D-Wave Quantum leads massive rally in quantum computing stocks as its revenue outlook goes parabolic

D-Wave Quantum is ripping higher, leading an across-the-board surge in pure-play quantum computing stocks, after its Q4 results indicated a rapid improvement in its sales outlook.

Bookings, which are the value of customer orders received that are expected to be converted into revenues in the future, soared. At $18.3 million, these bookings are now higher than all the revenue the company has generated over the past two years.

Peers IonQ, Rigetti Computing, and Quantum Computing are all up double digits as of midday.

“Our mission is unwavering: to help organizations realize the benefits of quantum computing now,” CEO Alan Baratz said. “With record bookings, a record cash position, and an unequivocal demonstration of our quantum system outperforming classical on a real-world problem, our progress toward achieving that mission is clear.”

The hype around the possibility of quantum computing in the wake of Alphabet’s Willow chip sparked a run-up in the shares of companies operating in the space. But investor focus shifted to the lack of commercial utility of the technology to date after Nvidia CEO Jensen Huang said it would be decades before quantum computing would be “very useful.” (The chip designer is hosting a “Quantum Day” to recognize and celebrate the progress in this industry at its conference next week.) Quantum computing stocks proceeded to tumble thereafter, with losses piling up during the market’s recent rout.

In an interview with Sherwood News following Huang’s remarks, Baratz pointed to the different strategy D-Wave takes in developing the technology (preferring annealing to a gate-based approach) as a critical differentiating factor that enables the company to be “commercial and delivering useful results today.”

Ahead of its earnings, D-Wave recently announced “the world’s first and only demonstration of quantum computational supremacy on a useful, real-world problem.”

That progress, and the surge in bookings, serve as green shoots for the commercial viability of quantum computing, even though we’re still talking fairly small numbers here.