D-Wave Quantum Surges Amid Bullish Momentum, Poised for Long-Term Growth Despite Short-Term Risks

Technical Analysis

D-Wave Quantum Inc. (QBTS) closed at $19.24 on July 17, 2025, up 13.78%. The intraday range showed strong bullish momentum with a low of $17.11 and a high near the 52-week peak of $19.53, extremely close to the year’s high of $19.77. The stock recently broke out above its 50-day moving average of $14.55 and is well above the 200-day moving average at $7.36, indicating an established uptrend. However, the 14-day RSI at 76 points to overbought conditions, which may pressure short-term gains or induce a minor pullback. The MACD remains negative over the last three months, suggesting momentum is still catching up despite the recent price surge. Support sits narrowly at $19.04 with no defined resistance currently above, signifying a potential for continued upward movement if the breakout sustains. Volume surged to 101.27 million, significantly above the average of 66.71 million, confirming strong buying interest.

For the next trading day (July 18, 2025), the stock is likely to experience some volatility due to the overbought RSI and stretched gains. Short-term consolidation or a modest retracement toward the stop-loss at $18.57 may occur before further directional decisions are made. Over the coming week, if the company’s momentum and market sentiment remain favorable, the price could sustain near its high range between $19 and $20, testing the psychological $20 level consistent with analyst price targets.

Fundamental Analysis

QBTS operates in the nascent but high-potential quantum computing sector, which is witnessing accelerating investor interest. Fundamental challenges remain visible as the company posts a trailing twelve-month (TTM) EPS of -$0.66 and a negative P/E ratio of -29.15, reflecting ongoing losses typical for growth-stage tech firms. The discounted cash flow (DCF) valuation is also negative (-$0.29 per share), indicating intrinsic value is still under pressure due to negative free cash flows or high capital expenditure burdens.

Despite the lack of current profitability, the stock has surged over 1,000% in the past year on expansion hopes linked to the Advantage2 platform launch and competing directly in a market space alongside IBM and Google’s quantum efforts. Upcoming earnings on August 14, 2025, will be a critical catalyst to validate operational progress and revenue scalability. Sentiment remains bullish as eight analyst coverage entries uniformly categorize QBTS as a “Buy” with a consistent price target of $20, supporting a near-term valuation ceiling in line with market pricing.

intrinsic value appears speculative but promising in a long-term context. Quantum computing’s emerging status implies that QBTS’s financial metrics, such as earnings and cash flows, currently may not reflect its future cash-generating potential. If the company successfully transitions from development to commercial deployment, long-term investors could see substantial value appreciation, given the industry’s transformative potential.

Long-Term Investment Potential

QBTS fits the profile of a high-risk, high-reward growth equity with disruptive technology ambitions. Its elevated stock volatility and negative earnings underline the typical risk profile of an early-stage innovator. The near-term fundamental data do not justify traditional value metrics; however, the rapidly advancing quantum computing landscape and fresh product launches provide a plausible runway for substantial growth and eventual profitability. Long-term investors must weigh the technology’s maturation timeline and competitive landscape risks, including deeper-market players like IBM and Google.

Overall Evaluation

QBTS is classified as a Buy candidate at this stage, reflecting strong positive momentum, constructive analyst consensus, and a solid valuation ceiling around $20. The technical breakout alongside high volume signals investor enthusiasm, while fundamental struggles remain consistent with an early growth phase in a pioneering technology. Price action near resistance and a high RSI warns of potential short-term pullbacks, but the absence of nearest overhead resistance and consistent buy ratings underpin sustained bullishness. Caution is warranted given intrinsic valuation challenges and earnings volatility ahead.

In summary, QBTS combines nascent market potential with strong bullish confirmations, positioning it as an attractive growth play for investors willing to accept near-term volatility for possible long-term gains.