D-Wave Quantum QBTS or D-Wave is advancing its push toward commercial, fault-tolerant quantum computing. The company recently laid out a new gate-model roadmap, targeting 100 logical qubits capable of successfully performing over 1 million operations by 2032. The strategy builds on D-Wave’s expertise in high-coherence dual-rail qubits and quantum error correction, while leveraging its expertise in scaling and commercializing superconducting quantum systems.
At its first Investor Day on June 1, the company detailed a series of technical milestones underpinning this roadmap, including a 17-physical-qubit system in 2026 that supports logical error rates two times lower than physical error rates. D-Wave also expects to complete a 49-physical-qubit system in 2027, capable of a 20-fold error reduction factor and a 181-physical-qubit system in 2028 that can deliver a 2,000-fold error reduction factor.
Unlike many industry peers that focus on scaling physical qubits, D-Wave is pursuing an approach centered on reducing errors at the hardware level. Its dual-rail qubit architecture incorporates error detection directly into the qubits, allowing errors to be detected during computation at the single-qubit level.
According to D-Wave, its dual-rail qubits can identify approximately 90% of errors as they occur, helping reduce the number of physical qubits required to perform error correction. This is in contrast to many other gate-model hardware modalities that cannot detect qubit errors. The company has also demonstrated 99.9% two-qubit fidelities with error detection, meaning physical errors occur only about one in every 1,000 operations.
Also, the roadmap calls for achieving a Lambda of 10, which D-Wave expects will reduce errors by a factor of 10 for each increment in error correction, making it possible to achieve fault-tolerant quantum computing with significantly fewer physical qubits.
What QBTS’ Peers Are Up To?
IonQ IONQ, last month, marked the commercial launch of Interferometric Synthetic Aperture Radar (InSAR) capabilities through its space missions line. The offering enables millimeter-precision ground deformation monitoring with fully automated tasking and data delivery, allowing customers to detect and track physical change on the Earth’s surface consistently, at a frequency and scale never previously available from a commercial SAR provider. IonQ’s InSAR solution removes manual coordination and long revisit intervals.
IBM IBM has announced plans to invest more than $10 billion in quantum computing over the next five years, spanning research and development, capital expenditure, manufacturing scaling, ecosystem partnerships and M&A. Collectively, these areas are designed to speed up IBM's quantum roadmap beyond its goal of delivering the first large-scale, fault-tolerant quantum computer in 2029 and bolster U.S. quantum leadership.
QBTS Price Performance, Valuation & Estimates
Over the past three months, D-Wave shares have rallied 47.4%, well ahead of the industry’s 3.6% growth.
Image Source: Zacks Investment Research
In terms of valuation, D-Wave is trading at a forward two-year Price/Sales (P/S) of 164.19X, significantly above its median and industry average.
Image Source: Zacks Investment Research
Estimates for D-Wave’s full-year 2026 and 2027 earnings are showing a mixed trend over the past 90 days.
Image Source: Zacks Investment Research
D-Wave currently carries a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Radical New Technology Could Hand Investors Huge Gains
Quantum Computing is the next technological revolution, and it could be even more advanced than AI.
While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.
Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power .
Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.
See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
International Business Machines Corporation (IBM): Free Stock Analysis Report
IonQ, Inc. (IONQ): Free Stock Analysis Report
D-Wave Quantum Inc. (QBTS): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).