D-Wave Quantum: Wait For The Bubble To Burst First

(7min)

Summary

  • D-Wave Quantum Inc. has demonstrated remarkable technological breakthroughs, but has the FOMO taken a bit way too far?
  • Despite a record $18.3M in Q4 bookings, D-Wave's projected revenue of $34.4M by FY2026 doesn't quite justify its $3B+ market cap.
  • Investors should be cautious of the early quantum computing hype, as QBTS's forward revenue multiple of nearly 140x far exceeds its tech sector peers.
  • I argue why investors should wait and bide their time for the hoopla bubble to implode first, even before considering trying to ride QBTS stock subsequently.
  • Looking for a helping hand in the market? Members of Ultimate Growth Investing get exclusive ideas and guidance to navigate any climate. Learn More »

3D illustration of a working quantum computer. Quantum computing concept

adventtr

Quantum computing investors have a lot to look forward to this week, as the industry luminaries will grace arguably the most important semiconductor company conference in March, more affectionately dubbed the "Super Bowl of AI": Nvidia

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This article was written by

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JR Research is an opportunistic investor. He was recognized by TipRanks as a Top Analyst. He was also recognized by Seeking Alpha as a "Top Analyst To Follow" for Technology, Software, and Internet, as well as for Growth and GARP.

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He focuses on identifying growth investing opportunities that present the most attractive risk/reward upside potential. His approach combines sharp price action analysis with fundamentals investing.

He tends to avoid overhyped and overvalued stocks while capitalizing on battered stocks with significant upside recovery possibilities.

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Analyst’s Disclosure:I/we have a beneficial long position in the shares of NVDA either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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