Bank of America just raised its EUR/USD forecast
PALO ALTO - D-Wave Quantum Inc. (NYSE:QBTS), a quantum computing company with impressive gross profit margins of 83% and strong revenue growth of 122% in the last twelve months, announced Wednesday a new strategic development initiative focused on advanced cryogenic packaging to accelerate both gate model and annealing quantum processor development. According to InvestingPro data, the company maintains a robust financial position with a current ratio of 20.73, indicating strong short-term liquidity.
The quantum computing company, now valued at approximately $5.6 billion, is expanding its multichip packaging capabilities, equipment, and processes to scale its quantum processor development. As part of this initiative, D-Wave is leveraging expertise from NASA’s Jet Propulsion Laboratory (JPL), using JPL’s superconducting bump-bond process to demonstrate end-to-end superconducting interconnect between chips. For detailed analysis of D-Wave’s technological developments and financial metrics, InvestingPro subscribers can access comprehensive research reports and real-time financial data.
D-Wave believes these superconducting bump bonds will be crucial for scalable control of fluxonium and interconnectivity in multichip quantum processor architectures. The company is also acquiring equipment to increase circuit densities in its superconducting printed-circuit-board manufacturing.
"Scaling both annealing and gate-model quantum computers requires high performance packaging," said Dr. Trevor Lanting, chief development officer at D-Wave. "We believe this strategic initiative will allow us to further extend our leadership position in quantum systems technology development and support our exciting and aggressive product roadmap on the path to 100,000 qubits." The company’s ambitious plans have contributed to its remarkable stock performance, with a 213% return over the past six months, though current valuations suggest the stock may be overvalued.
Packaging quantum processors involves specialized requirements, including compatibility with ultra-low temperature operation, extremely low magnetic fields, and fully superconducting interconnects. D-Wave’s solution encompasses cryogenic compatible mechanical and electromagnetic design that achieves lower qubit temperatures than most in the industry.
The initiative builds on D-Wave’s existing technology leadership in superconducting cryogenic packaging while maintaining and expanding fundamental components of its supply chain, according to the company’s press release statement. Despite the company’s technological advances, investors should note that analysts do not anticipate profitability this year, though revenue growth forecasts remain positive.
In other recent news, D-Wave Quantum Inc. completed a $400 million "at-the-market" equity offering, selling shares at an average price of $15.18 per share. This offering marked a significant premium compared to a previous $150 million offering completed in January, which had an average price of $6.10 per share. Analyst firms have been active in evaluating D-Wave Quantum, with Rosenblatt Securities initiating coverage with a Buy rating and a $30 price target, citing the company’s focus on quantum annealing technology. B. Riley also raised its price target for D-Wave Quantum to $22 from $20, maintaining a Buy rating. Cantor Fitzgerald initiated coverage with an Overweight rating and a $20 price target, emphasizing the economic implications of quantum computing. Additionally, Benchmark increased its price target to $20 from $14, following D-Wave’s memorandum of understanding with Yonsei University and Incheon Metropolitan City to boost quantum computing adoption in South Korea. These developments reflect growing interest and investment in D-Wave Quantum’s potential within the quantum computing sector.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.