This Quantum Computing Leader Is up 3,310% Since 2023. Is It Too Late to Buy?

Quantum computing stocks have soared in recent years, and D-Wave Quantum (NYSE: QBTS) is one of the most successful. While volatile, the company's share price is up 3,310% over the last three years (as of May 18).

Early D-Wave investors are sitting on incredible returns, but with a $7 billion market cap and just $24.6 million in revenue last year, this company now trades at an extremely high valuation. Is there still a case for investing, or is it too late?

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The bull case: Record growth and a high-profile acquisition

D-Wave may still have light sales numbers given its market cap, but to its credit, those numbers have been growing. Its $24.6 million in revenue for fiscal 2025 was a 179% year-over-year increase.

Revenue for the first quarter of 2026 was down 81% year over year to $2.9 million. That might seem worrisome, but quantum computing companies tend to have lumpy sales, so you can't learn too much from a single quarter. More important than the top line was D-Wave's bookings for the quarter, which hit a record of $33.4 million. Those bookings, which is how D-Wave refers to future customer orders, exceeded the company's total bookings in fiscal 2024 and 2025 combined.

D-Wave management also landed a few significant deals in the first quarter. It acquired Quantum Circuits Inc. for $550 million in a merger that makes D-Wave the only dual-platform quantum company -- one that has annealing and gate-model quantum computers.

In addition, D-Wave and two defense companies, Davidson Technologies and Anduril, announced a collaboration. The three will work together on quantum applications for U.S. air and missile defense.

Risk factors: Mounting losses and tough competition

D-Wave is unprofitable, and its losses are outpacing its revenue growth. Net losses in 2025 were $355.1 million, up from $143.9 million in 2024. It reported a more modest loss of $18.4 million in the first quarter of 2026, although that was still an increase of $13 million year over year.

This is normal for a pure-play quantum computing company, but it's worth noting that competitor IonQ has had more financial success than D-Wave. IonQ reported $130 million in 2025 revenue, though it posted a net loss of $510.4 million. Still, quantum computing is a competitive space. The fact that IonQ is far ahead of D-Wave in terms of sales gives it a significant edge.

Is it too late to buy D-Wave?

Quantum computing is still in the early stages, which has pros and cons when evaluating D-Wave as an investment. Since it's early, there's still ample growth potential. But it's also unclear when or if quantum computing will become commercially viable. Even if it does, that doesn't mean D-Wave will be the winner. As mentioned, this is a competitive space, and a quantum computing ETF is worth considering to avoid the risk of picking a single company.

Growth is largely priced in already in D-Wave stock, which trades at about 249 times sales. A lot needs to go right for it to be worth the current price. D-Wave's technology and bookings growth are both legitimate reasons it could do well, but given the risk, you should stick to a small position if you decide to invest.

Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.