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Why Is D-Wave Quantum (QBTS) Stock Up 20% Today?

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  • D-Wave Quantum (QBTS) stock is rocketing higher today, up more than 20% this afternoon.
  • This move follows the release of a new prototype that’s garnering a lot of hype in the market.
  • Here’s what investors need to know about the news driving today’s impressive move in QBTS stock.
QBTS stock - Why Is D-Wave Quantum (QBTS) Stock Up 20% Today?

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Many growth stocks are sending mixed signals in today’s session, with the overall Nasdaq roughly flat at the time of this writing. However, quantum computing stocks are seeing a big uptick in today’s session, with D-Wave Quantum (NYSE:QBTS) leading the way. As of this writing, QBTS stock is up more than 20% as investors continue to pile into the high-potential name.

This move appears to be tied to an announced prototype release from D-Wave Quantum. The company unveiled the availability of its 1,200+ Qubit Advantage2 prototype, calling this system the “most performant system available to customers today.”

Quantum computing is a space that’s still nascent and very hard to value. Accordingly, volatility is common in this sector and something to which D-Wave investors have grown accustomed. Since the company’s special purpose acquisition company (SPAC) merger in mid-2022, shares of QBTS stock have plunged from its SPAC IPO price of $10 per share to well below $1 per share, where the stock has traded for much of the past year.

However, this surge in D-Wave today has taken the small-cap stock out of penny stock and delisting territory and back into the investor spotlight. Let’s dive into what investors should make of this announcement and QBTS stock following this surge.

QBTS Stock Surges on Prototype Announcement

With a press release as well as a post on X (formerly Twitter), D-Wave appears to be looking to build excitement around its new quantum computing prototype. This prototype will be made available via D-Wave’s Leap real-time quantum cloud service. The company also announced that this computing prototype will be available to existing customers, with those looking to test-drive the prototype able to do so for free via a trial.

To be honest, I have yet to test drive quantum computing technology myself and I have a feeling many readers are in the same boat. However, the ability to use such platforms to solve difficult optimization problems is clearly intriguing. For those interested in the world of big data and the computational benefits that quantum computing could provide, this is a company that could see increased interest as its prototypes go live.

The thesis behind QBTS stock — and the quantum computing sector in general — may be relatively simple. If end users are able to realize the value of these systems (much in the same way as ChatGPT raised the profile of large language models), perhaps this is the next megatrend on the horizon. Suffice it to say, this is a stock I’ll need to dive into deeper. But today’s price action certainly makes the case that this may be a stock to dive into sooner rather than later.

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On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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