D-Wave Quantum Inc. has emerged as one of the most talked-about stocks in the quantum computing industry, a space investors are watching closely with anticipation. There are arguments to be made on both sides as to whether D-Wave is as revolutionary as some investors suspect; more bearish investors are likely to take the side of short sellers like Kerrisdale Capital.
One thing these debates about D-Wave often leave out, though, is how the company is positioned against other rivals in the quantum computing space. It is, in some ways, easiest to make a direct comparison against other (relatively) smaller firms like IonQ Inc. and Rigetti Computing Inc (NASDAQ:RGTI).
Like D-Wave, these companies focus exclusively on elements of quantum computing. Investors considering stocking up on shares of D-Wave, or of one or more of its rivals, should also keep in mind that a growing number of legacy tech firms like Microsoft Corp (NASDAQ:MSFT). also have quantum operations.
How D-Wave Stacks Up Against IonQ
D-Wave focuses on annealing technology, while IonQ specializes in a form called trapped-ion quantum computing. Trapped-ion is a popular choice among quantum researchers for its high fidelity and long coherence times, while annealing is more focused on optimization problems. So far, IonQ’s product offering includes quantum systems like Forte and access to its quantum computers via the cloud.
In some ways, IonQ’s financial position is stronger than D-Wave’s. IonQ, like D-Wave, has yet to achieve consistent profitability. In the latest quarter the company generated under $8 million in revenue while facing losses of more than $75 million.
Still, its revenue performance throughout 2024 exceeded guidance, as the company generated about $43 million in revenue for the year. Better still, IonQ boosted its full-year 2025 revenue prediction to a range of $75 million to $95 million, meaning the company could at least double its revenue year-over-year (YOY).
IonQ’s cash holdings are robust; as of the end of 2024, it had nearly $364 million in cash and equivalents. D-Wave held about $304 million in cash as of the end of the first quarter of 2025.
Both D-Wave and IonQ have engaged in long-term partnerships that could significantly benefit each business. In the case of D-Wave, a partnership with Carahsoft Technology could help to make D-Wave’s products more widely available to the public sector.
IonQ, on the other hand, has announced a new quantum application development center in collaboration with AstraZeneca (NASDAQ:AZN) to help to facilitate drug discovery. Both partnerships are in pretty early stages.
QBTS shares have spiked by nearly 32% year-to-date (YTD), while IonQ stock is down about 21% over the same period. QBTS enjoys a Buy rating with all six analysts reviewing the firm viewing shares positively; IonQ has a Moderate Buy based on four Buy ratings and two Holds.
Comparing D-Wave and Rigetti
Rigetti is another of D-Wave’s primary competitors in the quantum space. Rigetti focuses on full-stack quantum-classical computing, an approach that integrates quantum processors with classical computing systems.
Rigetti has faced similar financial hurdles to D-Wave and IonQ. Across all of 2024, the firm generated just $10.8 million in revenue against net losses of $201 million. Rigetti’s revenue may be heading in the wrong direction; $10.8 million for the full year 2024 was down about 10% compared with the prior year.
Compounding matters, revenue for the first quarter of 2025 was just $1.5 million, down by more than 50% YOY. Still, D-Wave’s full-year 2024 revenue was just $8.8 million, lower than Rigetti’s, although D-Wave experienced flat revenue performance YOY.
Rigetti’s cash position was lower than both D-Wave’s and IonQ’s, as the company had $217.2 million in cash reserves as of the end of 2024.
One of Rigetti’s major accomplishments in recent years is a partnership with Quanta Computer, in which the latter company provided Rigetti $35 million to speed up the development and commercialization of its quantum products. Still, Rigetti’s share price has suffered due to its financial performance.
RGTI shares are down more than 41% YTD as the company has relied on accounting gains for profit. While all three of these firms may give investors pause about financial sustainability, Rigetti could currently be flashing the biggest warning signs of all.
Proceed With Caution, But Don’t Ignore the Potential
The quantum computing space remains one of the tech industry’s most speculative yet potentially transformative sectors. D-Wave Quantum Inc. stands out thanks to its unique annealing-based approach and public sector partnerships, but it’s not alone. Competitors like IonQ and Rigetti offer alternative technologies and strategies, each with strengths and significant financial hurdles.
While IonQ appears to be in the strongest financial position today, D-Wave’s upward stock momentum and bullish analyst consensus shouldn’t be ignored. Rigetti, meanwhile, may require the most scrutiny from prospective investors.
Ultimately, any investment in quantum computing firms, including D-Wave, demands a high tolerance for risk and a long-term outlook. As the technology matures and commercial applications become more tangible, today’s volatile valuations could give way to significant breakthroughs.
Investors should consider current fundamentals, market sentiment, and strategic partnerships when deciding whether to invest in this emerging frontier.
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