus rating on TipRanks derived from 12 Buy recommendations and one Hold. The $38.27 average price objective suggests 63.8% upside potential from present trading levels.
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