Key Takeaways
- Mizuho Securities elevated QBTS price target to $35 from $29 while reaffirming Outperform rating
- D-Wave conducted its inaugural Analyst Day event on June 1, 2026, at NYSE headquarters
- Revised technology roadmap details pathway to 10 logical qubits by 2030, expanding to 100 by 2032
- Company projects QCaaS division gross margins between 65–75% over the long term
- Wall Street analysts award QBTS a Strong Buy rating with $38.27 average target on TipRanks
Mizuho Securities’ Vijay Rakesh upgraded his outlook on D-Wave Quantum (QBTS) this week, lifting his target price from $29 to $35 after attending the company’s inaugural Analyst Day presentation. The Outperform rating remains unchanged.
At the time of Rakesh’s analysis, QBTS shares were trading around $23.37, positioning the updated target approximately 50% above market levels. The stock currently trades roughly 50% off its 52-week peak of $46.75 and has declined 10.6% since the start of the year.
Rakesh brings considerable credibility to his forecast — he’s positioned at #4 among 12,304 analysts monitored by TipRanks, boasting a 73% accuracy rate and delivering an impressive 83.20% average return across his recommendations.
The inaugural Analyst Day took place at the New York Stock Exchange on June 1, 2026, where D-Wave outlined its comprehensive dual-platform approach to quantum computing, encompassing both its established annealing technology and an emerging gate-based quantum computing initiative.
The company’s development timeline includes rolling out 17-qubit and 49-qubit systems during late 2026 and throughout 2027, culminating in a 181-qubit platform scheduled for 2028. This 2028 milestone represents D-Wave’s initial deployment of error-corrected logical qubits.
Leadership outlined ambitions to decrease error rates by over 2,000-fold, with fault-tolerant quantum algorithms anticipated by 2030. Practical applications in quantum chemistry and quantum artificial intelligence are projected for 2032.
The gate-based technology roadmap now reflects an objective of 10 logical qubits by 2030, subsequently expanding to 100 logical qubits by 2032. Previously announced development milestones continue as planned.
Dual-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 unique positioning as a significant competitive advantage within an increasingly competitive landscape.
The projected quantum computing total addressable market ranges between $450 billion and $850 billion by 2040. Gate-based architectures are anticipated to capture approximately 75% of this market opportunity, representing additional growth beyond annealing applications.
Regarding annealing technology, D-Wave’s Advantage2 platforms are presently available commercially and deployed for optimization challenges including scheduling and routing operations. System uptime consistently exceeds 99.9%.
The organization showcased quantum error correction cycle durations below 5 microseconds and emphasized superior error-reduction performance compared to alternative methodologies.
Revenue Projections and Profitability Outlook
D-Wave articulated long-range gross margin expectations spanning 65–75% for its Quantum Computing as a Service offering, 40–50% for Professional Services operations, and 75–90% for Computing Systems sales.
The organization currently maintains a 66% gross profit margin and possesses greater cash reserves than outstanding debt. Individual QCaaS systems are projected to produce $25–30 million in annual recurring revenue. D-Wave presently operates four quantum computing systems accessible via cloud infrastructure.
Research and development expenditures will continue representing the primary operating expense category as the organization progresses toward its 2030 qubit objectives.
In additional recent announcements, D-Wave revealed intentions to obtain $100 million in capital through the U.S. CHIPS and Science Act program, allocating equity shares to the U.S. Department of Commerce as part of this funding arrangement.
Rosenblatt and Stifel both reaffirmed Buy recommendations following the Analyst Day event, establishing price targets at $43 and $35 respectively.
QBTS currently holds a Strong Buy consensus rating on TipRanks supported by 12 Buy recommendations and a single Hold rating. The $38.27 average price target suggests 63.8% appreciation potential from present trading levels.
