D-Wave Stock Gets A Price Target Hike On Scoring South Korea Quantum Deal: Stock Up 85% Year-To-Date, But Retail Remains Wary

Benchmark’s David Williams raised the price target, citing a strategic MOU with South Korean partners that could drive significant revenue.

Shares of D-Wave Quantum Inc. (QBTS) gained nearly 2% in Wednesday’s pre-market trading session after the stock received a price target hike from Benchmark.

Benchmark analyst David Williams hiked QBTS' stock price target to $20 from $14, while maintaining a ‘Buy’ rating on the stock, according to The Fly. 

This update follows D-Wave’s announcement of a memorandum of understanding (MOU) with Yonsei University and Incheon Metropolitan City in South Korea, aimed at advancing the use of quantum computing. 

Although the MOU is non-binding, the research firm considers it a significant strategic milestone that demonstrates the global relevance of D-Wave’s technology. 

More importantly, it lays the groundwork for a future sale and deployment of an Advantage2 quantum system. 

Through the MOU, the trio plans to cooperate on scientific research, education, and workforce training focused on quantum technologies. 

D-Wave will offer access to its systems and software tools, enabling researchers to explore applications in sectors like life sciences and advanced materials.

According to Williams, such a system could generate tens of millions in revenue and serve as a cornerstone of D-Wave’s ecosystem strategy in a technologically advanced market.

D-Wave is developing both annealing-based and gate-model quantum technologies. 

In May, the company announced that a study published in the journal Science validated its annealing quantum computer’s ability to surpass one of the world’s top classical supercomputers in tackling complex simulations of magnetic materials.

Quantum computing firms are gaining momentum as quantum systems show promise in tackling highly complex problems that traditional computers can't efficiently solve. 

This growing capability is fueling innovation across multiple sectors and has sparked a surge in funding and research efforts.

Nvidia CEO Jensen Huang has recently shifted his tone on quantum computing, expressing optimism about its progress and suggesting that the technology may begin addressing real-world challenges sooner than previously expected.

On Stocktwits, retail sentiment toward D-Wave Quantum remained in ‘bearish’ territory.

D-Wave Quantum stock has gained over 85% year-to-date and thirteenfold in the last 12 months.

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