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Special Report 3 Key Ways D-Wave Is Developing an Advantage in Quantum ComputingReported by Nathan Reiff. First Published: 1/20/2026. 
Quick Look - D-Wave's 358% trailing-12-month return might scare some investors worried that the company is overhyped, but a number of key developments could continue to position it favorably.
- The company's recent achievement of an important technological milestone with the first scalable on-chip cryogenic control of qubits gives it a key advantage in the push toward commercialization.
- D-Wave's acquisition of Quantum Circuits will also cement its status as a dual provider of both annealing and gate-model tech, at a time when rivals like Rigetti have suffered setbacks.
D-Wave Quantum Inc. (NYSE: QBTS), the $10 billion quantum computing company whose share price has climbed more than 358% in the past 12 months, is aiming to become the go-to quantum firm in a crowded field that includes competitors such as IonQ Inc. (NYSE: IONQ), Rigetti Computing (NASDAQ: RGTI), and others. All of these companies must still convince a broader audience that quantum technology has practical, everyday uses. Still, three recent developments—two clear gains for D-Wave and one setback for Rigetti—could position QBTS as a stock to watch this year. D-Wave Has Entered the Gate-Model Arena Bitcoin just dipped, and while most people are staring at the price, they're missing the real opportunity — this pullback could be the best setup all year for a simple, low-cost strategy that generates steady weekly income without buying crypto, opening an exchange account, or trading options. It uses a small position available in most brokerage accounts, and it's designed to deliver reliable Thursday payouts, even in volatile markets, making this moment especially important for income-focused investors. Watch my Bitcoin Income Briefing here A longstanding critique of D-Wave was that it focused too narrowly on quantum annealing. Annealing can be highly effective for certain optimization tasks, but many analysts and investors viewed it as a potential dead end compared with gate-model technology, which likely has broader applications. D-Wave has been addressing that concern by expanding R&D to include gate-model technology. A major announcement at the start of the year—that the company achieved the first scalable on-chip cryogenic control of qubits—positions D-Wave as a serious gate-model competitor. On-chip control could reduce the need for extensive wiring and bulky cryogenics, a key barrier to scaling quantum chips. With this advancement, D-Wave is positioning itself to lead in both major quantum approaches—annealing and gate-model—a capability other pure-play quantum firms have not yet matched to the same degree. Putting the Cash Reserves to Good Use After accumulating more than $800 million in cash reserves by late 2025, D-Wave began the year with an announcement of a major acquisition. The $550 million purchase of Quantum Circuits Inc., expected to close in January 2026, accelerates D-Wave's path toward large-scale, error‑corrected gate-model systems and strengthens its position in gate-model technology. D-Wave expects the acquisition to help bring gate-model products and services to market in 2026. Details remain limited, but the company is clearly working to broaden its product lineup and attract a wider customer base. That could help lift revenue—which was only $3.7 million in the most recent quarter—and move the company closer to consistent profitability. Rigetti's Delay Could Mean a New Opportunity for D-Wave A third potential advantage for D-Wave is external. In early January, Rigetti said it would delay general availability of its Cepheus-1-108Q 108-qubit system. To reach its stated goal of 99.5% median two-qubit gate fidelity, Rigetti pushed the launch to the end of the first quarter of 2026. The delay alone is not necessarily crippling—companies often adjust timelines to ensure product quality. But coming as D-Wave makes technological progress—and after Rigetti reported about an 18% year‑over‑year sales decline in the most recent quarter—the setback could sway investor sentiment toward D-Wave. Rigetti remains a strong competitor and a favored pick among some analysts and investors. However, with short interest in RGTI up 9.4% in the last month while D-Wave's short interest fell 2.4%, these combined developments could give D-Wave an opening to pull ahead. D-Wave's consensus analyst rating is Moderate Buy, based on 14 Buys among 16 total ratings. Investors should note the company remains speculative: its valuation is very large relative to sales, producing a price-to-sales ratio above 1,143, even as analysts project shares could rise another ~16.8%.
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