D-Wave (QBTS) just gave Wall Street reason to take quantum seriously

D-Wave Quantum (QBTS) stock is on a tear after releasing a study showing that business leaders are increasingly betting on quantum computing.

Of the 400 executives surveyed across North America, Europe, and Asia Pacific, nearly half of those already implementing or planning to adopt quantum optimization in the next two years expect a return of between $1 million and $5 million.

It’s not just wishful thinking either.

81% said they’ve maxed out what classical computing can offer for optimization. Over half (53%) are planning to incorporate quantum workflows, and another 27% are actively considering it.

Among respondents, 50% said they believe quantum computing will be disruptive for their industry. A quarter went further, calling it a “game changer.”

The bottom line is that more than 75% of business leaders surveyed are preparing to go quantum.

Baratz said the study reflects growing awareness that quantum isn’t just an R&D buzzword anymore

“Yesterday's legacy computing solutions are struggling to keep pace with modern business,” said D-Wave CEO Dr. Alan Baratz. “Leaders are increasingly recognizing that annealing quantum computing can play a pivotal role in solving business-critical problems now.”

Although the company funded its own survey, Wall Street didn’t seem to care.

On the same day the results dropped, Canaccord Genuity’s Kingsley Crane initiated bullish coverage, praising D-Wave as already “solving problems for customers” and, more important, “getting paid to do so.”

After yesterday’s rally, D-Wave stock is up 141.7% this year.

Commercial quantum is already here

D-Wave has a key differentiator in a space where most quantum firms are years away from viable commercial applications.

The company is out front thanks to its annealing-based systems, which are easier to scale than gate-based architectures used by rivals like IonQ (IONQ), Rigetti Computing (RGTI), and IBM (IBM).

Baratz has pitched D-Wave’s approach as the first to market and the first to revenue.And that’s already happening.

D-Wave recently sold its Advantage2 system to Davidson Technologies in Huntsville, Alabama, which is a deal with potential military applications. The company says it’s helping the U.S. government develop real-world quantum applications in secure environments, especially around optimization problems.

Crane acknowledged that valuations in the quantum space are lofty, especially since most players aren’t profitable, but thinks D-Wave’s early lead earns it a spot as a go-to quantum bet in investor portfolios.

”This is a space worthy of inclusion,” he wrote.