A Big-Name Analyst Started D-Wave Quantum as a Buy. It Might Have Further to Fly

"With a recent analyst starting shares of D-Wave Quantum as a buy, I think there's plenty of reason to go against the grain, so as long as you know what you're signing up for with the hyper-volatile, pre-revenue quantum computing pure-plays as they look to shift gears from pre-revenue to commercialization. If the growth spikes, so too could shares, even if investors are overly concerned about valuations across the board."

"Even in times of industry-wide skepticism or bubble busts, there can be winners that arise. The key is picking the winners. And while it's hard to do so, I do think that D-Wave Quantum stands out as one of the names that's more or less a must-watch if you're looking to learn more about the state of quantum computing as it looks to approach some sort of inflection point that many folks (think Jensen Huang) have spoken of lately."

"Of course, it's hard to chase speculative momentum stocks, especially as the mood for such speculation becomes dampened going into the year's end. Indeed, it's almost as though investors are expecting AI and most of tech in a bubble that's only destined for downside. While the stakes, risks and all the sort might be elevated, and given the fact that many profound technologies do lead to speculative bubbles that burst, the big question is what inning"

Quantum computing stocks experienced significant volatility with a recent broad rebound and D-Wave Quantum rising over 50% from November lows. Some quantum innovators may still be in early stages even as the technology approaches a potential inflection point next year. An analyst initiating D-Wave as a buy suggests contrarian opportunity for investors willing to accept hyper-volatility and pre-revenue risk. Several pure-play quantum firms are transitioning focus from pre-revenue toward commercialization, which could drive sharp growth. Market sentiment toward AI and growth has cooled, increasing caution around speculative momentum stocks heading into year-end. Elevated stakes and the history of tech bubbles emphasize selective stock picking.

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