Why D-Wave Quantum Stock Popped Today

D-Wave Quantum Inc. (QBTS, NYSE) surged 7.2% following a new outperform rating from BMO Capital analyst Harsh Kumar in his initiation of coverage. Kumar pointed to the company's commercial quantum computing revenues and what he termed revolutionary technology as key factors supporting the bullish call.

The upgrade comes with caveats. Kumar projects D-Wave will remain unprofitable through 2030, though he expects sales to climb to $444 million by that year. The company currently operates at a loss, and the analyst does not anticipate a path to profitability within the next six years despite the anticipated revenue expansion.

BMO Capital's entrance into coverage marks a vote of confidence in D-Wave's commercial traction in quantum computing, a sector where many competitors remain pre-revenue. The $444 million sales projection implies substantial growth from current levels, though the extended timeline to breakeven suggests the company will need continued capital to fund operations.