D-Wave Quantum Inc. Surges 4.78% Amid Strong Momentum but Cautions on Overbought Conditions

Technical Analysis

D-Wave Quantum Inc. (QBTS) closed at $17.11 on June 2, 2025, posting a 4.78% gain. The stock has demonstrated strong upward momentum since bottoming near $0.75 within the past year, reaching a 52-week high of $19.77. The Relative Strength Index (RSI) at 72 signals a mildly overbought condition, suggesting some near-term consolidation or minor pullback is possible. However, the elevation above both the 50-day ($9.51) and 200-day ($5.18) moving averages reflects robust bullish momentum over intermediate and long-term horizons.

The recent volume of 62.6 million is slightly below the 76.5 million average but remains elevated, confirming persistent investor interest. Key support levels lie at $16.56 and a stop-loss threshold of $16.24, while resistance is near $17.55. The MACD reading (3.28) confirms positive momentum, favoring continuation of the current trend into the next trading day and upcoming week, albeit with potential short-term resistance near $17.55.

Due to the high Average True Range (ATR) value of approximately $10.09, price movements may remain volatile, cautioning traders to anticipate rapid fluctuations despite bullish signals.

Fundamental Analysis

QBTS presents a challenging fundamental profile characterized by a negative trailing twelve months (TTM) EPS of -$0.66 and a negative P/E ratio of -25.92, signifying unprofitability. The discounted cash flow (DCF) analysis suggests an intrinsic value deficit at approximately -$0.79, consistent with ongoing heavy investments in technology development and future growth rather than current earnings. This aligns with the nature of the quantum computing sector, where valuation hinges primarily on growth potential rather than present profitability.

Market capitalization stands near $4.94 billion, a sizable valuation for an emerging technology company, reflecting strong market confidence in its long-term prospects. Recent institutional buying, including disclosures by a major U.S. pension fund, corroborates belief in the company’s disruptive potential. Furthermore, the exponential 1,154% year-to-date return underscores significant market enthusiasm tied to the AI wave and quantum computing innovation themes.

Consensus analyst outlook is bullish, with 8 buys and no sell or hold ratings. The target price range, however, appears subdued ($2.00–$4.00 median $2.50), indicating that analysts may evaluate the stock more conservatively relative to speculative market valuation. The next earnings release on August 7, 2025, will provide key insights into operational progress and may catalyze further price action.

Intrinsic Value and Long-Term Investment Potential

QBTS currently trades well above its DCF-implied intrinsic value, reflecting a premium driven by growth expectations rather than established cash flow. Investors focused on innovation leadership and the rising demand for quantum computing and AI solutions may find long-term value potential, contingent on the company’s ability to monetize its technology and scale operations profitably.

The high volatility and negative earnings define QBTS as a growth-stage equity with substantial risk-reward asymmetry. The sizeable market cap and institutional interest signal confidence in future market penetration, but intrinsic valuation metrics imply continued caution. A sustainable long-term upward trajectory depends on execution milestones, technological breakthroughs, and integration into high-value commercial applications.

Performance Outlook for Next Trading Day and Upcoming Week

Technical momentum and volume suggest QBTS may continue its uptrend short term, with likely attempts to test or briefly breach the $17.55 resistance. RSI considerations hint at a possible minor pullback or sideways trading after this surge to digest gains. Intraday volatility remains high due to the substantial ATR, and traders should expect sharp price swings. Over the week, if support at $16.56 holds amid overall bullish sentiment in tech and AI sectors, the stock may consolidate before challenging previous highs near $19.77.

Overall Evaluation

QBTS qualifies as a Buy candidate given its strong technical momentum, institutional backing, and positioning within a high-growth industry sector. Price action confirms momentum traders remain active, and optimistic market sentiment aligns with the company’s disruptive potential. However, persistent negative earnings, an unfavorable intrinsic value, and valuation driven primarily by speculation introduce elevated risk for conservative investors.

The stock fits well within a growth-oriented portfolio with a tolerance for volatility and long investment horizons, where appreciation depends on future commercialization success and broader adoption of quantum computing technologies. The near-term outlook remains bullish but with caution warranted given overbought technical signals and earnings negative fundamentals.