Why D-Wave Quantum Stock Spiked 50% in October

Shares of the quantum computing company D-Wave Quantum (NYSE: QBTS) spiked in October on a wave of positive news for the company, including an innovation award, reports of new sales in Europe, and the potential that the U.S. government may take a stake in the company.

D-Wave Quantum's stock can take wild swings, and with a long list of news events last month, its shares soared by 49.9% in October.

Image source: Getty Images.

Speculation of bank investments, European momentum, and rumors of a government stake

D-Wave's share price began its rapid ascent last month after banking giant JPMorgan Chase said that it would invest $10 billion into companies, including quantum computing and artificial intelligence, as part of a $1.5 trillion Security and Resiliency Initiative over the next decade.

JPMorgan didn't mention D-Wave by name, and the bank will invest in many other sectors -- including pharmaceuticals, manufacturing, defense, and energy -- but D-Wave investors viewed the news as a positive development nonetheless and pushed shares higher on the hopes that the bank will invest in the quantum computing company.

Investors continued their enthusiasm for D-Wave's shares after Fast Company named D-Wave a winner in its 2025 edition of Next Big Things in Tech. The company won the award in the Computing Chips and Foundational Technology category for its Advantage2 quantum computer.

That news was followed by D-Wave's announcement that it had secured a 10 million euro commitment from Swiss Quantum Technology to deploy an Advantage2 quantum computer in Europe. The company said that customers will be able to access the system via D-Wave's Leap quantum computing cloud service.

D-Wave CEO Alan Baratz said in a press release that the agreement is "an important milestone in our ongoing effort to expand global access" to the company's quantum computers.

And finally, D-Wave's stock also rose in October after The Wall Street Journal reported that the U.S. Commerce Department was in talks with some quantum computing companies that would give the government an equity stake in exchange for federal funding. The Commerce Department later denied it was in talks with companies in an email to Reuters.

WSJ reporting said that quantum computing companies, including D-Wave, could receive a minimum of $10 million each in funding from the government. The Trump administration has already shown an interest in taking stakes in companies, including a 10% stake in Intel.

More insight coming

D-Wave will report its third-quarter results on Nov. 6, which will give investors some more insight into how the company is doing. Shares of the company have gained a mind-boggling 3,000% over the past year, and it's clear from October's gains that D-Wave's stock can make big moves on light or speculative news.

While the recent deal with Swiss Quantum Technology is a win for the company, the rest of the October was pretty light or just rumors. All of which means that investors should be careful when considering buying D-Wave shares right now.

JPMorgan Chase is an advertising partner of Motley Fool Money. Chris Neiger has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Intel and JPMorgan Chase. The Motley Fool recommends the following options: short November 2025 $21 puts on Intel. The Motley Fool has a disclosure policy.