D-Wave Quantum (QBTS) Expands In Italy, Is The Stock Still Cheap?

D-Wave Quantum (QBTS) has delivered its Advantage2 annealing quantum computer to Lombardy, Italy, under a €10 million agreement with Swiss Quantum Technology SA, expanding access for European researchers and businesses.

For investors, the commercial wins in Italy, Arkansas and with SkyWater are landing at a time when D-Wave Quantum’s share price has come under pressure, with the stock down 33.41% on a 1 month share price return and 58.12% on a year to date share price return. At the same time, the 3 year total shareholder return is very large at around 14x, which hints that recent declines, including an 8.08% 1 day share price return drop and 19.15% 7 day share price return fall to US$11.78, may reflect changing risk perceptions after the class action filing as much as shifting views on the company’s growth potential.

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For D-Wave Quantum, a share price that has fallen sharply while new deals keep landing raises a simple question. Is the latest slide pointing to cracks in the business, or is it just sentiment swinging after the lawsuit headlines?

Most Popular Narrative: 67% Undervalued

On the widely followed Simply Wall St narrative, D-Wave Quantum screens as undervalued, with a fair value of $35.24 against the last close at $11.78. This comparison highlights how much future execution and risk is being priced in today.

Growing global adoption of quantum optimization for high value logistics, manufacturing and defense workflows, evidenced by production grade deployments such as BASF, Davidson and North Wales Police, should expand recurring QCaaS usage and may support sustained double digit revenue growth.

See why 108 investors see D-Wave Quantum as 67% undervalued.

Result: Fair Value of $35.24 (UNDERVALUED)

Still, D-Wave Quantum’s story can break if big one off system deals slow, or if rising R&D and sales costs keep widening losses instead of scaling revenue.

Find out about the key risks to this D-Wave Quantum narrative.

Next Steps

Mixed signals around D-Wave Quantum can tempt you to lean hard either bullish or bearish, so move quickly to weigh the data yourself and pressure test the story against the 1 key reward and 2 important warning signs in the 1 key reward and 2 important warning signs.

Looking for more investment ideas beyond D-Wave Quantum?

If D-Wave Quantum has sharpened your interest in future focused themes, broaden your watchlist now so you are not relying on a single story.

• Target potential mispricings in quality businesses by scanning the 33 high quality undervalued stocks that filter for strong fundamentals with room for sentiment to catch up.
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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