Key Points
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D-Wave customer Shionogi won first place in October 2026 for quantum-assisted drug discovery research, and D-Wave also announced a relationship with LG CNS.
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A September 2026 agreement with the U.S. Department of Commerce gives D-Wave access to up to $100 million in CHIPS and Science Act funding.
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D-Wave has an average target price of nearly $35, but the stock trades at a price-to-sales ratio of over 300.
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IonQ and Rigetti Computing may be getting most of the attention in the quantum race, but they’re not the only stocks worth watching. D-Wave Quantum (NASDAQ: QBTS) is seeing stronger demand for its quantum systems while expanding its partnerships.
On Nov. 10, D-Wave’s third-quarter earnings report is expected to be released. If adoption continues and D-Wave delivers on its roadmap, it could be the next quantum stock to soar.
Here’s a closer look at what sets its technology apart.
D-Wave is taking a different approach to quantum computing
What makes D-Wave interesting is that it doesn’t follow the same path as its competitors. The company has built its business around quantum annealing, an alternative approach designed to solve complex optimization problems across many industries.
It’s no surprise, then, that the company has attracted customers across manufacturing, telecommunications, financial services, and more. These industries face problems involving countless variables, making them difficult to solve efficiently using traditional computing.
D-Wave’s Advantage2 quantum computer is already commercially available, and it’s designed exactly to tackle these types of challenges. Further, customers can access its technology through on-premises systems or the company’s Leap quantum cloud service. That gives companies a way to experiment with quantum computing without needing to purchase and maintain their own hardware.
In fact, more businesses are adopting D-Wave’s technology stack.
Commercial adoption is becoming harder to ignore
One of the biggest reasons to pay attention to D-Wave is its growing commercial adoption as businesses are willing to experiment with its technology beyond academic research.
For example, in October 2026, a Japanese pharmaceutical company, Shionogi (OTC: SGIOY), won first place in the Quality of Life category of Japan’s Quantum Computing Challenge for research involving quantum-assisted drug discovery. The research used D-Wave’s quantum technology in a generative artificial intelligence (AI) model designed to help researchers develop potential drug molecules.
With that, D-Wave’s technology is complementing another major technology trend: AI. Instead of competing with traditional computing or AI, the company is exploring how the technologies can work together to tackle problems that are difficult to solve with either approach alone.
D-Wave also announced a strategic relationship with South Korean technology company LG CNS. The two companies plan to combine D-Wave’s quantum technology with LG CNS’s enterprise expertise to develop applications for manufacturing, finance, and retail.
This relationship is significant because LG CNS already has experience implementing optimization solutions for businesses. That could help D-Wave reach customers that might otherwise struggle to integrate quantum computing into their existing operations.
But beyond commercial demand, D-Wave is also seeing stronger government support.
Government backing and partnerships add another growth catalyst
In September 2026, D-Wave finalized an agreement with the U.S. Department of Commerce that provides it with up to $100 million in funding under the CHIPS and Science Act. The funding is intended to accelerate research and development (R&D) across its quantum stack, including its longer-term plans to develop larger and more complex quantum systems.
Like with AI, the government views quantum computing as a strategic asset with potential applications across national security, research, and manufacturing. As a result, increased government support will provide D-Wave with additional resources to carry out its development roadmap.
Meanwhile, D-Wave is strengthening the manufacturing side of its business. It announced a multi-year agreement with SkyWater Technology to develop and manufacture semiconductor processes for its quantum systems.
Notably, SkyWater has already helped manufacture multiple generations of D-Wave’s processors, including those used in its Advantage2 systems. That means the agreement will go a long way in helping D-Wave produce more advanced quantum hardware.
Is D-Wave stock a buy at today’s prices?
Still, owning D-Wave stock comes with risks. D-Wave is an early-stage business with significant R&D expenses, and its ambitious technology roadmap is far from guaranteed. The stock also trades at a price-to-sales (P/S) ratio of about 307 times, so the company has high growth expectations to meet.
Looking ahead, what does Wall Street think about the stock?
The vast majority of Wall Street analysts rate the company a buy, with an average target price of nearly $35. That suggests a potential upside of around 225%. With growing commercial adoption, new government funding, and a manufacturing partner, D-Wave could stand out from IonQ and Rigetti, despite the risks.
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Rick Orford has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.
