TLDR
- D-Wave Quantum stock has gained over 2,640% in the past year, attracting investments from billionaire hedge fund managers including Paul Tudor Jones, Ken Griffin, and Israel Englander during Q2 2025.
- D-Wave uses a dual approach to quantum computing, offering both traditional gate-based systems and quantum annealing technology, which allows for easier scaling with more qubits.
- The company reported only $3.1 million in revenue in Q2 against losses of over $167 million, making it a highly speculative investment dependent on quantum computing commercialization.
- JPMorgan Chase recently announced billions in investments into quantum computing as part of national economic security initiatives, potentially creating near-term catalysts for the sector.
- Some experts question whether quantum annealing will remain relevant long-term once gate-based systems become more powerful and better at error correction.
D-Wave Quantum has become one of the top-performing quantum computing stocks over the past year. The company’s shares have risen 2,640% in the 12-month period, drawing attention from Wall Street’s largest hedge funds.
Several billionaire investors made purchases during the second quarter of 2025. Paul Tudor Jones’ Tudor Investment Corp opened a new position with 827,416 shares. Ken Griffin’s Citadel Advisors also initiated a position, buying 84,102 shares.
Israel Englander’s Millennium Management increased its stake by 948% in the quarter. The fund now holds 380,477 shares. These moves suggest institutional interest in the quantum computing sector continues to grow.
D-Wave takes a different approach compared to other quantum computing companies. The firm focuses on two types of quantum systems: gate-based quantum computing and quantum annealing. Gate-based systems are more common across the industry, while quantum annealing is designed for specific optimization problems.
Technology Behind D-Wave’s Systems
Quantum annealing allows computers to scale more easily with additional qubits. Qubits function like traditional computer bits but exist in a state of superposition. This gives them the ability to process more data simultaneously than conventional computers.
The more qubits a quantum computer has, the more powerful it becomes. However, qubits in quantum annealing systems are harder to manipulate than those in gate-based systems. This could make them less effective for certain computing tasks.
Global Quantum Intelligence’s Chief Content Officer Doug Finke spoke about D-Wave’s dual approach in June. He told Investor’s Business Daily that offering both types of systems could make D-Wave stand out. Customers would have more flexibility in choosing the right technology for their needs.
But Finke also noted concerns from some experts. They believe quantum annealing might become obsolete as gate-based systems improve. Once gate-based computers become more powerful and better at correcting errors, they may handle all types of problems effectively.
Financial Performance and Valuation
D-Wave’s market capitalization now stands at $10.8 billion. The company reported $3.1 million in revenue during the second quarter. It posted losses of over $167 million in the same period.
The financial metrics show D-Wave remains far from profitability. Any investment in the stock is essentially a bet on whether quantum computers can be commercialized successfully. The technology is still in early development stages.
Hedge funds typically target returns over 12 to 18-month periods. Their purchases don’t necessarily indicate long-term confidence. They may be reacting to technical trading patterns or expecting near-term catalysts in the sector.
JPMorgan Chase recently announced a major investment initiative related to quantum computing. The bank plans to deploy billions in equity and venture capital into sectors tied to national economic security. Quantum computing was specifically mentioned as a focus area.
This type of institutional funding could provide momentum for quantum computing stocks. It signals growing interest from traditional finance in the technology’s potential applications. D-Wave’s stock price has climbed over 3,460% in the past year, making it one of the sector’s best performers.
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