TLDR
- D-Wave CEO Alan Baratz said Nvidia should be “shaking in their boots” over quantum computing’s power efficiency advantages
- D-Wave’s quantum computer uses only 10 kilowatts of power, comparable to just a few GPUs
- D-Wave shares jumped nearly 16% and IonQ rose over 20% on World Quantum Day, April 14
- Nvidia responded by launching “Ising,” open-source quantum AI models for error correction
- D-Wave missed Q4 revenue estimates but bookings surged 471% quarter-over-quarter to $13.4 million
D-Wave Quantum CEO Alan Baratz made a direct challenge to Nvidia at the Semafor World Economy Summit on April 14, saying the chipmaker should be “shaking in their boots.”
Baratz argued that quantum computers use far less power than traditional GPU systems. D-Wave’s quantum computer runs on about 10 kilowatts — similar to five or ten GPUs.
He also claimed the system can solve certain problems in minutes that would take a large GPU cluster nearly a million years to complete.
The comments came on World Quantum Day, and the market responded. D-Wave shares rose nearly 16% on April 14. IonQ climbed over 20% after announcing it had scaled its commercial systems beyond a single processor.
Nvidia did not stay quiet. The company announced “Ising,” a family of open-source quantum AI models focused on error correction.
CEO Jensen Huang said, “AI is essential to making quantum computing practical.” The move signals Nvidia wants a role in the quantum software space, even as it dominates AI hardware.
D-Wave’s Financials: Growth With Losses
D-Wave reported $2.75 million in revenue for Q4 2025, up 19% year-over-year. But that missed analyst estimates of $3.8 million. The company posted an adjusted net loss of $0.09 per share, wider than the $0.05 expected.
Bookings, which represent future contracts, hit $13.4 million in Q4 — a 471% jump from the prior quarter.
D-Wave recently signed a $20 million deal with Florida Atlantic University. The project involves Anduril Industries and Davidson Technologies and focuses on US air and missile defense.
The company also spent $550 million to acquire Quantum Circuits, aiming to move from logistics-focused tools toward systems that can support generative AI workloads.
D-Wave sold its first commercial system to Lockheed Martin back in 2011. It now has over 135 clients and is valued at $5.3 billion.
Analyst Views and Limitations
Wedbush analyst Antoine Legault maintained an Outperform rating with a $40 price target, noting the strong bookings trend despite the revenue miss.
Canaccord Genuity’s Kingsley Crane set a $43 price target and called 2026 a potential landmark bookings year. His bull case points to a $75 pathway.
Crane also cautioned that D-Wave is a “long-term concept stock” trading at 150x projected 2027 sales, and that investors should expect volatility.
Quantum computers are still specialized tools. They are used for research and optimization but cannot yet run large language models.
D-Wave ended the year with $885 million in cash, much of it from share offerings. Management expects expenses to rise 15% each quarter in 2026 as it expands its Florida headquarters and grows its team.
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