D-Wave Quantum Inc. (NASDAQ:QBTS) stock rose more than 2% in Tuesday premarket trading as the stock attempted to rebound from a recent pullback. Nasdaq futures slipped 0.02%, while S&P 500 futures fell 0.33%.
Finalizes $100 Million U.S. Quantum Deal
Separately, D-Wave finalized an agreement with the U.S. Department of Commerce that gives the quantum computing company access to up to $100 million in CHIPS and Science Act funding.
The definitive agreement follows a previously announced letter of intent.
Funding Targets Next-Generation Quantum Systems
D-Wave said the funding will accelerate research and development for its annealing and gate-model quantum computing technologies.
The company plans to develop a 100,000-qubit annealing system. It is targeting applications in optimization, materials simulation, blockchain and artificial intelligence.
D-Wave is also developing a 10,000-qubit gate-model system. The company aims for the system to support 100 logical qubits and perform more than 1 million operations. Potential applications include quantum chemistry and quantum AI.
CEO Alan Baratz said the award will help D-Wave expand domestic quantum capabilities, strengthen its supply chain and bring more powerful systems to market.
U.S. Government Gets Equity Stake
As a condition of the funding, the Commerce Department will receive a minority, non-controlling equity stake in D-Wave. The company said the arrangement is designed to enhance potential returns for U.S. taxpayers.
The funding also supports broader CHIPS and Science Act goals to expand domestic quantum computing capacity and strengthen the supply chain needed to commercialize advanced systems.
Technical Setup Remains Weak
D-Wave remains below several key trend lines. The stock is 9.5% below its 20-day simple moving average of $18.81 and 20.9% below its 200-day SMA of $21.52.
Momentum also remains weak. The MACD is below its signal line, while its histogram is negative. In addition, the 20-day SMA remains below the 50-day SMA. A death cross formed in March, when the 50-day SMA fell below the 200-day SMA.
Traders may watch $19.50 as resistance and $16 as support.
Analyst Outlook
The stock carries a Buy consensus rating and an average price forecast of $38.78. Recent analyst moves include:
- Rosenblatt: Buy (Maintains forecast to $43.00) (July 28)
- Rosenblatt: Buy (Maintains forecast to $43.00) (Aug. 7)
- Wedbush: Outperform (Maintains forecast to $40.00) (Aug. 3)
Momentum Remains A Concern
D-Wave develops quantum computing systems, software and services, including annealing and gate-model technologies.
The company’s Benzinga Edge scorecard gives QBTS a momentum score of 11.83, highlighting its weak trend profile.
D-Wave also has exposure through quantum-focused ETFs, including Corgi Quantum Computing 2x Daily ETF (NASDAQ:XQTM), WisdomTree Quantum Computing Fund ETF (NASDAQ:WQTM) and Tradr 2X Long QBTS Daily ETF (NASDAQ:QBTX).
Price Action: D-Wave shares rose 2.29% to $16.96 in Tuesday premarket trading, according to Benzinga Pro data.
Photo via Shutterstock
